The 4 Benefits of Real Estate Investing In Kansas City...Or Anywhere

4 Benefits of Real Estate Investing in Kansas CityThere are 4 Benefits when investing in real estate whether that's here in Kansas City, Tulsa, Austin or wherever. And I think it is important to understand these benefits before you buy an income property...not try to figure them out after you own!

Real estate investing is not rocket science. It's not easy, either. There is a fair amount of due diligence involved when scoping out whether or not any particular property will make a great investment property.

Over at BBQ Capital I did a four part series on the 4 Benefits of Real Estate Investing. And I'm not really in the mood to redo the series here. So I'm just going to give you the titles and point the way.

When you read the posts make sure you read the comments, as well. BBQ Capital has some very smart readers.

The 4 Benefits of Real Estate Investing

  1. Cash Flow Before Taxes
  2. Principal Reduction
  3. Depreciation
  4. Appreciation

There are of course other peripheral benefits like housing familiarity and leverage. But these four are measurable benefits and added together will tell you what your return on your investment will be. After all if you can buy one real estate investment with a 20% overall return in Kansas City or another rental property in Olathe, Kansas with an overall return of 26%, which would you buy?

Your comments are always welcome here!

Posted Friday Aug 17

Chris, Real estate investing is still a mixture of art and science. Numbers 1-3 are mostly science, but number 4 is definitely ART. Who really knows what lurcks in the future? Your 20% KC property just might be better than Olathe because it will appreciate more, its more saleable because it is in a bigger market, etc. etc. etc.

Bill Roberts

(08/22/07 08:39AM) — Chris Lengquist, RIPS

Bill - Knowing where growth will go (and not go) is an art.  Something you don't pick up from the statistics Zillow can offer.  Also, knowing neighborhoods in a negative transition as well.  Great observation.  But people don't need us.  :)

 

 

(12/18/07 09:17AM) — Bill Exeter (1031 Exchange Expert)

Hi Chris,

Great posts, and good information, especially the Oscar the Grouch graphic!  Nicely presented. 

(12/28/07 10:52AM) — Kim Tucker

Chris,

 Could we also post your series of articles in the MAREI library - this is good stuff that should be in a book somewhere.  My direct email is info@MAREInet.com if I forget to check back here.

 Kim

(12/28/07 11:42AM) — Chris Lengquist, RIPS

Of course you can.  Thanks.

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