Investing In Kansas City, MO

15 Replies

Hi everyone & Happy Monday!

I’m looking to purchase my first property and have been researching a bunch and always land back to Kansas City, MO.

If anyone is/has invested in Kansas City, what are some favorable neighborhoods that you have had success in? Is there anything notable that I should keep in mind while I continue to search the area?

Thanks all!! I’m 22 and have enough saved to finally make some moves and think I could grow doing out of state so I can’t wait to finally be able to look into things a bit more seriously.

@Mary Kim what would be the best neighborhood for you depends on your objective and criteria. Have you decided what class of neighborhood and property would be the best fit for your risk/reward criteria? What is your cash flow and COC ROI objective? Until you define these things, it's not really possible to say what neighborhoods make sense other than to rule out rougher, high crime parts of the city. Generally, I would recommend upper C class and B class neighborhoods. There are a lot of solid working class rental neighborhoods in Independence, Raytown, South Kansas City and Grandview. We've been active in Kansas City for about 10 years and focus a lot in these areas. I'd be happy to chat with you and share any insights with you. Feel free to contact me.

@Mike D'Arrigo

Thanks Mike for the info! I see you guys are in California too! I’m in San Diego so trying to see how I can grow outside of our market right now.

So it seems like that’s where I get a bit stuck… I figure out I like the Kansas City market and then I feel like I get a bit stuck? Maybe a little overwhelmed even! I want to figure out how to build my portfolio up in a scaleable way. I think my biggest goal right now would be cash flow rather than coming from an equity standpoint.

How did you get started in the market? Especially being out of state- I’m super curious. Any insight would be super appreciated. Thanks again Mike!

A good rule of thumb is the farther East you go the neighborhood scale decreases. There are a few good pockets for BRRRs and C/C+(80-140K). NE KC(North of Independence Ave), Blue Hills, Ivanhoe, Squier Park/Manheim Park, Blenheim area, and Marlborough area. If you go West of these areas they are B- to A areas but pricey. If you go East of these areas usually they are D/C- areas. KC is tough to navigate but has certain pockets that make sense. 

Hi Mary,

My favorite neighborhoods in the KC metro are Lee's Summit, Blue Springs, Grandview, Belton, Gladstone, Liberty, and Claycomo. With some neighborhoods making it easier to obtain cash flow than others. 

I am also from San Diego and invest from a distance in the KC market. Don't hesitate to reach out if you'd like to chat sometime.

Originally posted by @Mary Kim :

@Andrew Syrios

Thanks for the link Andrew! I see you invest in KS. Are you currently living there or do you do OOS?

 No I live here. Personally, I'm not a huge fan of out of state investing unless your own market is way too expensive or you're buying larger assets. 

@Andrew Syrios

Thanks for sharing. My initial idea to out of state investing is because I’m in San Diego and the housing market here is just crazy right now.

I do think over time it’ll die down, but I’m looking to start investing NOW as I have waited for 1 year to just learn and research etc… I definitely think there is great potential in SD, but I think with the funds I have right now, I could grow a lot faster in a different market. Just based off my research & whatnot!

Originally posted by @Mary Kim :

@Andrew Syrios

Thanks for sharing. My initial idea to out of state investing is because I’m in San Diego and the housing market here is just crazy right now.

I do think over time it’ll die down, but I’m looking to start investing NOW as I have waited for 1 year to just learn and research etc… I definitely think there is great potential in SD, but I think with the funds I have right now, I could grow a lot faster in a different market. Just based off my research & whatnot!

 That makes perfect sense and is one of the times I would recommend investing out of state. San Diego is absurdly expensive!

@Mary Kim I just finished selling off Midwest small portfolio to buy more in San Diego.  San Diego is a great long term market to invest in for appreciation and cashflow even though "initial" cashflow is not easy to come by.  Long term, San Diego is a great place for cashflow with rents nicely appreciating each year.  You can start house hacking here in San Diego and can get a much bigger bang for your buck than investing out of state.  i.e. if you purchase a $200k property out of state you likely have to put down minimum 20% which is $40k versus starting off with a house hack here putting 3.5% down with fha loan and even with an $800k property, such as a duplex your down payment is only $28,000 and you don't have to pay off someone else's mortgage by paying rent. 

in 20s and 30s and 40s, investing in assets that appreciate better over the long term will make one wealthier than cashflow will.

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