KANSAS CITY, Mo. — As the housing market recovers in the Kansas City area, opportunities to make money exist in owning rental properties, Katie Yeager of Your Future Address explained on the FOX 4 Morning Show.
She said owning rental properties is a great way to diversify finances, and there is money to be made in the process.
“Were seeing a lot of people who are getting a really healthy return on invested capital in rentals,” she said.
People who have poor credit after foreclosing on homes are now looking for rentals, Yeager said. She recommends taking an expert, a landlord who owns several properties, out to lunch to get real-world advice.
She said owning rental properties now has a higher return than house ‘flipping,’ or renovating a house in disrepair.
Homepath.com, the Fannie Mae foreclosure website, has properties that only require 10 percent down on a mortgage, rather than the usual 25 percent, she said.
She said it’s important to do homework before making any property purchase.
“You really have to be careful about where you’re purchasing,” she said. “Make sure that you are setting the comps, looking at the historical value of the neighborhood, so that you’re not getting yourself underwater in the property should things change.”
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