Missouri real estate is one of the best-kept secrets in the US. Its low home price, around $238,760, makes it incredibly affordable compared to other states, and it's experiencing a housing crunch: home inventory has dropped over 10% in the past year, making rental properties an ideal solution for residents. In fact, the average home spends less than a month on the market before sale.
At the same time, values have risen 5% from 2022 to 2023. It's essential to act fast to snap up available rental properties; DSCR loans make this easy with their fast approval process.
Despite being ranked only the 18th fastest growing economy in the country - a major jump from its status at 33rd several years ago - Missouri has outpaced the national average in GDP growth at 2.6%, much higher than the overall US growth of 2%.
A highly diversified economy is a healthy one, and Missouri is consistently ranked in the top 10 for economic diversity. In fact, the Hachman Diversity Index, which measures economic diversity, ranked the state number 1 in 2021, meaning that you can rely upon steady rents thanks to the many options for tenants when it comes to finding a job. Unemployment is quite low at 2.7%, far less than the national average of 3.5%.
It's clear that rental properties in Missouri, though perhaps not as glamorous as in other states, are a wise choice, and a DSCR loan makes it quite simple to get involved in this promising market.
Every state has slightly different requirements for a DSCR loan; different lenders, like credit unions, banks, and private companies, will also have unique stipulations. However, these are what most DSCR lenders are looking for in Missouri.
If you make loan payments ahead of time, you'll need to pay a percentage of the overall loan. This is usually on a step-down schedule.
St. Louis and Kansas City are undeniably the hottest places to add to your real estate portfolio in Missouri, thanks to the high rental income generated and great economic potential.
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📍 St. LouisIn St. Louis, the average value for a single-family home is $171,870, much lower than in other states, meaning that your property's income potential far outpaces the cost. Medium rent across all residential property types is $1,200: net operating income is more than enough income to satisfy your payments. Office space is more lucrative here, which makes sense given that this is a governmental hub: you can expect your office building rental properties to make $23.19 per square foot. |
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📍 Kansas CityKansas City accounts for 20% of the region's employment, particularly in healthcare and retail. Home values are much higher at $231,454, a 3.6% increase from 2022. Investors can expect their residential rental property to make, on average, $1,313: slightly higher than in St. Louis, though with lower profit margins. As in St. Louis, office space is a better investment than retail: offices make $21.74 per square foot on average, while retail spaces are only $17.11 per square foot. |
Both St. Louis and Kansas City have great potential, given that their economies have shown excellent growth over the past few years. A real estate investment here is a wise purchase - and DSCR loans are one of the wisest ways to purchase property for investors.
Thousands of investors have trusted us to provide a DSCR loan that helps them achieve their financial goals faster than other loan types. As with most lenders, you can invest under a corporate entity to protect your interests: all we need is your credit score and information about the property in question. DSCR loans are a great investment, and no one has better interest rates or a simpler application than Visio Lending.
Let us help you purchase investment property through our efficient and competitive loans. Contact us today to learn more about this loan type and how it can help you reach your goals faster than ever.
Check out some of Visio Lending's recently closed DSCR loans in Missouri.
St. Louis, MO
Kansas City, MO
Kansas City, MO
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Visio Lending is the nation's premier lender for buy and hold investors offering, long-term loans for SFR rental properties, including vacation rentals.