House hacking in Kansas City - good or bad idea?

[Yoselin Pearce]

Hi there!

I'm a new investor looking to buy my first MFR by the end of this year (woohoo!). The goal is to find a property with great cash flow and house hack it. Because I currently live in California (expensive, not landlord-friendly, etc.), I will be moving to another state that offers lower purchase prices (my max is around $450k). I've been looking all across the country and one of the markets I'd like to learn a little more about is Kansas City, MO.

From an investment standpoint, what would you say are the pros and cons of Kansas City? And do you have any areas you'd recommend I look at? What about areas you'd recommend I stay away from?

I'm also open to hearing any other market recommendations. Other areas I've been looking are Louisville, Cincinnati, and Chattanooga, but as mentioned, I can move anywhere, so the entire country is my oyster. 

Thanks so much!

[Adrienne Green]

Hi @Yoselin Pearce!  I love your ambition and your plan!  As a former Southern Californian who now lives in Chattanooga, I'd say it's worth considering.  Like California, people are really into the outdoors, and there are outdoor activities to do year round- boating, hiking, etc.  There's a ton of natural beauty and protected outdoor spaces here.  There is a lot to do in Chattanooga- museum, aquarium, baseball stadium, theater, downtown shopping, plus Atlanta and Nashville are only 2 hours away.  The weather is pretty mild- snow is a rare occurrence.  If you're worried about missing the beach, the closest areas to drive to are the Florida Panhandle and the Charleston and Savannah areas- Hilton Head Island, Tybee Island, etc.  The TN river and Chickamauga lake are right here, and that's a lot of water fun, too.

Also, the cost of living is SO much lower than in California. $450k goes really far in this market- for a duplex, you'd be hard pressed to find something that expensive.  A quadplex would likely be at the top end of your budget.  And TN has no state income tax!

I'm happy to discuss if you have any questions!