A real estate portfolio can be the best way to track your real estate resume, growth, and wealth as you continue to accumulate properties. If you have thought about building yours, finding a city that is on the rise and perfect for investors can be essential. Kansas City is continuing to grow in popularity and can be the ideal location for real estate investors to find growing properties.
Building a real estate portfolio is similar to an average investment portfolio. You want to diversify your investments, focus on your current budget, and follow through on your wealth goals. If you are looking to develop your real estate portfolio in Kansas City, there are some important factors to consider to get you the financial success you are searching for.
Why Choose Kansas City?
In the eyes of the real estate market, Kansas City has been consistently performing well. With it being the largest city in its area, it carries a strong demand for real estate, causing anything from apartments to multi-family homes to be high value the moment they go up for sale. The town’s population is constantly growing, driving intense job growth as well.
With all these factors in mind, Kansas City is a gold mine for real estate investors as people move into the city daily. Whether people are moving to be closer to the Missouri River Market or because they have taken a job there, there are around 2.4 million residents and counting there looking for properties.
Look For Emerging Neighborhoods
As Kansas City continues to grow for the people within, multiple areas are being renovated and fixed up to make room for the new residents. By investing in emerging neighborhoods, you are reaping the financial benefits for decades to come. These areas offer amazing growth potential and may cost you less to invest in than already established properties.
In emerging neighborhoods, there are also possible tax benefits to look out for when it comes to investing or flipping a house in that area. You can use these benefits to create a better home for renters and attract them to the area.
Diversify Your Properties
Like any investment portfolio, you want to diversify your options. While all your investments in a real estate portfolio are real estate, there are various methods to diversify and allow you to grow your wealth in many different ways. If you choose to invest in Kansas City, don’t put all your eggs in one basket. Try to find different investments that fit your budget and give you a wide range of properties. This could be an apartment condo or complex, a townhouse, a single-family home, or a multi-family home. Not only should you aim for different style properties, but also different locations within Kansas City.
There are many areas you can branch out in Kansas City. For example, the Midtown/Plaza, where you can find an urban/suburban feel and be connected to dozens of blocks and parkways. Then, Waldo has a more suburban feel with many restaurants and coffee shops. Lastly, Shoal Creek Valley has a sparse suburban feel with parks, restaurants, and coffee shops. These are only a few areas in Kansas City to look into when choosing to diversify your real estate portfolio.
Research Your Financial Options
If you are looking to invest in multiple properties, consider the financial options at your disposal. Whether you use all, none, or a mix of them, they are still good to remember when adding to your portfolio.
There is always the option of utilizing your own savings funds or retirement funds. If you have put away money to use for future investments, this option may be a clear one to take. There is also the option of conventional bank loans. You might be eligible for a conventional bank loan depending on your financial background and monetary needs. Lastly, you have the option of a hard money loan. This short-term loan comes from a hard money lender instead of a traditional lender. The loan would come from an individual or private company that will accept the property themselves or as collateral. This option can be great if you want to consider a less traditional loan and lender application. If you choose to do a fixer-upper, a loan like this can be beneficial as you get your profits back after the house sells.
Building a real estate portfolio in Kansas City can bring great wealth to your future. If you have any questions about expanding your real estate portfolio and how a hard money loan can help you, reach out to the team at KC Investor Funding.