Rental Property Investor · Lawrence, KS · Member since 2016 · 84 posts · 20 votes
I already know about the "Murder Factory" but have also heard 64127, 64128, 64129, 64109 should be avoided as well. The Kansas City area, especially on the MO side seems so hit or miss in terms of neighborhoods. Can anyone tell me some places that they would really try to avoid?
I get that some of these areas are probably cash flowing well, at least on paper, because houses are so cheap but I'm more interested in equity and appreciation plays. I'm also reticent to invest in highly dysfunctional neighborhoods because many PMs won't even take on your properties in those areas, so you can end up getting stuck with whatever turnkey company seduced you with their cashflow numbers to begin with. Not a good position I want to be in if things don't go well with my properties.
Where are the sweet spots where values can still be had but that are also coveted by solid renters?
Investor · Kansas City, MO · Member since 2014 · 90 posts · 19 votes
10y
In my opinion, anything that is east of Paseo in the midtown area is to be avoided. 64110 and 64109 are hard to generalize because so much is street by street. I will say that even in the last 5 years I've seen incredible improvements in the area by Costco at Gilham and 31st. As far as 64127, I think that is North East Kansas CIty which is also going through some positive changes however at this time, much of NE seems to still be covered in vandalism with dirty yards, broken glass, etc. That isn't to say that this won't improve also in the near future. If one was to invest there, I would suggest investing to flip rather than rent simply because there are some hipsters that are moving into the area especially closer to Cliff Drive and are willing to ride the wave to be able to afford to own a historic home with character. The population of renters at this point seems to be more of low income folks who may or may not be respectful to the property. That is my 2 cents. Good luck with your investing!
Flipper/Rehabber · Kansas City, MO · Member since 2011 · 2k+ posts · 712 votes
10y
The area around Bannister Mall about 87th to 95th just east of I435 is improving with lots of commercial improvements and I would think that housing would be improving around those areas in south KC and Raytown. Also Grandview areas around the International House of Prayer. And Red Bridge south of 435 has always been a good area.
Rule of thumb for you might be - does the area have grocery stores and other shops and places for people to work or easy access to the highway to get to Johnson County or Downtown.
Unfortunately in our urban cores there is a lack of jobs and grocery stores.
Most are reluctant to provide information because many are Realtors and talking about avoiding one area over another could be considered bad.
Rental Property Investor · Kansas City, MO · Member since 2016 · 132 posts · 91 votes
10y
I haven't invested in properties in this area yet, but lived in 64109 (Central Hyde Park) for 15 years, so I'll share my thoughts. Carrie has it right about being around Costco. I think there would be some good deals in North Hyde Park (31st to Armour/Gillham to Troost). MAC properties has renovated nearly all of the large apartment buildings along Armour and they are commanding pretty high rents. I think the adjacent areas would do well, but it is street by street.
Kansas City University of Medicine and Biosciences (near Cliff Drive) that Carrie mentioned is very active in the community and lots of things to improve the area along Independence Avenue. they have master planned a number of projects for the near future, which should add stability in the community. There could be potential in the area, but it seems like a long term play.
The Cerner Campus that Kim references (Bannister Mall) is constructing office buildings at a rapid rate. I happen to work for the Architecture firm doing those projects. I would expect significant growth, based on their published plans in the media. This should be a good area. Another investor mentioned this on one of the forums I read as well.
I'll add the Beacon Hill area in the mix. A lot of high new builds $300 - $750K are bringing this area along and it is very convenient with quick highway access. UMKC's adjacent campus just added a large housing project.
Rental Property Investor · Lawrence, KS · Member since 2016 · 84 posts · 20 votes
10y
Wow! The responses in this thread and the link to a previous thread on the topic (thanks Eric P.!) are worth more than my annual PRO membership. Thank you Carrie, Kim, Eric and Rich! Loving BP.com so far and this community is a huge reason why.