Missouri is full of surprises – like the fact that Kansas City has more fountains than any city in the world except Rome. But what’s not surprising, once you take a closer look, is Missouri’s appeal to real estate investors. With a strategic location, affordable property prices, and a growing economy, Missouri presents an exciting opportunity for those looking to make a real estate investment. Whether you're seeking cash flow or a future investment hotspot, this state has plenty to offer.
In this guide, we’ll walk you through everything you need to know, from securing the right financing to exploring different property types. Keep reading to discover how you can tap into Missouri’s investment potential with a little help from Waltz.
We are providing the following discussion to you for informational purposes only. All investments, including real estate, involve risk, and we encourage you to invest carefully. The information in this article is not intended to replace or serve as a substitute for any legal, real estate, tax, or other professional advice or service. You should consult with a professional in the respective legal, tax, accounting, real estate, or other professional area before making any decisions or entering into any contracts relating to a rental property.
Many real estate investors use debt-service-coverage-ratio (DSCR) loans. DSCR loans are tailored to foreign investors looking to buy income-generating properties.
A DSCR loan allows investors to purchase rental properties in Missouri without needing to live there. Unlike traditional loans, DSCR loans don’t depend on the borrower’s personal income; they focus instead on the property’s cash flow.
These loans offer flexible documentation and qualification requirements, making it easier for foreign investors to buy property in Missouri and beyond. It streamlines the process compared to a conventional mortgage.
DSCR (debt-service- coverage- ratio) loans provide a simple and effective financing option for foreign nationals interested in income-generating properties in Missouri.
Here’s why DSCR loans are viable option:
With DSCR loans, international investors can quickly expand their real estate portfolios.
Lenders consider several factors when reviewing applications. Understanding these can make the process smoother and improve your chances of approval in Missouri.1 Here’s what you should know:
Most lenders: U.S. lenders usually prefer income earned in the U.S. because it is easier to verify. If your income comes from another country, you will need extra documents, such as translated bank statements, proof of salary, and U.S. tax returns if available. Even with the right paperwork, delays or denials often happen because many lenders do not work with foreign financial systems.
Waltz: Income streams vary, and at Waltz, we’re here to work with what makes sense for you. Whether your earnings are from the U.S. or another country, we accept documents like local bank statements, employer pay slips, and rental income from properties you own. We also consider the rental income the Missouri property you want to buy could earn, giving you a fair evaluation.
Most lenders: Foreign buyers are often asked to make large down payments. These payments are usually 30–50% of the property price. In some cases, this is two times the amount expected for investment properties. Some lenders also require extra savings to cover possible costs, like repairs or empty rental months, which increases upfront expenses.
Waltz: We offer more flexible options. While 30% down payments are common, some qualified buyers can pay as little as 25%. We also adjust reserves to match your financial situation and the rental income the property could generate.
Most lenders: Many lenders require U.S. identification, such as a passport and visa. For investment properties, buyers are often required to create a U.S.-based LLC (Limited Liability Company), which involves setting it up and submitting its legal documents.
Waltz: We make this process easier for international buyers. All you need is a valid passport for identification. If you need an LLC, our Investor KitToolkit helps you set one up quickly and get an EIN (Employer Identification Number) in minutes.
Most lenders: Most lenders rely on U.S.-based credit scores, which can make it hard for international buyers without a U.S. credit history. Even if you have strong credit in your home country, it can still lead to delays or denials.
Waltz: We understand that building a U.S. credit history can be difficult. That’s why we review your credit from your home country among other factors to determine your creditworthiness. This allows us to fairly assess your financial reliability without requiring a U.S.-based credit score.
Find out how international investors have benefited from working with Waltz.
Missouri’s diverse property market offers something for a variety of investment strategies. The type of property you select will depend on your ultimate financial goals.
Here are some key property types to consider:
Missouri offers several advantages for foreign nationals considering property investments:
Kansas City is known for its exciting arts scene and rich history. The Crossroads Arts District is a growing area that attracts young professionals and businesses, making it a great spot for rental properties. Kansas City also has a low cost of living and lots of redevelopment projects, like the $100 million renovation of the Country Club Plaza, which will add luxury shops and restaurants to this growing area. Major industries contributing to Kansas City's economy include bioscience, technology, and manufacturing, while key attractions like the Nelson-Atkins Museum of Art and the Kansas City Zoo draw residents and visitors alike.
St. Louis combines affordability with high rental demand, particularly in neighborhoods like Central West End and Soulard. The city is home to iconic landmarks such as the Gateway Arch, which welcomed 2.4 million visitors in 2023, the highest number in a decade. St. Louis is also known for its esteemed universities and robust corporate presence, which includes Boeing, Edward Jones, and Anheuser-Busch.
As a regional hub in southwestern Missouri, Springfield's economy is bolstered by the healthcare and education sectors. The presence of institutions like Missouri State University (with a little over 20,000 enrolled students) ensures a stable tenant pool and Springfield’s metro workforce grew 9.1% over the last ten years. Plus, its affordable property prices make it an appealing choice for investors seeking steady rental income.
Home to Missouri’s largest university, the University of Missouri, Columbia provides consistent demand for rental properties for students, faculty, and the city’s larger population. Columbia provides a lot of big-city conveniences with an affordable housing market (an average of $293,070, compared to the national average of $356,585). Continued demand and affordable entry costs make Columbia attractive for Missouri real estate investing.
Branson is located in the scenic Ozark Mountains and boasts a thriving entertainment and tourism industry. In 2023, Branson welcomed over 10 million visitors, which topped a new record for the city. Branson is popular with short-term renters, and its increasing popularity ensures consistent demand throughout the year.
There’s a lot to be excited about when it comes to Missouri real estate investing. However, there are some special considerations to keep in mind before you take the plunge and purchase in Missouri. These include:
Refinancing your Missouri investment property means replacing your existing mortgage with a new one. This allows you to leverage your property’s equity to fund new investment opportunities.
Waltz provides tailored solutions to make the refinancing process smoother for Missouri real estate investors. With our expertise, you can confidently optimize your investment strategy in Missouri. For foreign nationals, the refinancing process typically includes:
For foreign investors looking to improve their terms, rate-and-term refinancing offers an opportunity to do just that. This option lets you adjust the terms of your current mortgage, potentially securing more favorable loan conditions. Even if you refinance at a lower interest rate, it’s worth noting that your total finance charges could end up being higher over the life of the loan.
Cash-out refinancing enables you to tap into your property’s equity and borrow more than your current mortgage balance, based on the original equity.
For those looking to invest in Missouri real estate, the extra funds can be used for a variety of purposes, such as home improvements, debt consolidation, or a down payment on another property. This gives you cash at closing, expanding your investment opportunity potential.
1. Find a profitable investment
Think about what you want from the property and find a place that fits your budget and your goals. For example, you might want steady rental income from a multi-family property or a quick flip from a suburban house.
2. Gather essential documents
You'll need a few key documents like your passport, proof of income (pay stubs or bank statements), and details on the property you’re interested in. Having everything ready will speed things up.
3. Select a lender experienced with foreign nationals
Work with a lender who’s experienced with international buyers. A lender like Waltz will walk you through the process with guidance tailored to your situation.
4. Set up an LLC and U.S. bank account
You’ll need a U.S.-based LLC and bank account for investment properties.2 It’s a simple process, and Waltz can help you set up your LLC and get your Employer Identification Number (EIN) quickly.
5. Submit your loan application
Once everything’s ready, submit your application. Make sure all your paperwork is complete to avoid delays.
6. Perform due diligence
Before sealing the deal, hire an inspector to take a close look at the property. Make sure it’s in good shape, check that the price matches its value, and confirm that the terms fit what you’re expecting.
7. Complete the purchase process
When everything checks out, sign the papers, transfer the funds, and finalize your purchase. It’s that easy! Missouri offers a unique mix of bustling cities, rolling hills, and a thriving real estate market. Whether you're eyeing a rental property in Kansas City or a vacation spot near the Ozarks, Missouri has plenty of opportunities to grow your portfolio.
With Waltz, you can eliminate the headache of traditional property acquisition. Let’s make your investment journey simple and successful!
Apply for a DSCR loan today!
