Which is better: Springfield, MO or Kansas City, MO

Question

Hi all,

I'm currently living in Seattle, WA but am looking to make a move back to my home state, Missouri. I plan to purchase a four-plex and use that as a jumping off point but I am not sure where to go. I want to move to a city that will allow for the best opportunities regarding REI. I am looking into Springfield or Kansas City and I was wondering if anyone has any advice on either. What are the pros and cons of choosing one over the other? Any thoughts or ideas would be greatly appreciated!

David Pere · Answer

Account Closed I, on the other hand, invest in Springfield, but have looked at KC a little too. I own 13 units in Springfield so far, and don't have many complaints at all!

Briana Bean · Answer

Hey Account Closed,

My husband and I live in Springfield, MO. I won't profess to be an expert, because we are new to real estate investing. However, I have talked to many other local real estate investors about their success.  All of whom said their biggest regret was not starting sooner. In fact, Springfield made #8 in a Forbes article on where to invest in housing. I will say right now, the market is extremely competitive as it is currently a seller's market. You definitely need to be aggressive or creative in finding a house.  Vacancy rate is extremely low here. We haven't had any problems finding tenants.

Briana Bean

Mike D'Arrigo · Answer

Account Closed I don't know the Springfield market well but I do know Kansas City very well. At the 60K foot level, I would say that Kansas City is the better of the two. It's a larger market with a diverse employer and industry base and has strong job and population growth trends.

Brent Kiger · Answer

Account Closed Hi Andrew, I only have experience dealing with the KC market. I have looked at commercial multi family in Springfield, but never done a deal there. So unfortunately I can only speak to the KC market. I like KC because the size is great and still allows for good growth potential while still cash flowing well.

I’m sure you’d cash flow just fine in Springfield though because based on what I’ve seen, the prices are slightly less per door.

Anyways, I realize that’s a great answer, but if you have any specific questions about the KC market, feel free to reach out to me anytime. I’m a buy and hold investor, I don’t sell anything or do any flips. So if you have a buy and hold question, I’d be happy to try to assist.

Lee Ripma · Answer

You make either location work. Where do you want to live? What are your long term goals? Which city is better for you long term? Is there a submarket you'd like to live in within either? Are there 4plexes in that submarket? I think it's all about what is best for you and your goals!

Michael Niemeier · Answer

I've spent a considerable amount of time in both cities. You said as a jumping off point which makes me think you would appreciate the support from Bp that KC would give you there are quite a few members active in KC. If you're interested in renting to college kids springfield is a fine option there weren't nearly as many destructive parties down there as I see in warrensburg on the weekends I attribute it to the agriculture focus of the school farm kids tend to work on the weekends. Just my two cents.

Greg Downey · Answer

Account Closed, simply picking up a 4-plex in Springfield is no simple task.  I would say good luck finding one.  I don't know KCMO as well, but just by sheer size, you might have better luck up there picking up a 4-plex.

Chris Dawson · Answer

Account Closed I was born in Springfield and I still spend a lot of time down there.  I would have to agree with Lee Ripma on this one.  You can do very well investing in either city.  Heck, you can live in one city and invest in the other!

What are your primary investing goals?  Are you interested in strictly multi family?  How about vacation properties?  Table Rock Lake is only 30 minutes from Springfield and it opens up an entirely different type of REI that you won't find in KC.  Are you buying long term or flipping?  What price ranges are you wanting to target?  Kansas City has a larger middle class percentage than Springfield.  Kansas City is more urban and Springfield is more rural.  Springfield is in the "Bible Belt".  Kansas City is not.

All of these things you need to consider when you are not only choosing were to invest but also where you want to live.  In the end, you can be successful in either city; it all depends on what you want to do!

Which is better: Springfield, MO or Kansas City, MO

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