Getting used to the Rental Property Calculator KC MO

[Eilon Shoham]

Hi friends!

I’ve been running some numbers and the added really nicely.

I am an out of state investor in Kansas City MO, and I am based in North Hollywood, CA.

I look at couple properties in ZIP 64130 I heard it’s a C class area.

I wanted to hear your thoughts about the numbers i put together and if you familiar with the area you can share some Pro and Cons.

Thank you fir hanging out here ! 

[Milton Chamberlain]

That region will require some risk mitigation, and would be better suited for a local flipper specializing in those types of properties vs buy and hold OOS IMO. 

I generally look for those regions between A/B and C/D markets. I.E. if you look a few blocks South you hit Marlborough (D market). Directly West of that is Waldo. In BETWEEN Waldo an Marlborough there are currently two quads listed on Campbell. I am going to go check them out for an OOS investor this weekend.

This specific area is primarily large apartment complexes and small multis, with B class SFR subdivisions directly North of that. Waldo Heights Apartments is adjacent to these currently listed quads. It is owned by Landmark Realty, a large San Fran based owner that owns ~6,000 units. This gives additional reassurance that this specific 'fringe' region between Waldo and Marlborough is a sound area to invest IMO. particularly in the long term.

Main issue with the Quads is price: they started at $550 asking in September of last year. They dropped the price 25k 3 times, with it sitting at $475k since January (4 months ago).

Ideally, these 'fringe' regions allow investors to acquire properties at C class prices, but with A/B class tenants/rent values. These regions are where I typically suggest looking if investors main goals are maximizing Cash flow/Cap rate/ COC return