Interest in Manhattan, KS Market

[Robert G.]

Hi Guys,

My business partner and I are prospective out of state real estate investors and have garnered an interest in Manhattan, KS (we've also been keeping an eye on Birmingham, AL / Kansas City, MO). We are both in our mid-20's and have steady careers in finance.

We are interested in purchasing "SFH" throughout this year and are thinking about the usual BRRR method (i.e. buy, rehab, rent, refinance). Looks like plenty of properties are near campus and have 4-6 beds. At this point, we're attempting to get connected to a few realtors who are happy to work with us (vs. owner occupied) buyers and who can give us additional info on neighborhoods, schools and general trends. We've done our fair amount of diligence but understand that realtors serving the area have a much better understanding. 

Shoot me a message if you'd like to connect!

- Robert

[Steven May]

Originally posted by @Robert G.:

Originally posted by @Steven May:

I’d focus more on KC, MO - better appreciation and larger market for tenant pool than Manhattan. 

I'm seeing 5 bedroom houses for sale around ~$200K. Most definitely would cash flow. Would just want to understand rental demand in that market. I'm from Iowa City and a 5 bedroom place could rent for $3k. 

At that price point and that large of a house, you’ll most likely be doing student rental housing due to proximity to Kansas State University. Sure it can be great cash flow but are you interested in rented to 4-6 college students? Then it may be a good fit for you. In that scenario, PM experienced in that rental group would be key.