Kansas City MO rentals

[Account Closed]

Dos anyone have much experience with buying rehabbed properties in KC MO just east of 71 between downtown and Banister? I am interested in buy and hold for long term rentals, is this a viable endeavors?

[William Robison]

Hello Pablo.  I am a bit biased in opinion, but I have partners that have experience in the area that you identified.  I am born and raised in KC.  Ive spent the last 16 years in real estate here.  During the downturn, I was a foreclosure agent, and most of my work was in areas similar to what you have mentioned.  For the last 6 years, I have developed a company that helps out of state investors with A and B class properties in the suburbs of KC.  My goal is not to persuade you in any direction, but rather provide you with a bit of education about the market area, whether that is KC, or another area.  East of Hwy 71 is initially an attractive area because of price point and the allure of higher cap rates.  However, the amount of risk taken on by such properties typically doesnt ultimately yield such returns as expected.  Property risk, lack of appreciation, crime risks, lack of appeal, all lead to investments that need far more input from the owner than a more traditional investment area.  I wrote an e-book a couple of years ago that helped investors understand how to review a market area and analyze those risks.  Our company GM, just sold a dozen and a half of these properties, that he was initially drawn toward because of returns, but finally escaped because of a lack of the same.  Hope that helps.  Consider all elements of the investment before diving in.