KCMO Cashflow VS. Appreciation

[Account Closed]

Hi Everyone,

I have been looking into the KCMO market quite a bit recently. While all the TK deals well qualified under the 1% rule, I can't help but think that KCMO is a pure cashflow market, as the homes available for out of state investors are really just not going to appreciate. A lot of these homes are also not brick homes, so even if I do a gut job and put in new everything, the life span of the shell of the home is still limited, not to mention MO has state income tax. And yes, since I am out of state I can only consider doing TK deals.

So it will basically take me about 10 years to make my money back if I purchased with cash, and by that time all major appliances and the roof might need replacing, and I will have to hold onto the home forever because the chance of selling the home to an owner occupant is slim. Unless another investor comes along and has no problem replacing all major appliances at a steep discount, what exactly would be the exist strategy in KCMO?

Am I just making this up or are these legitimate worries?

Thanks everyone for any input!!