Kansas City - Wanting to Invest

[Jon Quijas]

Hey All, I am new to the game and currently have two properties in San Jose, Ca, a hoooot real estate market. I reside here and am looking to step it up and buy a third property out of state (San Jose prices have gotten way too high). It would be a long term rental (thinking retirement). Question: what are some of the property mgmt. companies in KC and do you know their cut percentages? Can someone recommend? Looking to connect with a KC mentor. Help appreciated.

[Mike D'Arrigo]

@Jon Quijas as much as I'd love to sell you turn key properties in Kansas City, I can't in good conscience recommend selling your property here in San Jose that's bringing in $600/mth. Although the red hot appreciation we've been seeing for the last several years is starting to cool, this is always a very strong appreciation market. You want to weigh your total long term return from both cash flow and appreciation here vs primarily cash flow in KC. Money is cheap now, I would consider refinancing and pulling some cash out but I probably wouldn't sell the CA property. Given the low cost of money, I don't think it makes sense to pay your mortgage down. When that money is only costing you around 4.75% and you can get 9% plus returns on it why have it sitting in untapped equity? Keep the money working for you!