According to recent article from Rismedia, rental vacancies are the lowest they have been since 2003 and expected to go lower.
I guess you could guess that if you drive down 135th street in South Overland Park. There are rental apartments everywhere and more on the way. Most of the newer complexes are over 99% percent full and have waiting lists.
This year has been the best year for The Ron Mowery Home Selling Team for selling investment properties. We have had great success representing buyers who are looking to diversify into real estate, especially in light of the turmoil in the stock market. According our investors they are averaging around 8 to 9% return on investment and getting very close to renting the single family homes for almost 1% of acquisition cost per month. For example, that would be $1500.00 per month on a home that cost $150,000.00 and they are able to get long term leases signed. This is not expected to end anytime soon according to the article.
In fact, real estate investors expect that return to greatly increase when they go to sell the properties in 5-10 years as the economy improves and renters become home owners. Most of these homes are being purchased at least 10% under current market value with the hope that that will increase in the future.
Home buyers have similar expectations. Since there are a lot of foreclosures and short sales in the market, they are able to purchase these at discounts almost unheard of. Recently we represented a buyer on a home in Prairie Village who bought a home for $177,900 when a home four doors down sold for $290,000. The home buyers estimate they will need to put about $40,000 into improvements, but that still leaves them with over $70,000 in equity. These deals are not prevalent, but buying homes 10-20% under value after improvements is not uncommon and if they plan to live in the home for awhile they should increase their returns through principle reduction payments and possible increased values.
Ron Mowery, Managing Partner of The Ron Mowery Home Selling Team has recently started representing clients who want to purchase distressed properties and have his team of contractors and sub-contractors do the improvements before they move in. “We have 2 different investment plans where we represent the clients, manage the repairs and sell the home and split the profits with the investors. We offer them the same guarantee as we do our home sellers, If We Don’t Sell Your Home In 59 Days, We Will Sell It For Free!” This gives the investors options to reduce their exposure and provide them with a comfort level knowing we have some skin in the game so we are sure to find properties that with the right improvements, can be flipped back into the market in a reasonably short period of time.
If you would like to find out how you might invest in real estate, give Ron a call at his office. 913.825.4025 or you can email him at firstname.lastname@example.org. You can search for homes on his website at www.propertiesinoverlandpark.com. Ron is a licensed Realtor with Keller Williams Realty Partners, Inc. in Overland Park, Kansas.