Rental Property Investor · Overland Park, KS · Member since 2015 · 492 posts · 234 votes
I got a couple of questions about this area. There seems to be a lot of supply. Is demand there? If not where in KC? Just curious, I only buy in A/B+ areas.
Rental Property Investor · Lenexa, KS · Member since 2017 · 76 posts · 63 votes
7y
@Dean Attali thanks for reaching out. It's a combination of both. Sometimes I'll find properties that I can lease for 1% of the purchase price with no rehab whatsoever and other times, I'll do a light rehab to hit or exceed the 1%. I do put USB outlets and Nest thermostats in all of my rental properties. It's definitely more a hustle to find the homes vs investing in KCKS / KCMO but I self manage and it's effortless. I would much rather own 25 class A properties than 150 class C/D properties. I'm somewhat conservative with my approach and don't mind owning properties free & clear and have never sold anything.
Kansas City, MO · Member since 2017 · 14 posts · 3 votes
7y
I'm currently under contract to buy my first one (a duplex) over there, Overland Park is a solid A neighborhood which is also very desirable in the KC Metro so it isn't hard to get stuff rented there. Property values and taxes are high which makes it next to impossible to hit double digit returns without leverage, most returns are like 5% to 6% if you are paying for management and if not leveraged.
The rent ranges seem all over the place in OP. Do you know anyone with several rentals in Overland Park or Lees Summit? Which one is better in terms of BRRR's and appreciation?
The rent ranges seem all over the place in OP. Do you know anyone with several rentals in Overland Park or Lees Summit? Which one is better in terms of BRRR's and appreciation?
I do not know anyone with several rentals, just people with a few here and there but I know appreciation is pretty equal between OP and LS really. Those are two solid A neighborhoods, now LS has some areas that are less than A but for the most part it is an A neighborhood area.
Real Estate Broker · Overland Park, KS · Member since 2014 · 94 posts · 51 votes
7y
I've got a single fam, split level 3/2/2 leased at $1580 around 95th & Switzer. You can get a little more or a little less depending on size/condition. Good tenants that pay on time, but you still need to screen well of course.
Is this your only rental in the area? How long have you had it? I'm curious to know what the sweet spot rent range is for the area. Some are well over $2k, which doesn't seem sustainable. Would you say $1,500/m for a 3 bed 2 bath SFH?
Real Estate Broker · Overland Park, KS · Member since 2014 · 94 posts · 51 votes
7y
I've had it for almost 5 years & no issues getting it leased. In decent shape, but nothing fancy. Big finished basement. That's my only rental in OP as I usually go for CF in other areas. I used to do PM & that's pretty average for the area. If you get bigger or further south can certainly get more. 2k for 3/2 isn't going to happen though from my experience unless in nicer areas - Leawood, etc. I leased several around 150th & 69 for around 1700-1800 3/2s. For the more northern areas, 1500 - 1600 is probably about right.
What are your other CF areas? My concern has always been that these areas have such low rent that it can't keep up with repair costs. Plus no appreciation which means no refinance later on. Not to mention the tenants...
Real Estate Broker · Overland Park, KS · Member since 2014 · 94 posts · 51 votes
7y
I like KCK probably the best. I manage my OP one but have a PM for KCK & they do a good job. No major issues in 3.5 years. Very solid CF. My KC mo ones are decent but a few more issues. Although havent had them as long so hopefully will get better. I am very picky about what I buy & has to have very good CF.
Investor · Olathe, KS · Member since 2017 · 123 posts · 99 votes
7y
I have several rentals in the area. 3 bedroom single family, 1000-1300 sq. ft. should get around $1400-1500 in rent. Larger homes with 4 bedrooms should get $1800-1900. I have some half duplexes rented at 1200-1300. Olathe is a little lower rent but still great neighborhoods and appreciation. I use the 1% rule. Johnson county seems to be a little less than 1%. No problem getting the properties filled with good tenants. Condos are great too if you can find them well taken care of with lower HOA dues each month.
Thanks! Looks like $1,500/m is good to use for my analysis. I’m very familiar with KC just not the rent ranges for Olathe and Johnson County. Looks like in today’s market finding a 3 bed 2 bath under $150k isn’t possible. I like rehabs to add value, wait a few years for appreciation then refinance. Get the down payment back. Not gonna get all of it back in good areas.
Rental Property Investor · Toronto · Member since 2018 · 37 posts · 13 votes
7y
@Matt Altrich curious, because I'm also in Johnson County - are you able to find properties with 1% rule that don't require a lot of rehab? Or do you hit the 1% after doing a lot of repairs?
Rental Property Investor · Lenexa, KS · Member since 2017 · 76 posts · 63 votes
7y
@Dean Attali thanks for reaching out. It's a combination of both. Sometimes I'll find properties that I can lease for 1% of the purchase price with no rehab whatsoever and other times, I'll do a light rehab to hit or exceed the 1%. I do put USB outlets and Nest thermostats in all of my rental properties. It's definitely more a hustle to find the homes vs investing in KCKS / KCMO but I self manage and it's effortless. I would much rather own 25 class A properties than 150 class C/D properties. I'm somewhat conservative with my approach and don't mind owning properties free & clear and have never sold anything.
Rental Property Investor · Toronto · Member since 2018 · 37 posts · 13 votes
7y
Interesting approach to add USB and nests. Do you find that you can ask for slightly higher than market rent because of that? Or do you do it more as a nice gesture without seeing a financial benefit?
Usually a little repair is necessary. Paint, carpet, change hardware and fixtures. That’s usually enough to get solid market rent. To me it’s not always about higher rent but making it more desirable to comps in the area. Helps get them rented quicker. If there’s no major repairs I typically get them rented immediately depending on the timeline of the new tenant. Most tenants stay multiple years. There’s a high demand for good, clean properties in the $1000-1500 price range. Hope that helps.
Rental Property Investor · Toronto · Member since 2018 · 37 posts · 13 votes
7y
@Brendon Pishny those are expected in any rental I'd buy anywhere in the world. But I don't seem to be able to find any house that the seller is willing to sell for eg. 150k that would rent for 1500. What zipcodes are you finding that in?
Investor · Olathe, KS · Member since 2017 · 123 posts · 99 votes
7y
@Dean Attali Olathe west of I35 and north Olathe east of I35. Op north of 435 in zip code 66212 and Shawnee west of I35 in zip code 66203 are a few areas. Single family homes are going to tough to hit the 1% rule. I would say to hit 1500 in rent the house would be bought around 175k. Duplexes make the rule more attainable. I have duplexes around 200-250k and each side rents for around 1200. Condos work well too. I have one I bought at 105k a couple years ago. Now it's worth around 125k and I'm getting 1200/month in rent. Just have to watch the HOA fees:) A strategy I'm pursuing now, since full duplexes are hard to come by, is purchasing half a duplex and then contacting the owner for the other side and offering an option to purchase. Either way half duplexes or townhomes are more affordable and still easy to rent in the JoCo market.
Rental Property Investor · Toronto · Member since 2018 · 37 posts · 13 votes
7y
@Brendon Pishny Thanks! Those are all areas I look at every day. I haven't seen any duplexes in the 200k-250k range though, I do make offers in that range but they never get accepted :) Do you have a good source of off market deals where you find these?
Real Estate Agent · Merriam, KS · Member since 2019 · 23 posts · 13 votes
7y
Hey William I'm late to the party on this thread but own a 4 bed 1500 SF rental near downtown OP. Downtown (79-80th & Metcalf / Santa Fe) is really exploding with growth and development right now. I'm at $1700 a month on my place but could get more. Bought it for $135 in 2014, and it just appraised for $220. I would highly recommend anything near downtown. I would imagine it's great for short term rental too but haven't tried that yet.
Real Estate Agent · Merriam, KS · Member since 2019 · 23 posts · 13 votes
7y
@William S. yes was primary residence for 3 years and now rental for 2. Leased up in one weekend of showings in October 2017. Started at $1650 and then gave current tenants a deal by raising only to $1700 at renewal.
Rental Property Investor · Boulder, CO · Member since 2018 · 18 posts · 4 votes
7y
I have a 3/2 in Lees Summit that rents for $1500, I just Brrrr'd it and have a Property Manager that found a tenant pretty quickly. I have not seen any more deals in LS that would work numbers wise. I closed on this November 2018, and between a lease back and rehab a Tenant just moved in Feb 2019.