Investing in Kansas City MO zip code 64130, 64128

[Krish Das]

Hello,

I am an out of state investor trying to buy a portfolio of houses in Kansas City MO Zip code 64130 and 64128. All the houses are more than 100 years old and the rents are between 550 and 700 per month. I am looking for advice on potential issues that I should be aware of, and whether it will be a good deal or not. The house prices are between 35-40k, conditions are both good and bad (some need minor to moderate repairs). I would love to know about the rental market, the rental season, the pros and cons about those zip codes area. The street names and the zip codes are as follows:

Monroe Ave, 64130

E 43rd St, 64130

Euclid Ave, 64130

Park Ave, 64130

S Benton Ave, 64130

Myrtle Ave, 64128

Bales Ave, 64128

Indiana Ave, 64128

Thanks,

KD

[Luther Wilson III]

No problem, @Krish Das.

Once again the #1 rule in real estate investing:  LOCATION, LOCATION, LOCATION

Here are the biggest cons about these locations:

1.  The crime.

2.  The poor school quality.

3.  The older homes that usually require more maintenance & upkeep.

4.   Low-income areas, in general, tend to bring on low-end people and low-end types of problems.

Here are the biggest pros about these locations:  (YOU MIGHT GET LUCKY)

1.  You might get lucky with the tax benefits and write offs.  (opportunity zones, loss of income, mortgage interest, etc.)

2. If you're okay with charitable organizations and dealing with HUD or other subsidized rent programs, etc. then you might get lucky.

3.  You might get lucky and break even at the end of the day when you dispose of the property.

Here's the deal:  These areas are tough...  The only people who I've seen have any kind of decent, long-term success with it are those who are here on the ground, they handle their own maintencance & contracting and they do their own property management.  (If you have to hire out for property management or contracting & maintenance then good luck.)

Ask around and don't say we didn't warn you.  ;)