New Investor Looking at Springfield and Kansas City Markets​

13 Replies

Hi All. So after trying several ideas in my home state of California none of which will pencil out we are going to start purchasing smaller multi family property in areas of Missouri. I have a family member who invests in several areas in MO and he has done fairly well. We also have quite a bit of family living in the Springfield area (Nixa, Seymour, and Springfield proper) and while we will be looking for a property management company  we could lean on family for cursory drive by's, etc. Our primary focus is on creating cash flow for the long term and I am looking at many smaller multifamily properties that the numbers look great on. Lots of turn key deals in the 125k to 200k range.  Sometimes things aren't always as they seem though. I wanted to reach out to see if anyone has a recommendation for an awesome property management company in the Springfield area as well as the Kansas city area. Also, looking to connect with a local investor (specifically Springfield) who I could ask a bit about any local challenges and any areas to steer clear from. Our plan is to pick up 1-2 small multi family properties a year for the next few years until we get to 10-12 doors and then save up and invest in a larger multi family project. 

Hi @Alex Hill ,

You should try connecting to Voepel Property Management (VPM). I have not personally used them because I am not currently investing, but I have heard good things about them from investors. I used to work with Canopy Road Real Estate, LLC which is owned by the same owner of VPM so my opinion may be slightly bias. I recommend you look up Voepel Property Management and other property management companies in the Kansas City area to compare. Personally, I am a real estate consultant in the Greater Kansas City Region. If you have any questions regarding real estate in Kansas City, feel free to send me a PM. If your primary focus is cash flow then you have come to the right market. Talk with you soon!

Best Regards,

Nathan Roberts

Originally posted by @Alex Hill :

Hi All. So after trying several ideas in my home state of California none of which will pencil out we are going to start purchasing smaller multi family property in areas of Missouri. I have a family member who invests in several areas in MO and he has done fairly well. We also have quite a bit of family living in the Springfield area (Nixa, Seymour, and Springfield proper) and while we will be looking for a property management company  we could lean on family for cursory drive by's, etc. Our primary focus is on creating cash flow for the long term and I am looking at many smaller multifamily properties that the numbers look great on. Lots of turn key deals in the 125k to 200k range.  Sometimes things aren't always as they seem though. I wanted to reach out to see if anyone has a recommendation for an awesome property management company in the Springfield area as well as the Kansas city area. Also, looking to connect with a local investor (specifically Springfield) who I could ask a bit about any local challenges and any areas to steer clear from. Our plan is to pick up 1-2 small multi family properties a year for the next few years until we get to 10-12 doors and then save up and invest in a larger multi family project. 

Im an investor based in LA with 8 units in Kansas City MO. I think its a great market to used the BRRRR strategy. @david pere runs FromMilitarytoMillionaire and invests in Springfield MO.

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@Alex Hill   I've got a boutique Property Management and Realty company in Kansas City, Lotus Key Homes.  We are keeping our door count lower so we can give the best customer service.  We also offer commission discounts to our Investors.   I went to Missouri State in Springfield and also have family there, but don't have a PM connection in that area currently.  I will ask about referrals for you!   LONI

Hello. I am investing in and around Springfield Mo. I have interviewed a few property management companies in Springfield and really like FHS Property Management. I have family that live in Springfield, so I know the city pretty well as I am out there multiple times a year. Reach out if you have any questions!!

For the Springfield Area I second FHS Property Management.  Also some other good ones are The Jacques Company and Dizmang Properties.  We actually have quite a few decent ones in the area..  

Hey Alex, I'm a wholesaler and investor in the Kansas City market, I hold rentals and have worked with a couple different management companies in KC.  I would be happy to help you in anyway. Feel free to reach out and message me!

Originally posted by @Alex Hill :

Hi All. So after trying several ideas in my home state of California none of which will pencil out we are going to start purchasing smaller multi family property in areas of Missouri. I have a family member who invests in several areas in MO and he has done fairly well. We also have quite a bit of family living in the Springfield area (Nixa, Seymour, and Springfield proper) and while we will be looking for a property management company  we could lean on family for cursory drive by's, etc. Our primary focus is on creating cash flow for the long term and I am looking at many smaller multifamily properties that the numbers look great on. Lots of turn key deals in the 125k to 200k range.  Sometimes things aren't always as they seem though. I wanted to reach out to see if anyone has a recommendation for an awesome property management company in the Springfield area as well as the Kansas city area. Also, looking to connect with a local investor (specifically Springfield) who I could ask a bit about any local challenges and any areas to steer clear from. Our plan is to pick up 1-2 small multi family properties a year for the next few years until we get to 10-12 doors and then save up and invest in a larger multi family project. 

1st one is always the hardest. Once you knock that out it only gets easier. As for your strategy it sounds pretty good. There are tons of turnkey markets out there. Many are well represented by sellers & turnkey operators here on BiggerPockets. The most popular markets are

  • Cleveland
  • Toledo
  • Memphis
  • Birmingham
  • KC
  • Indy
  • Detroit

Each of these markets is popular with turnkey investors because of the low barrier to entry, high rental demand & high rent to price ratio. I recommend setting up keyword alerts for each area as they are discussed in the forums daily with advertisements posted in the BiggerPockets marketplace hourly.

One thing to note when looking at the individual markets, you can make or loose money in any market. Don't think that one particular out of state market will shoot you to success or abject failure. It's not really that complicated to buy out of state. It only becomes complicated when investors try to over complicate or over think everything. Whenever you are buying a property out of state you should do a few things to ensure it's as smooth as possible.

  • Don't buy in the roughest neighborhood in the urban core. Pick a solid B-Class suburban area. Perhaps a nice 1950's built bungalow.
  • Always hire a 3rd party property inspector to give you an unbiased feel for the home. The reports are 40-90 pages long and go through the entire house in great detail.
  • Get an appraisal. If your using financing the bank requires this. This is good. The bank isn't going to let you blow their money. They have more skin in the game then you do.
  • Make sure you get clear title. If using a lender this is a non issue. They will make you do this. It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.
  • Make sure your property manager is a licensed real estate brokerage.
  • Understand you can not eliminate all risk, only mitigate it. If you are risk adverse real estate, (especially out of state) is not for you.

Hi.

I'm looking in the 64119 (Shaker Heights area of Kansas City)area. I found a house I'd like to buy, but the realtor didn't respond to my text message (I'm overseas). I'd also like to know, if I get this house, if someone has a PM to recommend.

Thank you.

For Springfield: Drury Property management (417)830-6020. Chris Lock for a realtor contact # 417)773-2075. Use Mirowski for home inspector. Most thorough home inspector company in town. Chris knows the area very well, very much a go getter. If you need a roofer, I highly recommend Roofs for Less, they have prices beat by over 20%. I 2nd what Sylvia said, avoid Gatley or 417 prop, known slumlord and properties are condemnable. Need any other recommendations let me know. Happy Hunting and welcome to the Midwest market.

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