Looking at investing in Kansas city

Looking at investing in Kansas city

Riley BarclayPro Member
Member since 2020 · 15 posts · 5 votes

I am looking into purchasing my first rental property and am open to either SFH or Multi-family. Budget is around 100k-125k for SFH and $225 for multi-family. Kansas city is an area I have been interested in but I am looking for some advice for how the market is. Or would a different part of the country be better. I've heard some good things about Tulsa, Little Rock, and San Antonio. Thanks!

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Investor · Austin & San Antonio, TX · Member since 2021 · 35 posts · 199 votes
5y

@Riley Barclay can confirm San Antonio is great for investor. Affordable, relatively cheap cost of living, large population. Big Bang for your buck in my opinion, especially for buy and hold. Recently announced 2nd largest growing city in the US and it’s starting to show. Many investors are turning their heads this way...many trickling over here from Austin profit margins get smaller and smaller for certain investment strategies.

Hope this helps!

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  • Investor · Austin & San Antonio, TX · Member since 2021 · 35 posts · 199 votes
    5y

    @Riley Barclay can confirm San Antonio is great for investor. Affordable, relatively cheap cost of living, large population. Big Bang for your buck in my opinion, especially for buy and hold. Recently announced 2nd largest growing city in the US and it’s starting to show. Many investors are turning their heads this way...many trickling over here from Austin profit margins get smaller and smaller for certain investment strategies.

    Hope this helps!

  • Rental Property Investor · Prairie Village, KS · Member since 2017 · 13 posts · 7 votes
    5y

    Hi Riley, I live and invest in the KC area. BRRR 1% rule type properties. Like everywhere, the market is tight right now AND you'll want to have some knowledge of the area before investing - coupled with your strategy A, B, C or D neighborhood stuff. If you're interested in turnkey, you can't do much better anywhere than Nathan Brooks with Bridge Turnkey.

  • Real Estate Agent · Tulsa, OK · Member since 2019 · 130 posts · 66 votes
    5y

    Tulsa has been a great market to invest in. Landlord friendly laws and cash flowing properties. Lots of properties in that price range, but just like everywhere else, inventory is really low, and finding them is the rub. I'm an investor and realtor in Tulsa. I frequently work with investors from out of state. I'm happy to connect and discuss offline.

  • Riley BarclayPro Member
    OP
    Member since 2020 · 15 posts · 5 votes
    5y

    @Andy Vazquez thanks for the info I really appreciate it! I am definitely going to start looking into the area more. With the city growing that much it sounds like a great opportunity for buy and hold

  • Riley BarclayPro Member
    OP
    Member since 2020 · 15 posts · 5 votes
    5y

    @Steve Kerr thanks for the info. From research and traveling around that area it looks like it is really important to have some boots on the ground that really know the area. Thanks for sending over Nathan's info as well

  • Riley BarclayPro Member
    OP
    Member since 2020 · 15 posts · 5 votes
    5y

    @Tom Ostasik thanks for the info I appreciate it. Sounds like inventory everywhere is hard to come by

  • Member since 2017 · 125 posts · 36 votes
    5y

    @Riley Barclay

    You have to have boots on the ground anywhere you plan to invest

  • Investor · California, CA · Member since 2016 · 367 posts · 375 votes
    5y

    I been investing in KC for a couple years now, it used to be pretty easy to find SFR's on the MLS that would pencil out, now it's pretty rare. I'm sure they can be found, but a lot more competitive.

    Understand the demographic of the clientele you will likely get in your price range.  Most homes in that range will be in bad school districts, that isn't necessarily a problem, you just need to be aware of it.  Know what your business model is, and who your target market is.  I like better schools, a bit on the higher end, yields are lower, but I know that, and I'm OK with it.  If your plan is to maximize yields, you'll probably be in rougher areas that can bring some problems with the tenants you are likely to get. 

  • Mike D'ArrigoPro Member
    Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
    5y

    @Riley Barclay Those numbers are very doable for Kansas City. Inventory is very tight however, like it is in many markets. Median prices in KC are up over 10% YOY, so it's not only a good cash flow market but also has good appreciation potential too. 

  • Steven MayBusiness Member
    Real Estate Agent · Kansas City, MO · Member since 2018 · 262 posts · 250 votes
    5y

    We see continue growth and demand here in Kansas City. Price to rent ratios are fantastic here. Keeps the CoC high!

  • Rental Property Investor · Centreville, VA · Member since 2019 · 1k+ posts · 799 votes
    5y

    I would even explore Cleveland and Memphis to check out out of state investments. Roofstock.com provides good investment properties that you can analyze and purchase. Also, I worked with Martel Turnkey to buy a SFH in Cleveland, OH so let me know if you want to connect and chat about the purchase process.

  • San Francisco Bay Area · Member since 2020 · 8 posts · 0 votes
    5y

    @Tim S. @Steve Kerr @Riley Barclay

    Kansas City is definitely looking good the more I research it. It seems to be able to provide solid cash flow, with some possible appreciation. For SFHs in the price range mentioned ($100-125k), what specific neighborhoods would be ideal? I'm thinking growing and improving C/B areas would make most sense.

  • Rental Property Investor · Prairie Village, KS · Member since 2017 · 13 posts · 7 votes
    5y

    Hi @Ian A., some time ago there was a post with a take on KC zip codes.  I keep it on hand and I'll paste it below.  One easy way I narrow down my neighborhoods is by using the neighborhood elementary school's Greatschools rating.  I prefer B/C neighborhoods with 4+ ratings in Greatschools, which I believe will give a bit more appreciation potential.  Spend some time deciding what type of neighborhood would best meet your own goals then most importantly, take action - including putting together the right team members!  Good luck!

    Zip Codes Bigger Pockets Post:

    North of the River Areas:

    64116 – mostly good rental area

    64117 – mostly good rental area

    64118 – good rental area

    64119 – good rental area

    64151 – great area for rentals and flips

    64152 – great area for rentals and flips

    64153 – great area for rentals and flips

    64154 – great area for rentals and flips

    64155 – great area for rentals and flips

    64157 – great area for rentals and flips

    64158 – great area for rentals and flips

    64068 – great area for rentals and flips

    South KC/Grandview/Raytown/Belton area:

    64030 – mostly good rental area

    64134 – mostly good rental area

    64136 – mostly good rental area

    64139 – mostly good rental area

    64138 – mostly good rental area

    64012 - good rental area

    Lee’s summit Area:

    64081 – great area for rentals and flips

    64082 – great area for rentals and flips

    Blue Springs Area:

    64015 – good area for rentals and flips

    64014 – good area for rentals and flips

    Westport/Plaza/Waldo/Brookside area:

    64111 – great area for rentals and flips

    64112 – great area for rentals and flips

    64113 – great area for rentals and flips

    64114 – great area for rentals and flips

    Midtown:

    64109 – both good and bad areas for rentals

    64110 – both good and bad areas for rentals

    Independence Area:

    64052 – mostly bad rental area

    64053 – mostly bad rental area

    64055 – mostly good rental area

    64050 – mostly good rental area

    64056 – mostly good rental area

    64057 – mostly good rental area

    Historic NE areas:

    64124 – both good and bad areas for renting

    64123 – both good and bad areas for renting

    KC Downtown:

    64106 – mostly commercial & condos – great area for rentals and flips

    64108 – mostly commercial & condos – great area for rentals and flips

    Kansas City:

    64131 - Good and Bad, use caution

    64130 – listed in 2009 as the “murder factory” of Kansas City - avoid

    64129 - avoid

    64128 - avoid

    64127 - avoid

    64126 – avoid

  • San Francisco Bay Area · Member since 2020 · 8 posts · 0 votes
    5y

    Thanks for the reply @Steve Kerr. Super helpful!

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