Hey @Shevonne Green, the market here in Kansas City is great! Things seem to be more stable here than on the coasts and other parts of the U.S. My opinion may be a bit biased because I was born and raised here but I think there's lots of opportunities for investors in this market.
I've been working with out of state investors since 2013 and they seem to love it here! You can get a lot of bang for your buck, the cost of living is reasonably low and you can get to many parts of the surrounding metropolitan areas within 30 to 45 minutes.
As far as investing and the actual #'s go, I favor single-family homes over multifamily & commercial but there are certainly opportunities for both. For someone out of state or local wanting to get in the game, (without splitting too many hairs) they can fairly easily find a solid SFH in a B-Class area with an ARV between $80,000 and $120,000 and win all day long on that type of deal. By using leverage through traditional financing right out of the gate with 20% or more down payment -OR- through the use of private funds then refinancing out through the BRRR strategy, a new or seasoned investor could likely cash flow a couple hundred bucks a month (after all of the expenses & management fees, etc) and see a nice 13% to 20% OR MORE cash-on-cash return. It may not necessarily be a home run type of a deal but it gets you on base and active in the game... That's pretty darn sweet to me! ;)
For anyone interested in out of state investing or Kansas City real estate, you need to look a bit deeper here. :)
@Brandon McBride I just started investing in Memphis, and have been happy so far. Bought my first property in a B neighborhood for $75K with about $20K in rehab.
@Brandon McBride I just started investing in Memphis, and have been happy so far. Bought my first property in a B neighborhood for $75K with about $20K in rehab.
Hi Danielle,
Have you refinanced yet? How are the rental properties out there? Any trouble finding tenants or a PM?
@Jonathan Luna i'm still in the middle of rehab so I haven't refinanced yet. It wasn't hard to find a PM - it's yet to be seen how difficult it is to rent, but Memphis is a heavy rental area, so I don't expect it to be difficult as long as it's priced right.
@Jonathan Luna i'm still in the middle of rehab so I haven't refinanced yet. It wasn't hard to find a PM - it's yet to be seen how difficult it is to rent, but Memphis is a heavy rental area, so I don't expect it to be difficult as long as it's priced right.
If I may ask why Memphis? Why not another part of CA seeing as how you live in SD?
@Jonathan Luna I may eventually move into other parts of CA, specifically Coachella valley, but for now the prices there are pretty high as well. I went with Memphis because it has strong cash flow opportunities. I own a couple properties in San Diego and they have good appreciation but no cash flow. Memphis was a good offset to that for diversification purposes.
@Jonathan Luna I may eventually move into other parts of CA, specifically Coachella valley, but for now the prices there are pretty high as well. I went with Memphis because it has strong cash flow opportunities. I own a couple properties in San Diego and they have good appreciation but no cash flow. Memphis was a good offset to that for diversification purposes.
@Danielle Wolter
Other than the Coachella festival and Stage Coach what makes Coachella Valley a good place to invest?
@Jonathan Luna I did a lot of research on cities with good cash flow. I mainly looked at tertiary markets where a recession is less likely to have a significant impact, and properties aren't too overvalued. I also had spent some time in Memphis, so was somewhat familiar with the area.
Seems like the Carolinas are the most popular places around here. Georgia is another place with gorgeous houses that are relatively cheap when compared to the Northeast.
@Sheila Arca I'm not an expert as I am still on my first OOS deal, but I am looking at areas like Colonial Acres, Whitehaven, the Eastern parts of Raleigh personally. Bartlett, Cordova, Collierville and Germantown are nicer areas, but it's harder to get good cash flow deals. Midtown and Cooper Young are hip areas that I would love to find a property in, but it's hard to come by good deals in those areas. But it's all going to depend on your goals.
@Danielle Wolter That's great about your Memphis property! Congrats to you! How'd you acquire the property and most importantly how'd you manage repairs? Would love to hear about your experience. Cheers!