Topeka Kansas investing

General Landlording & Rental Properties
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Topeka Kansas investing

Alec Davis
Flipper/Rehabber · Brea, CA · Member since 2016 · 13 posts · 5 votes

Hello.  I am a California based investor looking into out of state markets to purchase rentals.

I've never invested out of state before, but I want to start growing my net worth and really getting into rental investing.  All My investments thus far have been fix & flips in California.  I came across some areas in Kansas I liked including Topeka and I was looking for some more insight from some property managers or investors in the area about the rental market if possible. 

The housing market is priced relatively low, room for investments around town.  I've seen some real beat up homes and some really nice looking ones, all are priced well from what I can see.  Rents for 3 or 4 beds can be around $800 and $1000 per month depending on the property of course which makes rent to mortgage ratio pretty solid.  Topeka seems to have a good population density...

Are there any rental investors or maybe some agents in Topeka who would be willing to give some advice on the rental market out there?  Any positives or negatives would be welcomed.  Also if there are any insights on having a good property management out there who understands how to work with an out of state owner.  As I mentioned before, I have never invested out of state before so I am just trying to gather some good info before taking any action.  Some of these deals would  need rehabbing prior to putting a renter in there, I'd be interested in chatting with someone about some good companies / contractors...

Thanks in advance!

-Alec

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Jacob Sampson
Investor · Topeka, KS · Member since 2015 · 1k+ posts · 1k+ votes
6y

@Dave Clauson is correct.  You buy in Topeka for cash flow.  If you don't have that you don't have anything because there is no real long term appreciation.  We purchased a 3 bed 1 bath home in a reasonable part of town for 40k.  The last time it sold was 20 years previous for the same 40k price.

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  • Account Closed
    Specialist · Dallas, TX · Member since 2017 · 368 posts · 102 votes
    6y

    @Alec Davis Out of state investing can be tricky if you don't know the market. I have had the best experiences when I am able to set foot in the area and develop a plan that leads to the success and security of my investments. When your putting money into an area that you are unfamiliar with you need to know what the effect of that investment will be on the community. As for Topeka, it's a solid place to spend some money, but there is a lot of development that needs to happen in order to drive the rental prices to grow more steadily. If you want to talk more about our investments in that area, I am free to connect. 

    1Reply
  • Dave Clauson
    Real Estate Investor · Lawrence, KS · Member since 2016 · 55 posts · 35 votes
    6y

    Alec, I own a number of properties in Topeka. It's a great place for cash flow but not so much for appreciation. If you own a well-maintained property in a good area of town, you'll have no problem keeping it rented. But there are definitely areas I would never invest in, especially from out of state. I can recommend a good PM if you message me.

    Dave

    1Reply
  • Alec Davis
    OP
    Flipper/Rehabber · Brea, CA · Member since 2016 · 13 posts · 5 votes
    6y

    I appreciate the responses & I have enjoyed connecting with those who commented on this! 

    I am planning to go in person to Topeka soon and will be meeting up with people in direct correlation with my plans for rental purchasing. 

    I will need some contacts for property management, contractors & handymen.  The rentals I will be looking to purchase will more than likely have some work needed and I will obviously need on going maintenance as time goes on.  I am searching and calling some now, but if there are any recommendations it would be much appreciated! If you are a PM or contractor in the area I'm happy to speak with you as well!

    If you are a new/experienced investor and are also interested in Topeka, feel free to send me a message and I would be happy to keep you updated on my progress in this new area!

    1Reply
  • Jacob Sampson
    Investor · Topeka, KS · Member since 2015 · 1k+ posts · 1k+ votes
    6y

    @Dave Clauson is correct.  You buy in Topeka for cash flow.  If you don't have that you don't have anything because there is no real long term appreciation.  We purchased a 3 bed 1 bath home in a reasonable part of town for 40k.  The last time it sold was 20 years previous for the same 40k price.

    2Reply
  • Jake Moran
    Rental Property Investor · Tallahassee, FL · Member since 2017 · 38 posts · 15 votes
    4y

    Curious whether y'all still feel the same about appreciation recently? Realtor.com just listed the hottest markets and Topeka was #3. For those actively investing there, have things seemed different lately?

    https://www.realtor.com/research/january-2022-hottest-housing-markets/

    0Reply
  • John RinggoldBusiness Member
    Real Estate Agent · Topeka Kansas · Member since 2020 · 79 posts · 47 votes
    4y

    R.com may note us as a hot market which is great for sellers getting the opportunity to capitalize on the investment of home ownership, however, buyers are discouraged as they continue to write offer after offer and continue to miss out.  My last listing had seven offers and only one won the bid... that is six buyers still searching for a home that doesn't exist.

    What we are seeing, and I assume many areas across the country are seeing, is potential sellers would love to sell and make a move, but they can't find a home to buy because seller's aren't putting their homes on the market because they can't find a home to buy!  It's a vicious circle!

    Topeka has also been noted as in the top cities to currently have the fewest listings.  https://www.realtor.com/news/t...

    With fewer listings, prices continue to climb as the majority of properties listed are still getting multiple offers well over asking price.  As these homes are used as comps for the appraisal down the street, the values keep increasing.

    Topeka has a population of about 126,000 with 56% of residences being owner occupied.

    As of this morning, Topeka has 72 active single family homes for sale in the county.  In February 2021 this number was 81 and in 2020 there were 231!

    Buyer's with FHA or VA loan's are struggling to win bids as the majority of the offers we have received lately have usually included at least one reasonable cash offer. 20.2% of the sales in 2021 were cash and 55.8% were sold with conventional financing.

    With the promise of increasing interest rates, we feel it's a great time for investors looking to get out to cash in on their equity while home values are high!  

    [email protected]785-806-2711
    Team Ringgold @ KW One Legacy Partners4.8156 Reviews
    WebsiteView Page
    2Reply
  • Jake Moran
    Rental Property Investor · Tallahassee, FL · Member since 2017 · 38 posts · 15 votes
    4y

    Very interesting! I hadn't thought about the supply being so low that it is potentially making the market look hotter than it really is. What a fascinating time we're in.

    1Reply
  • Anjelica Pearson
    Member since 2021 · 11 posts · 4 votes
    4y
    Quote from @John Ringgold:

    R.com may note us as a hot market which is great for sellers getting the opportunity to capitalize on the investment of home ownership, however, buyers are discouraged as they continue to write offer after offer and continue to miss out.  My last listing had seven offers and only one won the bid... that is six buyers still searching for a home that doesn't exist.

    What we are seeing, and I assume many areas across the country are seeing, is potential sellers would love to sell and make a move, but they can't find a home to buy because seller's aren't putting their homes on the market because they can't find a home to buy!  It's a vicious circle!

    Topeka has also been noted as in the top cities to currently have the fewest listings.  https://www.realtor.com/news/t...

    With fewer listings, prices continue to climb as the majority of properties listed are still getting multiple offers well over asking price.  As these homes are used as comps for the appraisal down the street, the values keep increasing.

    Topeka has a population of about 126,000 with 56% of residences being owner occupied.

    As of this morning, Topeka has 72 active single family homes for sale in the county.  In February 2021 this number was 81 and in 2020 there were 231!

    Buyer's with FHA or VA loan's are struggling to win bids as the majority of the offers we have received lately have usually included at least one reasonable cash offer. 20.2% of the sales in 2021 were cash and 55.8% were sold with conventional financing.

    With the promise of increasing interest rates, we feel it's a great time for investors looking to get out to cash in on their equity while home values are high!  


     Great market insight. I am also an investor in Topeka, Kansas. ( I believe I purchased a property from you and your client in Spring 2020!) 

    0Reply
  • John RinggoldBusiness Member
    Real Estate Agent · Topeka Kansas · Member since 2020 · 79 posts · 47 votes
    4y

    yes Angelica!  The house on Clay!  That was a nice opportunity,  I hope it's working out for you. :)

    [email protected]785-806-2711
    Team Ringgold @ KW One Legacy Partners4.8156 Reviews
    WebsiteView Page
    0Reply
  • Anjelica Pearson
    Member since 2021 · 11 posts · 4 votes
    4y

    @John Ringgold it was my first house hack! Now it is fully rented and I am hunting for the next deal!

    1Reply
  • Adam Simone
    Topeka, KS · Member since 2021 · 2 posts · 2 votes
    4y

    Great insight @John Ringgold. There are definitely some areas of Topeka I would not invest in if your hoping for appreciation long term but as of now prices are crazy all over town. Like you mentioned there just isn't much available. 

    1Reply
  • Morgan McRae
    Wholesaler · Kansas City, MO · Member since 2020 · 14 posts · 3 votes
    4y

    This is a great thread to follow here. I have a goal to purchase my first rental investment property sometime in 2023. I've been pretty successful at scouting off market SFHs for investment teams in both KC and Topeka. At this point, I'm ready to take on an off-market SFH as a rental property investment.

    I'm toying with three markets, trying to find the best fit. That's how I came across this article. I was born and raised in Topeka, so naturally it's appealing to me. I'm comparing the rental investment landscape across Kansas City, St. Louis, and Topeka. Each market obviously its pros or cons, but I'm partial to Topeka since I know the area. 


    Would any of the active investors in Topeka be willing to message me regarding areas of town where they've had the most success? I have several ideas from living there, but would be curious if I'm missing something. I don't necessarily care about appreciation of the house, since I plan to hold long term, and utilize the BRRRR method to create some cashflow. Thanks in advance.

    0Reply
  • John RinggoldBusiness Member
    Real Estate Agent · Topeka Kansas · Member since 2020 · 79 posts · 47 votes
    4y

    Sending you a DM now @Morgan McRae

    [email protected]785-806-2711
    Team Ringgold @ KW One Legacy Partners4.8156 Reviews
    WebsiteView Page
    0Reply
  • Barbara Williams
    Member since 2023 · 3 posts · 0 votes
    3y

    Not yet

    0Reply
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