For many individuals, acquiring an owner-occupied rental in Kansas City is an excellent opportunity. Transforming the property you reside in into a revenue-generating asset can be a game-changer!
However, similar to any investment, there are drawbacks to consider. If you are contemplating purchasing an owner-occupied rental property in Kansas City, continue reading to explore the advantages and disadvantages!
Pros and Cons Of An Owner Occupied Rental Property in Kansas City
The Pros
Let Others Cover Your Mortgage Costs
Imagine having other people cover your mortgage payments for you. When obtaining an FHA loan for a property, it must consist of up to 4 units. By carefully crunching the numbers beforehand, the rental income from the additional units should not only cover the property’s mortgage but also generate surplus income. This strategy allows you to own an investment property without bearing the full cost yourself!
Streamlined Financing Solutions for Real Estate Investments in Kansas City
Acquiring financing for an owner-occupied rental is generally smoother compared to other real estate investments. Securing a loan for a single-family rental or a larger multi-unit property necessitates specialized financing solutions.
Investing in Real Estate Excellence
When you reside nearby, your tenants are more inclined to maintain the property well. They are unlikely to create a mess in common areas or cause damage. Furthermore, the presence of a landlord nearby can deter disruptive late-night activities. This fosters a respectful atmosphere, leading to increased tenant satisfaction overall. Living in a property with excellent neighbors is a valuable benefit for any renter.
Take Control of Your Own Real Estate Investments
Managing a property with 4 or fewer units can be relatively straightforward. Building strong relationships with tenants is crucial for efficient property management. By maintaining open communication, you can promptly address any issues that arise. Rent collection is simplified when you’re physically present on-site – tenants are more likely to adhere to deadlines. Being hands-on streamlines the management process and fosters a sense of community.
The Cons
Living On-Site: Is It Really Worth It?
Living in your rental property in Kansas City might seem like a great idea, but the reality is you might not get the peace and privacy you desire. Being easily accessible to tenants can lead to constant interruptions, especially with difficult tenants who may contact you day and night with their issues. Maintaining a physical distance by living offsite can provide a much-needed separation between you and your tenants, allowing you to have some personal space. Furthermore, residing on the property can blur the lines between personal and professional relationships, potentially causing conflicts of interest. It’s essential to establish clear boundaries and maintain a strictly business relationship with all tenants to avoid any complications.
They Might Not Want To Live By YOU
Whether you are renting or buying in Kansas City, you want the place you live to feel like it’s truly yours. Residents desire a sense of ownership and comfort in their living space, without the feeling of being constantly monitored or restricted. When renting an owner-occupied property, tenants may feel like they are moving back in with mom and dad at Faithful Home Buyers KC LLC,!
Challenges with Reselling Your Property in Kansas City
From a statistical perspective, properties for investment purposes and multi-family units generally have a longer selling period compared to single-family homes. The demand for single-family homes is typically higher. If you prefer a temporary investment with less commitment, a single-family home might be a better option than a multi-family building.