General Area in Kansas City>Question Details

Primetime25, Real Estate Pro in Los Angeles, CA

I'm a residential real estate investor looking for good rentals...do you know which areas i should be looking at?

Asked by Primetime25, Los Angeles, CA Mon Jul 19, 2010

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Sherri Ball’s answer
Depending on the area you’re interested in, real estate property values vary widely as with the rental market. If you are looking to maintain and hold on to rental property, now is the time to buy during a “down” market. With an escalated foreclosure rate, rental property is in high demand, meaning low vacancy rate. In a good real estate market, increased vacancy rate occurs.
Successful real estate investors swear that more profit in less desirable areas is best, dismissing the three factors of value, "Location,Location,Location".
Before making a purchase you should consider all of the facts. A good real estate investment rule of thumb as an average is a net rent is a double digit cap rate or at least 1% above Treasury bond after all expenses are paid. Example; If you net a $1,000 per month on a $100,000 investment, totaling $12,000 a year or 12% of $100,000, that’s a double digit return on your investment.
Important to know what the comparable net rents and vacancy rates are in the neighborhood you’re interested in. If you are looking in or around the Kansas City area, I would be than happy to offer my real estate assistance and help you locate the properties that fit your investment needs.
1 vote Thank Flag Link Tue Jul 20, 2010
If you are willing to go out of state and have the ability to pay cash I have heard of a lot of investors from here in Utah are looking in Indianapolis buying duplexes for under $20,000. I would recommend finding a good agent there.
0 votes Thank Flag Link Mon Jul 19, 2010
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