Kansas City Residential Turnkey Recommendations

[Tom Volpe]

Hi BP, 

I am new to the real estate investing world but have spent the last year learning more then I could have imagined through BP.  Just last week I purchased my first investment which was a Turnkey Town home in the Raleigh NC area.  It has been a great learning experience in that it forced me to go through all of the motions in isolating a geography of interest, closing on my first property, financial analysis and now screening tenants. 

Although I may not have optimized my return (176K LP/1.4K Rent) I was able to learn a lot and have what I consider to be a safe first investment.  Now I am looking to develop my RE portfolio with a specific emphasis on cash flow. I have seen a strong consensus that one of the better areas to consider for rent/turnkey operations is in the Kansas City area.  

I was hoping to gain some first hand perspectives/experience from others that have invested in this area.  I am interested in Here are some highlights I am hoping to accomplish: 

- Referrals of RE/PM companies/reviews

- Attesting that this is a promising area for turn key rentals 

- Specific neighborhoods that are attractive in the B-B+ area (what I have found most BP rental investors prefer) 

-Financials: Expected cash on cash return, vacancies, ROI, LP to RP

All thoughts are welcome! 

[William Robison]

Being a turnkey and a hybrid turnkey provider in KC, I would HIGHLY encourage anyone considering a turnkey investment to get on a plane and check it out for themselves.  Even if you dont buy on the trip, you will have received education in the market area, as well as an understanding of the quality of renovation that goes into a property.  

One thing that I think is critical is having the support of an ongoing company that will stand behind the property after it has been tenanted.  A less than good renovation can look great in pictures but could have largely ignored several mechanical issues, or other items that they failed to photograph in the final presentation.  "Lipstick on a pig" wears off.  In our processes, we prepare the property for long term property management and then offer those services to our clients in our mgmt company.

Finally, never take the property class as marketed.  If you are buying a property for tens and tens of thousands of dollars, spend an hour looking at other resources....school ratings, economics of the neighborhood, etc.  We actually use a six metric system that identifies the strengths of a property in our review of a house.

Best of wishes with your real estate investments.