Buying in Kansas City - Whats Better, Turnkey or Direct?

[Mansoor Fazel]

Hi everyone, so a lot has been progressing for me in my investment career. Since my membership I have purchased my second rental and after a few months of cash flowing on both my properties, I decided it was time to expand, but also, move into markets where my dollars would stretch farther. I tried my luck at the Forth Worth \ Crowley Texas area, but was very frustrated after putting in offers on multiple properties on the MLS, getting accepted by 2 and both deals falling through ( 1 for over priced home, would not appraise and the other for finding out only after inspections that one of the tenants was a HOARDER! My business partner and I recently turned out gaze to Kansas City, as its pricing is affordable for our budget and its hopefully not as crazy as Texas was.

My question to you guys is we all understand that turn key companies are a business, and they must make a profit too. Most of that comes from relieving the fears of out of state investors, but to be honest, a good property manager can do the same. So my questions are as follows:

1. Have any of you had success working with a Turn Key Company? and what made you go that route?

2. Do any of you prefer buying direct from the seller and hiring a property manager, and why?

3. What the overall view and "feel" of the market in Kansas right now? I see some investors out there unloading their portfolio, and then I see others buying in droves. Is there a bubble? or is this market too low to be effected by things like that?

Also, does anyone have any good referrals for lenders in Kansas City? inspectors? Realtors?

Any help would be much appreciated!

[Mike D'Arrigo]

@Mansoor Fazel Kansas City is no where near a bubble. KC started recovering from the 2008 crash later than most of the country and still has not reached it's pre crash highs. There's still room for more recovery. Bubbles don't occur unless median home prices outpace median incomes. Kansas City is a highly affordable market. The Midwest is very stable and does not generally see bubbles like more volatile markets such as Phoenix, Las Vegas, Atlanta etc. Feel free to reach out if you'd like more info on Kansas City.