First Time Investor in Kansas City

Multi-Family and Apartment Investing
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First Time Investor in Kansas City

Edward Lin
Investor · Escondido, CA · Member since 2019 · 2 posts · 1 vote

Hi Everyone,

First and foremost, a big thank you to the BiggerPockets community for the helpful and thoughtful advice shared on these forums! I have already learned a tremendous amount in the short time (a week) that I've been a member. Looking forward to learning more and giving back to others.

I am a first time out of state real estate investor and a bit nervous to pull the trigger. I have my eyes set on a duplex in KCMO, the North East Kansas City area (between Pendleton Heights and South Indian Mound), right north of Independence Ave. 64124. It's clear that this isn't the best of neighborhoods but I have read that crime has dropped in recent years. Anyways, I just wanted to see if anyone was very familiar with the location and its recent developments. The homes (duplex) here are close to 100 years old (1920s) and I'm wondering what that would mean maintenance wise. Also there are current tenants residing in the property and it is currently being sold from an investor portfolio. Any advice as to how to approach, negotiate the purchase of this property?

Also would you if anyone could offer good investor friendly referrals:

1. Local Lender

2. Real Estate Attorney

3. Property Management

4. Insurance Agent

Thank you for all your help!

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Logan Freeman
Specialist · Kansas City, MO · Member since 2018 · 331 posts · 148 votes
7y

@Edward Lin I am glad you are north of independence ave. If you put the right team in place, I am sure you'll do great. @Matt Moylan can help on the insurance side. @Colin Douthit can help on the GC/LEASING/PM side for you and if you DM me I can send you a lender and attorney! 

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  • Nicholas Parish
    Rental Property Investor · Kansas City, MO · Member since 2019 · 40 posts · 19 votes
    7y

    I agree that the area is definitely on the up and up. It seems that with the addition of the opportunity zones in that area, it could definitely see solid growth in the near future. There's definitely some validity in your statement about it not being the best neighborhood, which should be considered, but that isn't to say the potential isn't there. 

    Are there any particular reasons that draw you towards multi-family? In our experience in Kansas City, multi-family tends to have less than ideal tenants when looking at properties in B-class neighborhoods. 

    Please feel free to ask any questions. I'm happy to help. 

    0Reply
  • Logan Freeman
    Specialist · Kansas City, MO · Member since 2018 · 331 posts · 148 votes
    7y

    @Edward Lin I am glad you are north of independence ave. If you put the right team in place, I am sure you'll do great. @Matt Moylan can help on the insurance side. @Colin Douthit can help on the GC/LEASING/PM side for you and if you DM me I can send you a lender and attorney! 

    2Reply
  • Colin Douthit
    Property Manager · Kansas City · Member since 2019 · 50 posts · 29 votes
    7y

    @Edward Lin the area is transitioning and trending in the right direction.  In regards to maintenance on a duplex or any home that age so much will depend on how it has been kept up and what updates have been made. I would look at the systems particularly.

    As with any area, tenant selection is going be important, but I would make sure we are picking someone that will be in line with the direction the area is trending and not where it came from.  

    Any questions on GC/PM feel free to DM me for more information or if you have any more questions.

    1Reply
  • Edward Lin
    OP
    Investor · Escondido, CA · Member since 2019 · 2 posts · 1 vote
    7y

    @Nicholas Parish I've read a little about Opportunity Zones but not sure how that plays out tax wise. Will need to dig more into, thanks. I'm drawn to multi unit homes because of the mitigated risk for vacancies and the low price point entry here.

    @Logan Freeman thanks for these, please DM a lender you don't mind, thank you.

    @Colin Douthit glad that you reached out. I've had a difficult time trying to reach property managers in the KCMO area. They either don't service the location or not available to speak. I think the biggest concern is the property management part of the investment. Do you have any stats on the 64124 zip code?

    0Reply
  • Colin Douthit
    Property Manager · Kansas City · Member since 2019 · 50 posts · 29 votes
    7y

    @Edward Lin I would be glad to help you dig into the KCMO market.  We definitely try to be selective in certain parts of town because of the possible tenant quality issues that can arise.  DM me the address and we can dig into the details for you.

    0Reply
  • Mike D'ArrigoPro Member
    Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
    7y

    @Edward Lin multi family can be tricky and have some inherent tenant related challenges even in better neighborhoods. I've yet to see them perform well in more sketchy areas. I've been doing this a long time and have yet to see them perform well, especially for the out of state investor. What is the rent per side? That will tell a lot about the type of renter you will get.

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