Hey BP of Kansas City!
I was wondering if anyone can provide some insight on the Blue Springs, MO area. I've been looking for sometime now to buy and hold a duplex. This area frequently looks attractive since the properties are reasonably priced and the schools are great, but the rents are incredibly low. Also, the taxes are a little higher than a lot of cities in the metro area, so the numbers never seem to work. I have also been reticent to buy here because I'd like to be closer to the Overland Park/Merriam area, but I'm mostly priced out of that market at this time.
Looking over the past year or so in Blue Springs, the rents have been typically <1% of the purchase price. Does anyone with intimate knowledge of the area have some thoughts - positive or negative - on whether it would be worth purchasing here with the rents being what they are? Any known development projects underway?
Thanks for your help!
@Marissa Carroll we purchase SFR and multis in Blue Springs on a regular basis that hit the 1% rule. You have to act quick or know some wholesalers, but you can definitely hit that goal. There's even a triplex for sale right now with some potential. DM me and I'll see if I can point you in the right direction!
@Logan Freeman Thanks for the input. I do see some that meet the 1% rule, but it would have to be a larger spread than that to meet my cash flow requirements. Usually when I analyze something at 1%, I have negative cash flow. I'm basically trying to see if there are other factors in the area that might make it worth sacrificing cash flow on this first deal.
It's probably worth mentioning that I would be house hacking, which is why I'm more particular about location.
@Marissa Carroll If you are looking to house hack and not pay anything towards the property, I think triplex or even quad would be the route you'll need to go. I'm not sure there are many/any duplexes that you can support completely with just one side.
If you're open to paying part of the rent, then I think you can find some great house hack duplex options all over the metro.
@Matt Pritchard The quick and dirty metric I've been using is one side covering the PITI; that way I know it works when I'm not living there. That being said, the more desirable the area/property, the more I'm willing to contribute to a point.
@Marissa Carroll I think if you can give a little ground on that, you'll have no problem finding a great duplex. Even just a few hundred towards P&I from your side could help you get a better quality investment that has staying power. I have not done a house hack myself, but reading other comments on here I've seen some people regretting the duplex they got because of the quality.
@Matt Pritchard I've been wrestling with that myself - getting a good deal in an acceptable area vs an ok deal in a good deal. Thanks for the input!
@Marissa Carroll it feels like you may be forcing something to work here that may not for you. I would say hold out until you find a deal that works for you. when you find a deal but it doesn't work; you shouldn't be afraid to make an offer that works for you.
Ultimately at the end of the day, we are not in this market to lose money. I live near BS but haven't invested in that market myself. I would say find an area that you are comfortable with and wait for the right deal. Driving for dollars is a really good way to find a property in an area that you like for a price that works for you.
If you are willing to put in some sweat equity, you may be able to get closer to 2% rather than 1%.
I have a duplex out there (two halves actually) pretty close to the 1% but it'd probably make more as a flip.
Was competitive to get it and I paid little more than I wanted but it works. 30 day close 10 inspection. I let the seller keep security deposits and half mo rent and I bought both sides. 25% down and good reserves and agressive agents.
Message me if you want more details
Thanks for the input everyone!