Hi BP! I'm new to the community but I just wanted to reach out for some advice to help get me started. I'm very much interested in investing in multi-family properties. I would like to know if there are specific cities to look into that are good for investors just starting out. I am in the Kansas City area and thought about Manhattan, KS as the homes around K-State university go for reasonable prices. Any help would be much appreciated! Thank you in advance!
Real Estate Agent · Kansas City, MO · Member since 2019 · 235 posts · 107 votes
4y
Hi Kieran,
I agree with Stephen. If you are flexible with location, there are many different ways you can pursue real estate investing with success in the KC metro.
7-10% cap rates are possible and since you live in KC you could always house hack. They don’t come up often, but turnkey duplexes will pop up in burbs with high rated school districts and strong property values (liberty mo, OP, Shawnee, lees summit, etc). Overall nice places to live. Only 3.5% down if you live there a year
Real Estate Broker · Huntsville, AL · Member since 2019 · 1k+ posts · 872 votes
4y
I'd say start in KC. That's a great market for multifamilies. I'd also recommend Toledo, Dayton, and Columbus. All three cities are growing and the prices make sense for the rents and appreciation.
Real Estate Agent · Kansas City, MO · Member since 2019 · 235 posts · 107 votes
4y
Hi Kieran,
I agree with Stephen. If you are flexible with location, there are many different ways you can pursue real estate investing with success in the KC metro.
7-10% cap rates are possible and since you live in KC you could always house hack. They don’t come up often, but turnkey duplexes will pop up in burbs with high rated school districts and strong property values (liberty mo, OP, Shawnee, lees summit, etc). Overall nice places to live. Only 3.5% down if you live there a year
Rental Property Investor · Lebanon, OH · Member since 2016 · 220 posts · 228 votes
4y
@Kieren Gromowski, I would network with people near you who are already investing in MF. Try to partner with them, even if it's only by investing your capital, so that you can learn from them. Then, try to do it on your own.
@Stephen Brown@Milton Chamberlain Thank you very much for your reply! I'll have to look into these. I'm trying to keep my options open as well and possibly include Single Family homes as it seems there are more affordable options.
@Stephen Brown@Milton Chamberlain Thank you very much for your reply! I'll have to look into these. I'm trying to keep my options open as well and possibly include Single Family homes as it seems there are more affordable options.
I don't think you'll be dissatisfied going either route. If you need to chat hit me up!
Atlanta, GA · Member since 2021 · 493 posts · 162 votes
4y
Welcome to the forum and congrats on getting started. Some good metrics to use to help determine markets are those experiencing trends like job growth, rent growth, income growth, job diversification, and population growth. Hope these help and best of luck going forward.
Rental Property Investor · Lebanon, OH · Member since 2016 · 220 posts · 228 votes
4y
@Kieren Gromowski, I would start with looking for a local REIA club and then look for other meet-ups in your area. You should be able to find meet-ups talked about here on BP. Not all meet-ups are equal and not all will benefit you. But, if you try a few, I think you'll find some good people who will help you grow.
Welcome to the forum and congrats on getting started. Some good metrics to use to help determine markets are those experiencing trends like job growth, rent growth, income growth, job diversification, and population growth. Hope these help and best of luck going forward.
Realtor · Lees Summit, MO · Member since 2017 · 1 post · 0 votes
4y
@Kieren Gromowski
Hi. I’ve got a couple of friends that solely invest in multi family homes in the KC area. I can get you guys in touch if you’d like. Additionally, my brokerage works primarily with investors. If you’re interested, I can send you my number if you had any questions.
Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
4y
@Kieren Gromowski my big concern would be that Manhattan is a small market that is geographically isolated from any other metropolitan market. There is nothing around it. Topeka is the closest city which is an hour away. Kansas City is nearly 2 hours away and has a fairly limited employer base consisting primarily of the university and the Fort Riley military base. I'm not saying that it's not a good place to invest but personally, I prefer Kansas City.
Real Estate Agent · Topeka, KS · Member since 2021 · 14 posts · 8 votes
4y
Hi Kieren- Welcome! Manhattan is a solid choice because of KSU. Lawrence is another because of KU. There will always be a need for off-campus houseing. I am actively investing in SFHs homes in Topeka because there is a rental shortage and the prices are quite affordable. I am constantly analyzing deals in Manhattan and Lawrence for the right multi-plex (I'm looking for an 8-12 unit) to come along. If you'd like to be on my MLS search as well as a daily FSBO listing that I subscribe to, I'd be happy to do that for you. I'm a licensed Realtor, FYI. Please don't hesitate to reach out with any questions you may have!
Investor · Topeka, KS · Member since 2020 · 669 posts · 488 votes
4y
@Kieren Gromowski several folks in here have brought up good points to consider. I invest in Topeka, but try to keep good tabs on our neighbors to the East and West. Something I've noticed is that the rents per bedroom on Manhattan properties are quite low compared to Lawrence. I'm not sure if this is just because the market is suppressed or because there is an over abundance of newer apartment buildings competing for those dollars.
@Mike D'Arrigo don't forget about the National Bio and Agro-Defense Facility. It opened up last year but to my knowledge they won't be fully ramped up and staffed for a couple of years. That may only be a few hundred additional families though.
@Greg Ross I would be interested in that daily FSBO list. If your willing to share?