If you are interested in buying property, you need to know what makes a good real estate investment in the Wichita market. There are a few important things to consider, and an experienced Wichita property manager can help you find a residential or commercial opportunity that increases your chances for success.
Buying Based on Cash Flow
In Wichita, we aren’t on one of the coasts where you can expect large amounts of appreciation with your investment. So buy property based on cash flow. Your goal should be to buy right up front and to avoid large capital investments. Make sure you have the property’s structure inspected. You are looking for a good purchase price that reflects the value of what you’re buying. Check the air conditioning and the mechanical systems. For residential property investment, your best option is to find a home that might need some minor changes, such as new floors or fresh paint, but is structurally sound. You want to be able to easily convert the home into something nice for your potential tenant.
Choose a Good Location
Location is always important when you’re investing in real estate. The local market will always matter so you can understand your demographic. For example, with commercial property, if you’re looking for retail, you want to know what people in the area spend money on. You’ll need to know what kind of traffic moves through the area. This counts when you’re choosing an investment. A good property manager will have access to different databases that can provide you with such information. At Property Management Partners, we want to be more than property managers. We want to be a full service real estate consulting business that can provide this data for you.
So when you’re investing in the Wichita real estate market, focus on cash flow, and look at your maintenance and debt coverage. Prepare for a little appreciation in the market, but probably no more than around three percent. The good news is that you’re making a more secure investment because you won’t have to worry about a 20 percent loss due to the market ups and downs. Buy right, avoid large capital items, chose a god location, and create a clean and desirable home for your tenants. You’ll get a good return on your investment.
If you have any questions about how to invest, contact us at Property Management Partners.