I'm a fairly novice investor from Los Angeles, and am really looking out-of-state to build my portfolio (since rental properties don't make sense here in southern Cali).
I've read quite a bit online and am now debating between two areas: Kansas City, MO or Indianapolis, IN.
Would love to hear what investors think of the pros & cons of each area? Looking to build my portfolio in one of the areas and have it managed by a single PM, so this is naturally a large decision. Also, I'm sure there are things I'm not thinking through here in Cali about laws/rules for rentals in those states.
Would love to hear from BP investors about deals found in either area. What did you learn that you did not know before? How is your COC return?
@Rohan J. We sell turn key properties in both Indianapolis and Kansas City and know the markets well. They're both good cash flow markets and you can do well in the right areas in either one. Both have strong, diverse economies with good economic and demographic fundamentals but their economies are based on different industries. I'd be happy to share my insights with you if you'd like. You can also find podcasts where I talk about both markets on my website.
I'm not investing in either right now, but I stopped in both last summer to check them out.
Personally, my vote would be Indianapolis. KC seems very complicated in terms of figuring out the neighborhoods. Indy felt like it was vibrant and making some good infrastructure investments.
this is just my two cents of course, and more just my impressions than actual advice!
Kansas City FTW! (That being said, I've never been to Indianapolis, but I've actually heard the cities are very similar so both should work as far as investing goes.)
Neither, especially if I'm living in SoCal (which I am, like you). Otherwise, if I'm living in KC, then it is KC. If I'm living in Indy, then it is Indy. Don't over estimate your home court advantage or underestimate your out of state disadvantages as I see most newbies do (myself included back in the day). I've owned buy and hold property both in state and out of state for the last nearly 15 years, so I have a fairly long history of personal experience both ways and have nothing to sell you either way.
@Rohan J. As others have said there are a lot of similarities in both cities for investors. I have investments in Indy and my personal bias is that is my favorite midwest city. Still I am looking to make my first investments in Kansas City soon following a trip I made there last month. KC is also making some infrastructure improvements, and they opened a streetcar while I was there, the first in over 50 years in the city.