Kansas City market

Rental Property Investor · Dallas, TX · Member since 2013 · 42 posts · 5 votes

Hello all! I'm looking to purchase a duplex in the Kansas City area and am wondering what part of KC is most attractive for both cash flow and appreciation? I've been looking at the suburbs (independence, lees summit) and the city itself (plaza, westport, KU Med.)

For example, I've got my eye on quite a few duplexes in Independence which I can get at $95k and the monthly rent brings in $1400 yet long-term appreciation may be weak.

Any suggestions would be greatly appreciated!

Thx,
Paul~

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Account Closed

Real Estate Investor · Kansas City, MO · Member since 2012 · 85 posts · 19 votes

13y

North is the roughest one to work with. Just bought up a bunch in that area for cheap. A shell of a 8 plex and tax sale SFH's.

You can find better deals and better numbers in SFH's in midtown. I just got a home in Longfellow for 28,500 with a 7k rehab that rents for 1500 a month. 5 bed 2 bath that if i put it on the market now would sell for 100K.

Anyway, duplexes... Nice one by St. luke's for around 100K rents around 1600 i bet. One on gillham for 100k around the same rents. 8 plex in manheim for 150,000, shame it wasn't squire. They will appreciate, but i'm a cash flow kinda guy.

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David Welsh
Involved In Real Estate · Grain Valley, MO · Member since 2012 · 7 posts · 3 votes
13y
If you are looking out east stay in Blue Springs, Grain Valley, and Lees Summit you will garner more rent per unit, and see better long term appreciation.
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Ray Orellano
Real Estate Broker · Leawood, KS · Member since 2013 · 150 posts · 23 votes
13y
There are some great deals around the plaza/ wesport areas....especially hyde park/midtown areas.

The East side of KC can get pretty bad quickly. ..but it also offers high cap rates over 20%. But doesn't offer much equity.

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Paul Nagy
OP
Rental Property Investor · Dallas, TX · Member since 2013 · 42 posts · 5 votes
13y
@Ray I do think the urban core looks enticing and it's top on my list to further look into. I'll reach out to you so that we can touch base and see what's available.

Also, does anyone have any thoughts on Lawrence? Seems attractive at first glance.
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Ray Orellano
Real Estate Broker · Leawood, KS · Member since 2013 · 150 posts · 23 votes
13y
@Paul sounds good, just let me know when your ready.

Sorry, I don't know the Lawrence market, its about 45 miles away. Its a great town with a great school! I would imagine its pretty competitive, but definitely offers High Rents with High Occupancy!
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Steve Hintze
Kansas City, MO · Member since 2013 · 2 posts · 0 votes
13y
Paul:

I have owned properties in the Hyde Park-North Hyde park area for years. Current market prices are good and tenant's are relatively plentiful. Lot's of folks that want to be part of the urban scene. One question why not Lawrence? It would be closer and easier to manage.
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Account Closed
Real Estate Investor · Kansas City, MO · Member since 2012 · 85 posts · 19 votes
13y
North is the roughest one to work with. Just bought up a bunch in that area for cheap. A shell of a 8 plex and tax sale SFH's.

You can find better deals and better numbers in SFH's in midtown. I just got a home in Longfellow for 28,500 with a 7k rehab that rents for 1500 a month. 5 bed 2 bath that if i put it on the market now would sell for 100K.

Anyway, duplexes... Nice one by St. luke's for around 100K rents around 1600 i bet. One on gillham for 100k around the same rents. 8 plex in manheim for 150,000, shame it wasn't squire. They will appreciate, but i'm a cash flow kinda guy.
2 Reply
Christopher Coleman
Involved In Real Estate · Kansas City, MO · Member since 2013 · 90 posts · 9 votes
13y
Hey Paul,
I'm a realtor working with investors in the KC market.
We have some really good luck with the Midtown, Plaza area.

In fact I just toured my best find in months, a move in ready 6plex in central Hyde Park for 145! With nothing it would rent for 650 per unit with a good finish it would be 800 easily.

Deals are there, they just take some searching.
Good luck out there
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Melodee Lucido
Real Estate Investor · OR · Member since 2012 · 390 posts · 133 votes
13y
Hey guys,

I am talking with a seller of a duplex near the KCK community college. Is this a decent area. He's considering doing some seller financing.

I am out of area so your opinion would be helpful. Thanks!
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Jameson Wildwood
Chapel Hill, NC · Member since 2013 · 53 posts · 18 votes
13y
I've started looking at Kansas City as a great potential place for multi-family investing. Are there any other's that are currently in the market? Any current insights?
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Engelo RumoraBusiness Member
Investor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
13y
Hi Jameson,

There are decent multifamily deals here but there is much more variety in St Louis.

I am based in Kansas City so please feel free to email me at [email protected]

I could potentially assist with putting you in contact with the right people here on the ground.

Thanks and have a great day.
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David Klick
Homeowner · Overland Park, KS · Member since 2013 · 20 posts · 11 votes
13y
@ Kyler - Are you still active in KC? I'd be curious to meet and discuss what stratagies have been working for you and glean a little of your insight here.

Look forward to getting caught up soon.
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Account Closed
Real Estate Investor · Kansas City, MO · Member since 2012 · 85 posts · 19 votes
12y
Love the winter, investors usually don't buy during this time. The miserable cold and these props sit and go for low.

Lots of good C class duplexes for under 40,000, cash flow $1,000, basic numbers. You all get the idea :)

Have my eye on a Victorian duplex in the one of the first places that they installed Google fiber, for 50,000, repairs 30,000, ARV 150,000. Comps are solid historic homes surrounding.

I am still very active, always game to network with new people. HMU@David Klick
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William Robison
Real Estate Consultant · Kansas City, MO · Member since 2013 · 388 posts · 200 votes
12y
@Jameson Wildwood

The Kansas City market is a great place for investments, etiher multi-family or even the buy and hold SFH market. As typical, we have somewhat of a converse relationship with cash flow vs appreciation. In certain neighborhoods, cash flow can be huge, but expenses can be challenging and appreciation will be low. In the suburbs, properties still cash flow, but appreciation can be very good. Weve already seen quite a bit of rebound in values for many of our multi-family market areas. Deals can be found with a good hard look and patience.

In one of my BP articles that Ive written I discuss the five year outlook for an investment property. If one really applies this rule, the suburban properties with a higher B Property grade will typically beat out the rest.

All the best with your investments.
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William Robison
Real Estate Consultant · Kansas City, MO · Member since 2013 · 388 posts · 200 votes
12y
@Paul Nagy

I think you are correct in your estimations of the areas. Independence can be a good cash flow area, largely dependent upoon which part of Independence. There is a very wide range within that market area, so be sure to get some expert advice on the area before making an investment.

Regarding midtown (KU, Westport, etc.), these can be good prospects also. Its controlled by almost a block by block analysis to find good investments that will cash flow and will have long term appeal for appreciation into the future.

For the further suburbs, there are some very good opportunities with very good appreciation and moderate cash flow.

Due diligence is key.

All the best.
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Jameson Wildwood
Chapel Hill, NC · Member since 2013 · 53 posts · 18 votes
12y
Since I last posted here, I ended up going house shopping in KCMO and picked up two single family homes in Raytown area of KCMO. So far they are cash flowing very well, we've got tenants in both of them.

3/1.5 $37,900 - Rents for $650/mo

4/2 $47,500 - Rents for $825

I'm getting these settled and all the initial set up/make-ready costs paid for, and then I'll probably be in the market for a KCMO duplex in a few months.
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Matt Willman
Independence, MO · Member since 2014 · 6 posts · 4 votes
12y
Does anyone have experience in northern Independence, more specifically the areas around 24 Highway? Values seem to increase as you move east, from $30k-$40k on the west side up to $120k+ on the east.

I live towards the east end and ideally I'd find properties in that area, but the realities of my current financing mean I'll probably have to start in the lower end. If anyone is active in the area and would like to discuss leads/deals/etc. please let me know.
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Anthony GaydenPro Member
Rental Property Investor · Omaha, NE · Member since 2014 · 2k+ posts · 3k+ votes
12y
I'm originally from KCK, and hoping to eventually invest there again. There are a ton of cheap properties there that are perfect for the buy and hold/cash flow investor. You won't see much appreciation, but the cash will flow.
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William Robison
Real Estate Consultant · Kansas City, MO · Member since 2013 · 388 posts · 200 votes
12y
Hello @Matt Willman

I believe that you are signed up to Bigger Pockets Kansas City Meetup. Please find me and lets talk about East Jackson. I live north, but 95% of my business is in this area.

All the best and hope to see you on Tuesday.
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Matt Willman
Independence, MO · Member since 2014 · 6 posts · 4 votes
12y
@William Robison

Thanks for the reply. I'm glad to hear it's a workable area and to have come across an expert in my area! I look forward to talking with you on Tuesday night.
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Richard F.
Real Estate Investor · Henderson, NV · Member since 2011 · 87 posts · 22 votes
12y
Originally posted by @Account Closed:
Love the winter, investors usually don't buy during this time. The miserable cold and these props sit and go for low.

Kyler, I have done the exact same thing. Its a great strategy if you don't mind getting cold and looking around! :)
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Account Closed
Real Estate Investor · Kansas City, MO · Member since 2012 · 85 posts · 19 votes
12y
Hey Richard,

Was a slow one for me this winter, got a couple good deals off the MLS. But, sadly they are getting fewer and far between in the areas I like. Back to direct marketing and tax sales!
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William Sumnicht
Investor · Kansas City, MO · Member since 2014 · 52 posts · 9 votes
12y
Originally posted by @Account Closed:
I just got a home in Longfellow for 28,500 with a 7k rehab that rents for 1500 a month. 5 bed 2 bath

I mean, I know Longfellow prices are lower and all. But whoa.
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Account Closed
Real Estate Investor · Kansas City, MO · Member since 2012 · 85 posts · 19 votes
12y
@William Sumnicht

They had been low, was lucky and got my house before prices went up again. I'm at 2815 Campbell, I was able to get 2801 Harrison behind me for 15,000. Rehab will be more than the one i mentioned above, lol. Will be into it for around 70,000 but will be worth 150 to 180 when done. Beacon hill is driving up all the local prices of homes.
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Engelo RumoraBusiness Member
Investor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
12y
Originally posted by @Account Closed:
Hey Richard,

Was a slow one for me this winter, got a couple good deals off the MLS. But, sadly they are getting fewer and far between in the areas I like. Back to direct marketing and tax sales!

I feel like the KC market has been heating up quite a bit starting around 8 weeks ago.

Lots of activity from institutional buyers.

Still some great values around.

Thanks
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Oliver Trojahn
Kansas City, MO · Member since 2008 · 143 posts · 41 votes
12y
When is everyone meeting again?
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