I would like your opinion where I should invest in my first rental property in Kansas City area. I think Johnson county, KS area would bring me better tenants and appreciation will be more consistent... are there other areas grow significantly in Kansas City metro? Or should try my best to find a good deal in Johnson county ?
Real Estate Broker · Kansas City Metro · Member since 2015 · 2k+ posts · 1k+ votes
6y
Consider Lee's Summit, Blue Springs, Parkville, Liberty - if you are looking for appreciation in a suburb. Also consider Midtown in KCMO. If you want cash flow consider Raytown Independence, Lees Summit, Blue Springs, and KCK. If you can elaborate more on what you are looking for, I can provide a bit more advice.
Real Estate Broker · Kansas City Metro · Member since 2015 · 2k+ posts · 1k+ votes
6y
Consider Lee's Summit, Blue Springs, Parkville, Liberty - if you are looking for appreciation in a suburb. Also consider Midtown in KCMO. If you want cash flow consider Raytown Independence, Lees Summit, Blue Springs, and KCK. If you can elaborate more on what you are looking for, I can provide a bit more advice.
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
6y
It depends on what areas you want. Johnson County is nice but expensive. It is a A/B+ Area. Lee's Summit, Blue Springs, North KC, Liberty are growing and nice but not as expensive as Johnson County. Also Kansas City depending on which part would be a good option. Happy to dive deeper if you want to chat
I am looking to start investing in rental property investment. As it will be my first home for investment purpose, I am looking for single family property, try to get a good tenant ( that’s why I initially was targeting on A/B+ areas) to get foot in the door and start having hands on in rental investment.
In another words.. I am looking for a house locate in a growing area for potential good tenants ( I will manage the property myself). A property that I can do some rehab... my price range is somewhere between 130k-170k and hope to rent for about 1,500
Title Representative · Denver, CO · Member since 2020 · 126 posts · 66 votes
6y
Do you have specific cash flow goals? Will you be using the BP calculators (or alternative) to determine "pure" cash flow so you find a deal that really works. I see you're after reliable tenants, so I'm not going to argue about the area you're targeting, but make sure you can still handle a bad tenant. If your success hinges upon only having/finding great tenants, you may be in for a rough ride.
I ask because my existing rental house actually only brings me $150 "pure cash flow" after I ran it through the BP calcs. It felt like way more, but I wasn't previously saving appropriately for maintenance and capital expenses. $1,600 in rent (ie: risk if a tenant is not in) for $150 in cash flow is not ideal, now that I've got a clear picture of what's actually going on! But it's where I am and I'm OK for now, but future deals will have higher requirements.
I'm just analyzing a BRRRR deal now that may bring $190+ in pure cash flow on a house with rent payments under $800! That's way less risky for me in the case of vacancy. Better return vs risk. compared to the larger more expensive property.
I would like to make about 10% on CooCROI.. and yes you are right... higher rant don’t mean higher cash flow and that’s why I m wondering if I should invest in different areas in Kansas City metro, but I am worried to be stuck in a bad areas and no appreciation over time, no be able to sell and stuck with bad tenants
Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
6y
@Nelson Sbravatti you need to define your criteria more. Is your objective cash flow or appreciation? Which is more important? How much cash flow are you looking for? What kind of cash on cash ROI do you expect? Johnson County is more expensive than Jackson County and will have a lower cash on cash return. If you're trying to maximize your cash on cash ROI, I would be looking more towards areas like Raytown, Independence, South Kansas City and Grandview. These are good working class rental areas that can perform very well. South Kansas City is particularly attractive with the new Cerner headquarters there. Inventory is exceptional slim in most of Johnson and Jackson Counties so there is good appreciation potential in both counties.
Shawnee, KS · Member since 2020 · 5 posts · 3 votes
6y
@Caleb Christopher hello, I’m also located In Kansas City and looking to get into my first house hack/brrrr. I seem to have a really hard time find and evaluating property in general. Do you happen to have any pointers?
Title Representative · Denver, CO · Member since 2020 · 126 posts · 66 votes
6y
@Michael Magnell
From what I understand about WyCo, it can, but it looks like KCMO cash flows better...
WyCo supports flip and forced equity deals relatively well, tho. But the county is so large, it's hard to pin anything down. Police and fire all live out West (Piper) because it's nice there, and homes are $300k+. They're required to live in the county for their jobs, but they're on the fringe where it's cleaner and safer...
@Brianna Reynolds yes! I believe so... is there codes and requirements to pass and get the permit ? Or this is just basically a fee land lords have to pay ?
@Brianna Reynolds yes! I believe so... is there codes and requirements to pass and get the permit ? Or this is just basically a fee land lords have to pay ?
There is a list of rules & regulations to follow. (I'll link it below)
@Brianna Reynolds awesome! And is that just for KCMO or for all KCMO Metro like, independence, Grandview, lee summit etc ... ?
Just Kansas City, Missouri. For example, the properties I manage in Gladstone don't have the same paperwork needed.
my brother mentioned Raytown is now adopting this as well he also said something about if you evict in KC you may have to pay the eviction costs of the person being evicted and Raytown could also adopt that! Do you know anything about the validity of that?
@Brianna Reynolds awesome! And is that just for KCMO or for all KCMO Metro like, independence, Grandview, lee summit etc ... ?
Just Kansas City, Missouri. For example, the properties I manage in Gladstone don't have the same paperwork needed.
my brother mentioned Raytown is now adopting this as well he also said something about if you evict in KC you may have to pay the eviction costs of the person being evicted and Raytown could also adopt that! Do you know anything about the validity of that?
I've spent some time looking in to this and I haven't been able to get a direct answer regarding it. Many of the evictions I have experience with were on the KS side in Overland park, but I am going to keep trying to find out if this is accurate.
Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
5y
@Nelson Sbravatti in my opinion, Jackson County is a better investment market. Prices are more affordable so it therefore cash flows better. Appreciation is also higher in Jackson County right now. Median prices were up a whopping 19.9% in September YOY vs 5.5% in Johnson County. You want to be in the suburbs such as Raytown, Independence, South Kansas City and Grandview and not in the inner city.
@Mike D'Arrigo I agree with you but If you see crimes reports, counties in MO side has soooo much more compared to Johnson county.
I m a newbie but seems the people in the KS side has higher income which makes me think they will be able to afford more expensive rents and be better tenants.