Out of state investor - Wanting to start in Kansas City

33 Replies | Kansas City, Kansas

Hello all,

I have been searching for a good market to start my investing journey and Kansas City is definitely one of the top cities that I've looked at. I want to know how the market is for buy and hold and will be an out of state investor. I have heard mixed reactions from others saying it's not a good market for cash flow and others saying it's great.

Does anyone have more information on this? I would love to hear from people who already invest in the area as will as real estate agents who knows the area best.

Thank you all!

@Yer Xiong Kansas City is still a great market for buy and hold investors. Yes, the market is competitive-but we are still having great success sourcing properties that fit our investment criteria. We are having the best results with buying properties with our investors that need to be rehabbed before renting them out. You need to be careful on where you’re purchasing, having a team on the ground here in KC is very Important. I hope you have success here in KC. If you’d like for me to point you in the right direction, simply DM me!

Originally posted by @Logan Freeman :

@Yer Xiong Kansas City is still a great market for buy and hold investors. Yes, the market is competitive-but we are still having great success sourcing properties that fit our investment criteria. We are having the best results with buying properties with our investors that need to be rehabbed before renting them out. You need to be careful on where you’re purchasing, having a team on the ground here in KC is very Important. I hope you have success here in KC. If you’d like for me to point you in the right direction, simply DM me!

That is great to hear! 

KC is a good place to invest, especially for cash flow. But I always warn people to be very careful with out of state investing. I wrote an article about it a while back that might help: https://www.biggerpockets.com/renewsblog/2014/12/23/investing-out-of-state-essential-items-to-vet/. Good luck!

If you have the funds or can write aggressive offers its good, but might take some time to find the deals. Typically you'll see better value in bigger deals since less people can qualify for them. The 75-150k/door is typically where it's most competitive from what i've seen. The higher grade properties you're probably going to see about 1% for rent (750-1500 for example).

Multifamily (duplex) are selling like hot cakes though, tons of cash get thrown at those fast and they often get bid up. Townhouse/Condos little less competition and you can find decent deals there... SFH more competition from first time home buyer and all cash buyers...

The kansas city market is a good atmosphere, @YERXiong, look at my posts if you want I am still new to investing in the kansas city area and finally closed on my first 2 properties near UMKC a college that is close to the attraction spots . Numbers work just be careful on different areas. 

@Andrew Syrios Thank you for your advice. Your article was a great read and opened my eyes on some things I didn't really think about.

@Matt K. Great information! I appreciate your input. My goal is to get started with multi-family properties. 1-4 units. I am glad you are seeing that multi-family is good in the area.

@Ali Zantout That's great news! Congratulation on closing  on your first 2 properties. I read your posts and connect with you for more information.

Originally posted by @Yer Xiong :

@Austin Fruechting Thank you for your advice! I also love your podcast show. It's incredibly inspiring!

 Thanks! If you have any interest in the Leavenworth & Lansing area (edge of KC) let me know. That's where all my units are at and I can help out there. 

@Yer Xiong As others have mentioned KCMO is getting much more competitive for good deals, especially turnkey. In some cases, turnkey providers themselves are turning toward doing retail flips and putting turnkey business aside. One thing is for sure, ROI is getting squeezed. What are you looking at doing, SFR, small multis? turnkey, or something that needs work?

Originally posted by @Larry F.:

@Yer Xiong As others have mentioned KCMO is getting much more competitive for good deals, especially turnkey. In some cases, turnkey providers themselves are turning toward doing retail flips and putting turnkey business aside. One thing is for sure, ROI is getting squeezed. What are you looking at doing, SFR, small multis? turnkey, or something that needs work?

 Thank you for the information. My main goal is to buy and hold small multi-family properties. 

Originally posted by @Yer Xiong :

@Andrew Syrios Thank you for your advice. Your article was a great read and opened my eyes on some things I didn't really think about.

@Matt K. Great information! I appreciate your input. My goal is to get started with multi-family properties. 1-4 units. I am glad you are seeing that multi-family is good in the area.

@Ali Zantout That's great news! Congratulation on closing  on your first 2 properties. I read your posts and connect with you for more information.

 Thanks Yer! I'm glad you found it helpful!

@Yer Xiong kansas City is much better for cash flow compared to sacramento. You can buy a duplex in kc for 130k that rents for 1300 per month or more, or you can buy a house in north highlands for 210k that rents for 1300 per month. 

Originally posted by @Joshua Ibarra :

Where in Kansas City are you looking to invest and what are you looking to invest in?

Happy to help if I can! 

Hi Joshua, I am mainly looking at Kansas City, Kansas/Missouri and the neighboring cities. I am looking for small multi-family properties, 1-4 units, that can be acquired with a resident loan. I have a partner that lives in Kansas City, KC that will be boots on the ground.

@Yer Xiong Kansas City is currently one of the best cash flow markets in the country. I'm not sure why anyone is telling you otherwise. Although prices have been going up for a solid 2 years, the returns are still very good. Like any market however, you have to buy in the right areas which can be challenging for an out of state investor that doesn't know the neihborhoods and buy the right class of property. My biggest piece of advice is to stay out of low end, inner city neighborhoods. If people are telling you that KC is not a good cash flow market, it's very possible they've bought in bad areas. I've been involved in KC for about 6 years and know it well. I'd be happy to share my insights and perspectives with you.

@Yer Xiong great choice on KCMO. I am a full-time flipper, have some rentals, am an agent and GC. There are tons of great spots of KC to invest. PM me if you want to discuss the market. 

@Kim Tucker Thank you, Kim. I hope to make it ever lasting in KC.

@Dan Krupa That's great to hear. Will definitely need to touch base with you.

@Andrew Syrios I watched you live last Friday on the BRRRR strategy. You made some really good points. It definitely doesn't seem as easy as on paper. Thanks for putting it together and answering the questions. That really helps me as a noobie.

Originally posted by @Yer Xiong :

@Kim Tucker Thank you, Kim. I hope to make it ever lasting in KC.

@Dan Krupa That's great to hear. Will definitely need to touch base with you.

@Andrew Syrios I watched you live last Friday on the BRRRR strategy. You made some really good points. It definitely doesn't seem as easy as on paper. Thanks for putting it together and answering the questions. That really helps me as a noobie.

 Thanks Yer and I'm glad you found that helpful! And again, welcome!