Why invest in Kansas City (or other out-of-state markets)?

[Andrew Ross]

When I decided to go full-time in real estate, I already knew Denver (where I lived) wasn't going to be the place to do it. Now I love Denver, don't get me wrong, but the average home price for Denver is over $500,000... Kind of a big barrier to entry for a new investor with shallow pockets and few lending connections.

So down the rabbit hole of finding a market that made sense I went, looking for reasonably priced homes with decent appreciation and a sustainable rental market. Was that asking too much?

No! Because I found Kansas City.

Kansas City had everything I was looking for in a rental market from affordable home pricing (average $200k!) to stable, blue collar, working class tenants that care about their homes and pay rent on time. I was quickly able to find and analyze my first deal, make an offer and close on my first out of state rental property.

Since that first deal I've continued to concentrate all efforts in the Kansas City market with incredible success on my own portfolio while simultaneously launching my first real estate business offering turnkey rental properties to other investors.

Wherever you are in your real estate journey, consider making the leap into other markets if the numbers just don't make sense in your area. It sounds stressful to be so far away from your assets but what can't you solve over the phone these days? During Covid, many of us transitioned to working almost entirely remotely - if you can manage employees from the comfort of your own home, why couldn't you manage a house that's been stable for 50+ years without you from the comfort of your own home?

Trust me, you can.

[Travis Devine]

Good evening!

Thank you for sharing your experience. Can you talk about analyzing your first deal. What about Kansas City stood out to you?How did you find a team to work with in Kansas City? I'm looking around but haven't found a City that I am willing to go all in on. Thanks!