Commercial Real Estate investing in Kansas City.

10 Replies

Hey @Jason Hawk , this particular thread didn't seem to take off, did you get traction anywhere else? I'm looking to enter the KC market as a multifamily syndicator, and am looking to learn from local experts to get started!

@Mason Fiascone I have someone you should speak with about what you are looking to do.  He has some great experience in the space.  His name is @Logan Freeman and has helped with numerous syndications in the KC area as well as a great source for off market multifamily.  If you would like an introduction I would be glad to make it.

Originally posted by @Colin Douthit :

@Mason Fiascone I have someone you should speak with about what you are looking to do.  He has some great experience in the space.  His name is @Logan Freeman and has helped with numerous syndications in the KC area as well as a great source for off market multifamily.  If you would like an introduction I would be glad to make it.

 Hey Colin, thanks so much! Someone else just recommended I reach out to Logan as well - he must be great! I'd love an introduction if you're willing to make it. I'll Private Message you now with my info.

@Mason Fiascone

I'm interested in your rationale for choosing Kansas City as a target market. We have a number of California clients who are looking to the Midwest for untapped potential, but we don't see many people targeting Kansas City.

Care to share your market thesis?

@Tyler Kastelberg happy to share, there were a few key factors:

1. I was looking for markets where my trusted property manager already operates, removing a significant barrier to entry (finding the right PM, or moving the right PM to a new market)

2. I looked at all the available markets and stacked up the following characteristics to determine the Top 2 (of 7) markets to go after. Based on where Kansas City stands with all these metrics (and in particular the blue highlighted ones), I identified KC as the #2 priority market.

Hope that helps, let me know if you have any questions on my methodology!

@Mason Fiascone

I love the data-driven approach.

One of the biggest mistakes I made on my first purchase was not having a trusted property manager before purchase. In one year I went through 4 different managers, and I still haven't found the "right" one -- very wise to have the operator on top of your criteria.

Have you considered looking at the monthly pay gap between renting and buying? 

Most of our institutional customers measure the difference between monthly rents and average monthly mortgage. In markets (and neighborhoods) where renting is significantly cheaper than owning, you find much higher quality and longer-term tenants. 

Originally posted by @Tyler Kastelberg :

@Mason Fiascone

I love the data-driven approach.

One of the biggest mistakes I made on my first purchase was not having a trusted property manager before purchase. In one year I went through 4 different managers, and I still haven't found the "right" one -- very wise to have the operator on top of your criteria.

Have you considered looking at the monthly pay gap between renting and buying? 

Most of our institutional customers measure the difference between monthly rents and average monthly mortgage. In markets (and neighborhoods) where renting is significantly cheaper than owning, you find much higher quality and longer-term tenants. 

Thanks! Ah yes, I've heard too many nightmare stories about PMs that having a trusted PM was almost more important than the market question. Gratefully I had a few markets to choose from and it narrowed down my search from "everywhere in the US" to a few markets.

One thing I forgot to mention is I'm also looking only at metro areas with 250k+ population, so typically no tertiary markets.

Ah, I like that metric. I was using rent % of income, and Rent vs. Own % (from datausa.io), but I like the idea of comparing to the mortgage payment vs. the home price or income since that would give a strong indication of if there are long-term or just short-term renters in a market - great addition! Thanks, Tyler.

@Colin Douthit - would love to connect with you to learn more about the Kansas City, MO market! Recently wrote a blog post on the BP Member Blogs and mentioned Kansas City as a pretty good bet to find a decent deal. Working with a few others to create a deep drive into a few cities and creating a guide for non-local investors to better understand each city. Would you be open to a 30 minute chat about it?

Ameet Mehta
Syndication Pro

SyndicationPro

I love Kansas City. I lived there for a short period and the area is great. I wouldn't hesitate to buy there.