Out of state investors looking at Kansas city

5 Replies

@Jonathan Popoalii , the answer is "all of the above".  You definitely need to find a local team that you trust to help you deal with all of the issues that come up with rental properties; including buying, selling, leasing, PM, make readies, and repairs.  However, I would always recommend you travel to the place you intend to invest so that you can meet your team face to face and so that you can get a true feeling for what the neighborhoods look like.  Everyone has a slightly different opinion of what is a "good neighborhood" and you need to make sure that your opinion lines up with your local team.

@Jonathan Popoalii never buy a property without an inspection even if you trust the person you are working with 100%. They may not be hiding anything but a good inspector might find that they are not even aware of. This applies to turn key properties that have been fully renovated, I would also recommend traveling to the market at least initially and getting to know the neighborhoods so that you know what class of neighborhood a property is in. Like most markets, Kansas City has good areas and bad areas, so you need to know what areas fit your criteria. 

@Jonathan Popoalii As a GC that has been often hired by out of state investors to “pick up the pieces” left from being taken advantage of by “turn key” providers-You should not only travel to the area but vet all aspects of the company wanting to sell you their services. Many excell at one area like finding properties but leave you completely in the dust with their lack of property managing skills. Have an attorney read their contract. Scour the internet for reviews (much overhead goes into hiding them these days.) Find other investors who have had their properties for over a year. I don’t say this to deter you. Kansas City is an amazing place to hold real estate but because of that there are predatory practices dominant in the industry. Remember-get a good property manager. If they offer turn-key then great. Don’t do it the other way around. Management and maintenance are the hard part.
Originally posted by @Jonathan Popoalii :

When investing OOS do you travel to the property or find reliable boots on the ground? Do you inspections or trust the person you are working with on deal?

 Pick the team, meet them, tour with them, then pick the property.  Always have a third party inspection done regardless.