KC or the Triangle Market?? Which one??

Question

"Friends of the investment world, the question on my mind: 'KC or the Triangle'? Which market, Kansas City, MO or Raleigh, NC,…

As a newbie I’ve done my absolute best to identify a few sub-markets that meet my criteria and provide opportunities in both markets, but I’m currently still on the fence. I have no team (boots on the ground) in either market, so it’s bit difficult to establish relationships and or receive unbiased information.

Which market would you recommend, taking the following variables into consideration and why…if there’s any other variables that I may have overlooked please feel free to use them in your answer (if you select to).

Note: This would be an out of state purchase.

• RPR of .75-1.0 (+/-)

-DSCR loan program would be used

• Cash flow

-Cash flow > appreciation

• Annual appreciation (2-3%)

• Strong and or projected economic growth

• Solid wage growth

• Population growth

• Good school districts

• Low crime

-Basically class A & or B sub-markets

• Newer (1950/1960)+ Construction

• Turnkey (highly preferred)

- I’m not in and or near these markets, although I would use a property manager

• Maximum Purchase Price: $250k (maybe $300k)

If anyone opts to respond and or even read, I thank you and appreciate your help and time.

Chad Gray · Answer

Based on your question and the criteria it would have to be KC, you're not going to find properties in Raleigh that meet your criteria under 250K. If you look at some of the tertiary markets to Raleigh like Garner, Knightdale, Zebulon, Wendell, Clayton, Fuquay etc. you could probably find something closer to what you are looking for, but not in Raleigh. If you have more specific question about Raleigh, feel free to shoot me a message, but I would recommend touching base with @Steven May, sounds like he can help you out.

V.G Jason · Answer

You won't find what you're looking for the Triangle area with that budget. KC and Raleigh are completely different. KC is likely you're best and only option.

Steven May · Answer

Investor and agent here in Kansas City. I work almost 100% with out of state investors as boots on the ground here. KC is a great market for cash flow. I think we can find you that criteria you are looking for.

Moses Carrillo · Answer

@Steven May Thank You for taking the time to read and for your response, it’s appreciated. I’ve done some research on a few sub-markets (e.g. blue springs, Lee summit, etc). Are there sub-markets that you specialize in and or just the KC market in general? Feel free to DM if that makes it easier. Thank You and speak soon.

Virginia Franzese · Answer

I agree with Steven May! KC is an excellent for cash flow and our economic development outlook is strong.

Dustin Street · Answer

I'm biased, I was raised here lol, but KC would definitely fit your model. We have plenty of options that are in good areas, can make good cashflow, and face long term appreciation

Moses Carrillo · Answer

@Virginia Franzese thank you. There’s a few properties that we’ve been discussing and conducting due diligence on. Still continuing to research and learn about these sub-markets and responses like this only help, so Thank You. Like I previously mentioned in short form, not quite elaborated, cash flow and appreciation is ideal (of course), however cash flow is the goal here, however it doesn’t have to be much, I understand enough to have realistic expectations. As long as the property can cover expenses (PITI, Etc) and be eligible for the DSCR loan, we would be okay. Again, I thank you for your response.

Virginia Franzese · Answer

On average over the past 6 months:

Blue Springs homes have sold for $300,000 in just 8 days

Lee's Summit homes have sold for $390,000 also in 8 days

Both areas rent well and have strong school districts.

Much of the "big" development happening in KC is being driven by our INCREDIBLE new airport (Northland) and by the stadium development (KC Current and Royals) which is / will bring continued development to the riverfront, downtown, and midtown areas. It's a very exciting time to be a Kansas Citian!

Moses Carrillo · Answer

@Chad Gray first off Thank You for the response. Yes, I’ve performed a few analyses on properties in some of those surrounding sub-markets mentioned (e.g. knightdale, garner, etc). Thank You again. I’ll definitely reach out if I have any questions.

KC or the Triangle Market?? Which one??

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