Deals not pencling, local knowledge questions for KC

[George Red]

I’ve purchased a few small multi units in the KC area and I’ve been keeping my eyes out for additional opportunities. I’m an OOS investor so I have a few questions I’m hoping leverage local knowledge on.

The further west I go in KC the multi family deals listed on MLS do not pencil out for me and the available rent does not support mortgage/expenses and leave cashflow. Are people buying these for appreciation and not cashflowing them banking on appreciation 3-5 years out?

I’ve also been looking in NorthEast off of Independence for MF and interested in people’s thoughts on the area and appreciation there in the coming years.

Thanks in advance.

[Logan Webb]

@Caleb Brown might be able to answer this the best. I think a lot of bigger multi family deals are sorta over priced right now. At least the ones we are seeing on the MLS. And yeah people are still paying for them knowing they will eventually cashflow, but a lot of it is just based off appreciation.

I source smaller multi family properties off market (2-4 units) and then try and find buyers for them so if you were interested in hopping on a buyers list I'd be happy to send you what I dig up.

I really like NE of Independence. Close to a community college, a popular biking and running trail and outdoor activities, and I think a big hitter is that it's so close to major highway access I-70 as well.