Are you thinking about purchasing property in Joplin, Missouri?
Joplin has been ranked as one of the nation’s fastest growing cities. This can be attributed to its ideal, central location in the midst of four major cities: St. Louis, Memphis, Oklahoma City and Kansas City. The ease in transportation and low cost of doing business has attracted a number of retail, industrial, and distribution plants to the city. As a result, Joplin’s population is on the rise and demand for housing has grown. What else can a real estate investor ask for?
Real estate as an investment option allows you to earn passive income. You can earn a fixed income every month or quarter from the comfort of your home. Despite the relative ease of earning an income, you should still do your research when considering the property that you wish to invest in.
To enjoy all the benefits on offer from real estate, you to research the local market. It is recommended that you work with a professional that has experience in the local area. If you are considering Joplin for your next investment, we suggest our reliable and experienced team at Pro X Property Management. Our experience in Joplin has been the difference for many investors in the past.
This article is meant to help you make a sound investment in the Joplin, MO real estate market. Here are a few things you should consider!
Why Invest in Joplin?
From a population perspective, the largest population bracket in Joplin is between the ages of 20 to 35. This demographic statistic bodes well for the housing situation in the city. With a young population, the demand for housing is only bound to grow.
Several companies are stepping up their services in Joplin. Thermal Engineering International is one of them, and the expansion of their power generation facility creates more employment opportunities and also entices other interested parties to Joplin. Other companies that are investing heavily in Joplin include Casey’s General Stores, Jasper Products, Refresco North America and Blue Buffalo.
Such information makes Joplin a profitable option for prospective investors. Companies have seen the potential for growth and are investing heavily in the area. With a low cost of living and sense of community, it is no wonder population in the city is on the rise.
A rental property investment in Joplin can be your way into this thriving community and business environment.
Tips for Buying Joplin, Missouri Investment Property
Tip #1: The right property at a reasonable price
Real estate comes in various forms, from bungalows to condominiums to luxury mansions. While they can exist within the same city, different types of property can perform differently from an investment standpoint. Choosing the right type of property at the right time becomes crucial for any investor.
The key is research. You will need to perform thorough due diligence in the different neighborhoods. Compared against the median price for property in the US, Joplin real estate is quite affordable. The variables that you should be on the look-out for include market price, occupancy, return on investment and capital growth.
The right property will make it affordable to hold the asset while providing sizeable income.
Tip #2: Determine your operating costs
Like any asset in your portfolio, property must be maintained in a certain condition to earn income or revenue. Let’s take a look at operating expenses and other affiliated costs.
Operating expenses will go towards maintaining your property in tip-top shape. On average, operating expenses vary between 15% to 60 % of your rental income, depending on several factors. They include the quality of finishes, building materials, amenities, age, and the type of development, among others.
From those listed, the age of the building is the one you should keep an eye for. This will contribute to the frequency of maintenance and general repairs and replacements. As an investor, you should seek to obtain such information from any potential property.
As a property owner, there are other costs that you will have to incur. These include homeowners’ association fees, property taxes, property insurance, landscaping, pest control etc.
Tip #3: Consider hiring a professional
Finding and bringing in a tenant is only the start of a property management journey. Maintaining your relationship with your tenants, as well as the property, is what could be considered the ‘business end’ to any investment. Property management is a key service that can help you achieve your investment goals.
Property management is a balance between the landlord and tenant. As the landlord, your goal is to make your investment as lucrative as possible with the least stress involved. For the tenant, they are interested in enjoying the space they have rented. A balance must be found otherwise one party is bound to feel neglected.
The services of a property management company come highly recommended. All the burden of running the unit will be shouldered by your property manager. With the right company, your tenant can enjoy a habitable and well-maintained space. The outcome is stable, passive income with less headaches and stress for you, the owner!
With its affordable cost of housing, Joplin serves as a good choice for a new property investor. There is a potential for earning stable, good income from your property. Your tenants can also enjoy the sense of community, low crime rate and low cost of living in the city.
Are you on the lookout for investment property in Joplin, Missouri? Consider hiring the services of a professional company with specialized information. Pro X Property Management are the experts who can help you make that all-important decision.
Take advantage of our expertise and give us a call today!