As many of our clients know, we work with a lot of families on renting homes as well as our investors who are wanting to purchase homes to rent in Olathe, Kansas. Single-family homes used for rental property have distinct advantages over other types of investments.
Home prices have adjusted 30-40% around the country (as well as our Kansas City area), mortgage rates are incredibly low and rents have risen in the past two years due to more demand and shorter supply. Indicators like these point to a strong and sustained rental market. A great reason savvy investors are spending their money on Kansas City Real Estate with the Char MacCallum Team.An typical investor in Olathe Kansas can borrow 75-80% at fixed interest rates on appreciating assets with definite tax advantages and reasonable control. The financing alone is attractive compared to some investments that require 50% cash and have floating rates at prime plus for one or two years.
Consider you bought a $125,000 home for cash that would rent for $1,250 per month. With $15,000 income and allowing for property taxes, insurance and maintenance, it is still reasonable to expect $10,000 net income. You’d have an 8% return on investment without considering tax savings or future appreciation compared with 5-year CDs paying less than 1.5% and a 10-year Treasury yield at 1.65%. Want to runYOUR investment numbers?
The reasonable control has a lot of appeal to many investors who find the volatility of the stock market unacceptable and don’t want the risk associated with some of the alternative investments. We know that our Kansas City and Olathe, Kansas investors are smart with their real estate investments! Helping our friends, past clients and investors is what we love to do – if you have questions, contact us at the office 913-782-8857
Please contact me if you’d like to know more about available opportunities to purchase rental homes in our Olathe and surrounding Kansas City areas. You can use our free search here http://www.findkansascityrealestate.com/