Invest rental property in Kansas City, MO

28 Replies | Kansas City, Missouri

Hi Folks,

Considering buying a rental property in Kansas City, MO recently. Is there anything specifically I need to know? Like how friendly is it for landlord/owner? Any particular area I need to avoid kinda thing? Not living in Kansas City so the more information, the better.

Thanks in advance!

Tony

MO and KS are pretty landlord friendly. The biggest key will be a quality property manager, so vet them very thoroughly. 

The east side has a lot rougher areas (but can still have some good pockets).

@Tony Huang you need to spend a lot of time searching through the forums to learn more about the Kansas City markets.  Set up a keyword search for Kansas City so you can see ongoing conversations about the area.  Finds some local investors and/or investor friendly agents and reach out to them for advise.

If you want to know more about specific areas of Kansas City, check out this forum that I posted several years ago: https://www.biggerpockets.com/forums/48/topics/276...

Good luck investing!

@Tony Huang I agree with Austin. We're out of state investors (first time) , just bought a duplex in KC, MO. We've had a rough go with our first property manager. Vet them like crazy! Good luck in your search! 

@Tony Huang Kansas City is a good investment market but like most larger cities, it has it's good areas and it's bad, so yes, there are plenty of areas to avoid. Unless you want to spend a lot of time learning where the pockets of gentrification are in the inner city within the 435 loop, I would recommend looking at the suburbs outside the loop. With a few exceptions, I like the Independence, Raytown, South Kansas City and Grandview areas. There are a lot of B class neighborhoods in these areas but there are also C Class also. You want to make sure you know the area well. I've been active in KC for several years and would be happy to help if I can.

@Tony Huang there is a ton of info you SHOULD know about going in.  Not simply schools, crime, etc... Ask some of the experienced people for recommendations. Research a lot. Ask around for a good broker or lender. They should be able to help you start putting the pieces together. Good luck! 

Originally posted by @Tony Huang :

@Mike D'Arrigo Hi Mike, I see you also in San Jose. Do you mind PM your contact so we could probably have a further discussion? Thank you!

Tony, I sent you a PM.

Originally posted by @Mike D'Arrigo :

@Tony Huang Kansas City is a good investment market but like most larger cities, it has it's good areas and it's bad, so yes, there are plenty of areas to avoid. Unless you want to spend a lot of time learning where the pockets of gentrification are in the inner city within the 435 loop, I would recommend looking at the suburbs outside the loop. With a few exceptions, I like the Independence, Raytown, South Kansas City and Grandview areas. There are a lot of B class neighborhoods in these areas but there are also C Class also. You want to make sure you know the area well. I've been active in KC for several years and would be happy to help if I can.

Kansas City, Mo is (in my opinion) very land lord friendly.  I have had to do a number of evictions in the past especially when I purchase occupied properties.  It typically take 30-45 days to get the tenant out.  

Stauffer Properties

Looking to get in touch with some wholesalers. I am a Denver resident, but I would like to begin building a portfolio of rentals in KC MO. I still have a lot I need to learn about the different areas. Thanks

I would start by getting a more nuanced view of neighborhoods as some of the best opportunities are in the inner core in historically blighted areas.  I would take generalized zip code information with a grain of salt as many of these areas are seeing rapid change, especially in 64109, 64110, 64131, 64123, 64124, parts of 64127, and 64130. Don't jump feet first into a zip code known for high-crime, but also don't discount it.  With a good property management team, you can find great cash flow with high appreciation potential in many of these areas. 

Do note that across the metro that many cities are starting new programs for

Registration as a landlord

Registration as a rental

And various inspection program either randomly (Kansas City), upon complain (Kansas City), annually (Independence) or between tenants Grandview.

Kansas Does have a law that says if your tenant refuses the city inspection, they can decline inspection.  In Missouri there is no such law and you have to turn back to the 4th Amendment.

Originally posted by @Tony Huang :

Hi Folks,

Considering buying a rental property in Kansas City, MO recently. Is there anything specifically I need to know? Like how friendly is it for landlord/owner? Any particular area I need to avoid kinda thing? Not living in Kansas City so the more information, the better.

Thanks in advance!

Tony

Missouri is generally pretty landlord friendly (here's the MO landlord-tenant law booklet: https://www.ago.mo.gov/docs/default-source/publica...), but in Jackson county, evictions take forever because of the back log (i.e. 2 months, sometimes more). 

For where to buy and not to, I would check out this discussion: https://www.biggerpockets.com/forums/48/topics/276800-kansas-city-missouri-zip-codes

Carley, I’m in KC right now looking at some deals. Id love to chat with you about your experience so far. Could you please let me know if we can talk today.

@Tony Huang New to investing, veteran to Kansas City. Lived here for over 13 years and in many different areas of the city. As tenant and contractor I've been in and out of almost every part of the city. I don't mind offering advice on specific neighborhoods, zips or even particular blocks. KC is very patchy, and a lot can change from block to block. Feel free to PM.

Check with the cities as many require you to get a license and register every property.  Some have inspections of varying degree.  So these need to be factored into your costs as you work your numbers.

Find a good quality property manager and ask them for advice.

Don't go for the super cheap property.  The more expensive the property, the better the area, the easier to manage and make money.

And do look at Chris Dawson's post on areas of the city, it will be helpful.

Kim, which property management company would you recommend?


Originally posted by @Kim Tucker :

Check with the cities as many require you to get a license and register every property.  Some have inspections of varying degree.  So these need to be factored into your costs as you work your numbers.

Find a good quality property manager and ask them for advice.

Don't go for the super cheap property.  The more expensive the property, the better the area, the easier to manage and make money.

And do look at Chris Dawson's post on areas of the city, it will be helpful.

At MAREI we have several who seem to all have good reviews

Home Rental Services

MRE Property Management or McKinnis Real Estate Investments

M&M Property Pros

@Andrew Erdrich - what is your opinion on 64131? Specifically Charlotte Street / Harrison Street off of Bannister Road?

I've heard good things about South Kansas City with the Bannister Federal Complex revitalization, Cerner, and some recent commercial development.