Rental Property Investor · St Louis, MO · Member since 2018 · 2 posts · 0 votes
Hi everyone! I'm an experienced investor who does fix and flips and has a long-term rental portfolio in St Louis. I'd love to expand into the Kansas City market and start building a buy and hold portfolio there. We have family in the area but no current real estate connections so I'm starting from scratch.
We like to do the BRRR strategy. I'd be so grateful for any advice on this market. I'm excited to start expanding and start my research. Thank you in advance for any information you're willing to share. Thanks!
we can't post links but to get a good overview of the Kansas City Market - Google Block Real Estate Market Report - this is a commercial report that tells you the economy where job growth is and much more. It's well worth the cost of your email to learn the market.
Just like St Louis we have urban core, gentrified neighborhoods and the suburbs.
The right neighorhood for you is going to depend on if you want to manage yourself or hire someone and how much hassle. The ncier the house and higher the rent, the lower the returns, but also less turn over, repair and problems.
It might be important to check with each city based on their new laws for landlords if you are looking to BRRRR - so Kansas City just implemented a registration of $20 per landlord, plus another $20 per unit and we don't know how the inspections are going to play out as they can be called for by anyone or randomly. Many "affordable "housing providers are selling out everything they have either to new investors coming into the market or to the tenants themselves.
Independece has a registration and inspection program
Grandview has one that will be between tenants and St Joe is trying to come up wtih something.
Not that registration and inspection shoudl stop you, but knowing the costs up front and how repaired the properties will need to be BEFORE you buy it is kinda important.
Many of the investors who are selling out are doing it because they built their investment model on one set of assumptions and the new regulations implemented changed the assumptions and removed the profit.
We have a lot of great groups that meet here in KC, some are posted here on BP, like the group I manage - Mid-America Association of Real Estate Investors, we are very active in providing networking, education and keeping our members informed of Advocacy issues. And many of our members host smaller events as posted on our website. Hope to see you.
Real Estate Investor · Kansas City, MO · Member since 2012 · 397 posts · 187 votes
7y
KC is a great market @Arielle Morris. Couple things... make sure to to take the time to build a great TEAM. We'd love to help. We also have a great "Bridge Real Estate Investing Meetup" ... lots of resources and people to help.
we can't post links but to get a good overview of the Kansas City Market - Google Block Real Estate Market Report - this is a commercial report that tells you the economy where job growth is and much more. It's well worth the cost of your email to learn the market.
Just like St Louis we have urban core, gentrified neighborhoods and the suburbs.
The right neighorhood for you is going to depend on if you want to manage yourself or hire someone and how much hassle. The ncier the house and higher the rent, the lower the returns, but also less turn over, repair and problems.
It might be important to check with each city based on their new laws for landlords if you are looking to BRRRR - so Kansas City just implemented a registration of $20 per landlord, plus another $20 per unit and we don't know how the inspections are going to play out as they can be called for by anyone or randomly. Many "affordable "housing providers are selling out everything they have either to new investors coming into the market or to the tenants themselves.
Independece has a registration and inspection program
Grandview has one that will be between tenants and St Joe is trying to come up wtih something.
Not that registration and inspection shoudl stop you, but knowing the costs up front and how repaired the properties will need to be BEFORE you buy it is kinda important.
Many of the investors who are selling out are doing it because they built their investment model on one set of assumptions and the new regulations implemented changed the assumptions and removed the profit.
We have a lot of great groups that meet here in KC, some are posted here on BP, like the group I manage - Mid-America Association of Real Estate Investors, we are very active in providing networking, education and keeping our members informed of Advocacy issues. And many of our members host smaller events as posted on our website. Hope to see you.
Rental Property Investor · St Louis, MO · Member since 2018 · 2 posts · 0 votes
7y
Thank you very much Kim Tucker! This is GREAT advice!! I think this will give me a great place to start my research. Do you have a recommended hard money lender or real estate agent I could touch base with?
Flipper/Rehabber · Kansas City, MO · Member since 2011 · 2k+ posts · 712 votes
7y
Arielle, if you can make the 4 hour drive from St Louis and come to the MAREI meeting tomorrow in Overland Park (02/12) there will be 4 or 5 in residence. We have several on the MAREI website in the business directory. You might also seek out Lawrence Hopkins with Longhorn - he lends in KC but is local to St Louis.
At MAREI we have lenders that will lend 100% if your numbers work. Some that want you to have 10 or 20% of the purchase price. Some that want one or two points and others that want 5 - everyone has a different way they lend, so talking to them all is very helpful to find the one that best fits your needs.
I have also found that many of the St Louis Lenders will lend in Kansas City - on the Missouri side, probably not KS, different foreclosure laws there.
Real Estate Broker / General Contractor / Property Manager · Kansas City, MO · Member since 2010 · 395 posts · 425 votes
7y
@Arielle Morris, I'm from St. Louis. What areas there are you investing in? I grew up in Maryland Heights but my parents now live in Town & Country. I usually go back to St. Louis once every couple of months. Maybe we could meet up and talk real estate. Shoot me a PM and let me know.