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- Real Estate Broker / General Contractor / Property Manager
- Kansas City, MO
- 422
- Votes |
- 395
- Posts
Kansas City Missouri Zip Codes
One of the questions I get asked a lot by investors who want to invest in Kansas City is, "What zip codes are good to invest in?". Any seasoned investor will tell you that this depends on several factors such as: amount of money to invest, type of tenants, level of risk, and investment strategy.
In an effort to help those who are not familiar with Kansas City but are interested or looking into investing in Kansas City, I have put together a very general overview of the zip codes in and around Kansas City, MO. These are all on the Missouri side, not the Kansas side.
Keep in mind, this is a general overview meant to help guide those who are not familiar with Kansas City. There can be good investments in areas I have labeled bad and there could be bad investments in areas that I have labeled good.
Here is the list:
Highest risk, highest crime, highest turnover areas:
64130 – listed in 2009 as the “murder factory” of Kansas City - avoid
64129 - avoid
64128 - avoid
64127 - avoid
64126 – avoid
Historic NE areas:
64124 – both good and bad areas for renting
64123 – both good and bad areas for renting
KC Downtown:
64106 – mostly commercial & condos – great area for rentals and flips
64108 – mostly commercial & condos – great area for rentals and flips
Midtown:
64109 – both good and bad areas for rentals
64110 – both good and bad areas for rentals
Westport/Plaza/Waldo/Brookside area:
64111 – great area for rentals and flips
64112 – great area for rentals and flips
64113 – great area for rentals and flips
64114 – great area for rentals and flips
South KC/Grandview/Raytown area:
64030 – mostly good rental area
64134 – mostly good rental area
64136 – mostly good rental area
64139 – mostly good rental area
64138 – mostly good rental area
Lee’s summit Area:
64081 – great area for rentals and flips
64082 – great area for rentals and flips
Blue Springs Area:
64015 – good area for rentals and flips
64014 – good area for rentals and flips
Independence Area:
64052 – mostly bad rental area
64053 – mostly bad rental area
64055 – mostly good rental area
64050 – mostly good rental area
64056 – mostly good rental area
64057 – mostly good rental area
North of the River Areas:
64116 – mostly good rental area
64117 – mostly good rental area
64118 – good rental area
64119 – good rental area
64151 – great area for rentals and flips
64152 – great area for rentals and flips
64153 – great area for rentals and flips
64154 – great area for rentals and flips
64155 – great area for rentals and flips
64157 – great area for rentals and flips
64158 – great area for rentals and flips
64068 – great area for rentals and flips
I hope this can help some of you new investors and maybe some seasoned investors as well.
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Broker Missouri (#2014010151) and Kansas (#BR00223287)
- Orenda Real Estate Services
Hello all, so I now have a total of 8 units in Kansas City, Mo. I am constantly having trouble with my property manager. They consistently drop the ball and are charging waaaaaay below market rents. They also never answer my questions when I confront them via email. Let me correct myself, sometimes they will give me a vague response that doesn’t answer my question. Questions like “why haven’t you raised the rents when I specifically told you to raise to market rents as soon as the tenants contract ends!” They constantly back pedal and say we can’t get rents to that price when I see other tenants paying even more than what I’m asking. Example: one of my units in a nicer part of Raytown is section 8 (which shouldn’t be section 8) month to month and pays $765. I’ve consistently said I want him out or raise rents to at least $850 and they can’t seem to do this. I also have a property in a nicer area, near Cerner and when I purchased it, the contract had the rent at $830 a month. It ended on June 1 2018. The contract stated rents will increase to $930. They never raised the rents until 2 weeks ago when I saw that it was still $830. They did not have an explanation for this. The owner of the pm company then tells me it will only get $800 which is market. Which makes no sense as they were already paying $830. I told them it needed to be raised immediately. They told me they could only raise it to $875. I also just closed on a duplex that tenants on each side are paying around $395 a month. I told them several times I wanted to get rents up to market at $650 on each side when the contracts end next month. Instead they renewed the contracts for a year. What the heck right? This goes on and on. I don’t know what to do because I have a contract with them to manage my properties for a year. Can I break the contract? If so, who do I use to manage my properties? I live in California and thought they were good. Apparently not! I’m not rich. I worked 18 hours a day for 7 years and saved for 7 years to buy these. I purchased all these properties within the last 12 months.
I just hired Voepel after switching my current manager. I would think if they have violated your contract in any way you can get out of it. Have them waive the termination fee and let you out. Just keep pressing it.
Thank you for this info! has muched changed since this time?
Amazing information Chris, Thank you !
I invest in Atlanta GA right now and got some long term investments options in KC.
I am wondering what are the reasons people investing in KC?
Thank you
@Marcello Oliveri Man sorry to hear about all the issues you have had with your PM, and this is definitely one thing that scares me. What is the companies name that way others can avoid them. I have been looking everyday for my first property in KC, but haven't found one yet. Good luck and let us know if you end up changing.
PM companies in KC are tough. I always write into the contract that I can terminate with 30 days notice. I actually had such a hard time that I started self-managing my units from CA. I'm going to do a blog post on how to self-manage from 1600 miles away. PM companies just suck at getting the rents to market. Mine told me I couldn't charge over 600, I fired them, and got the rents to 850. So there is a certain amount that you just can't get them to do. The trick on getting those rents up is to rehab with nice finishes, granite countertops, dishwashers, laundry, nice ceiling fans, nice paint. I'm looking for a prospective tenants to see my photos online and make an emotional decision that they want to live there. I'll shoot you a PM with a couple ideas.
For those of you who live out of state. Do you use a boots on the ground type individual to help you evaluate a perspective property?
@Chris Dawson thanks for the awesome info, do you know what the average expected Roi is on a rental there? Someone's been telling me 18 to 20% and that sounds insane
@Robert Thompson An investor friendly realtor from the area is good to have for an out of state investor. When you find a house you wish to investigate more, they can go look at it, send pics, and give you an idea of what needs rehabbed. Then they can submit offers for you and represent you on the purchase.
@Joel Ortiz You might have regularly achieved those roi’s a few years ago. House prices in KC have increased too much to be able to average that high consistently any more, those deals are few and far between, especially for an out of town investor. There is a lot of competition for those deals now. Anyway, that’s my view after watching KC real estate for a few years and also speaking with RE pros there.
@Brett G. Thank you. Do you have any wholesalers you recommend in the area.
Originally posted by @Robert Thompson:
For those of you who live out of state. Do you use a boots on the ground type individual to help you evaluate a perspective property?
vet it through my realtor first, then go for contract, then inspection, then rengoation, then fly out there to inspect/talk to tenants (before inspection period is over).
Originally posted by @Joel Ortiz:
@Chris Dawson thanks for the awesome info, do you know what the average expected Roi is on a rental there? Someone's been telling me 18 to 20% and that sounds insane
When you say ROI how are we calculating that?
value = rent * 12 ÷ roi
Or
Rent = value * roi ÷ 12
Originally posted by @Joel Ortiz:
value = rent * 12 ÷ roi
Or
Rent = value * roi ÷ 12
Im not following this ....
What would a 220k duplex that rents for 2200 mo work out with your equation.
2200*12/220,000= 12%
Originally posted by @Joel Ortiz:
2200*12/220,000= 12%
Why not just use cap rate or cash on cash?
Your way is simialr to cap but doesn't account for expenses...
@Chris Dawson,
Chris, would you still consider this list to be accurate today?
I am new to rei and am interested in investing in the Kansas City area but do not live there. I was looking for an investor friendly contractor in the area and it was like looking for a needle in a hayfield. Could you recommend some one that would do rehabs from estimate to competion
Originally posted by @Matt K.:
Originally posted by @Joel Ortiz:value = rent * 12 ÷ roi
Or
Rent = value * roi ÷ 12
Im not following this ....
What would a 220k duplex that rents for 2200 mo work out with your equation.
Matt, this is basically the same as using a gross rent multiplier to calculate value.
@Chris Dawson what a great post! This one really kicked off my misconception mindset, defining an area as 'good' or 'bad' - as in what I think about a particular area. I was quickly proved wrong, after I applying grades to schools. Not only was this method more accurate and less biased, but it creates a scale-able methodology. Thanks for starting such a great discussion.
- Real Estate Broker / General Contractor / Property Manager
- Kansas City, MO
- 422
- Votes |
- 395
- Posts
@Jamie Jennings I can help you with finding a contractor. Send me a PM.
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Broker Missouri (#2014010151) and Kansas (#BR00223287)
- Orenda Real Estate Services
KCMO is bit easier to research from afar, also lot of the Indy stuff revovles around low properties rent/value wise.
I'd define your target and get the area that best fits your budget/goals..
@Chris Dawson new investor here, any thoughts on 64080, Pleasant Hill south of Independence? Or 66214, Overland Park on the Kansas side? Thx!