Calling all experienced Kansas City "B Class" Investors

[Dustin Beam]

Hello beautiful people of BP,

I'm looking for advice from investors in KC that have been around awhile, before and after the Great Recession to be exact. I was just moving into KC at the time and not investing, so I don't know the effects it had on rental prices.

So my property now is what I would describe as B class property. Three bed, two bath, pretty good school district, rents around $1200.

What happened to the rental prices of those types of properties during those lean years (2008-2012 or so)?

I would like to work out a "worst case scenario" going forward and would appreciate any help you're willing to give.

[Mike D'Arrigo]

@Dustin Beam whatever happened during the crash of 2008 is not an indication of what could happen in he future. Every economic cycle is different and it is highly unlikely that we will see the same set of factors that created the housing crisis in 2008. I was active in both the Kansas City and Indianapolis markets then and I can tell you that it had no negative effect on rents during that time. Home ownership rates and rents are inversely related. Home ownership rates nationally dropped from around 66% to 62% during that period. All the previous home owners that were displaced through foreclosure became renters, thereby increasing rental demand. Although there was a surge in renters, there was also a surge in rental units due to so many foreclosures being converted to rentals which essentially created an equilibrium between supply and demand.