Introduction!/Where to invest?

Question

Hi Everyone! I wanted to introduce myself! I currently live just west of Steamboat Springs, CO but I am looking at other markets to invest in since my market has a higher barrier to entry. I would love to invest here at some point in time. I am currently in the saving and education stage of my investing career and my current goal is to save $60k by the end of 2021. In the mean time I am just learning and trying to figure out a good market to start with.

A little background on my education. My traditional education is in accounting. I hold a master's in accounting and work for a CPA firm in Steamboat. I don't have a CPA license. In addition to that I manage 30 rental properties ranging from 1 & 2 bedroom condos to 3 bed town homes.

I grew up in Lawrence, KS and then lived in Kansas City for a number of years with my wife. Since I have some knowledge of the area this might be a great starting place for my investments. I'm looking at buy and hold rental properties with strong cash flow and steady growth in appreciation . Since I wont be there I will be using a property manager.

My main problem right now is trying to figure out a sub market. I'm looking at properties that are $150K or less preferably closer to $100k.

I am researching a number of factors including: school ratings, crime rates, job growth, population growth, etc.

I've got some numbers and ROI's in mind but I wanted to first introduce myself here and see if anyone had a decent idea on a submarket of KC.

I'm excited to learn more about this investing path and appreciate all the help I can get.

Thanks!

Logan

Lee Ripma · Answer

@Logan Marienau

I'm big on data. I target areas where the median household income is between 27k and 50k. That's a perfect spot for affordable B and C class rentals. You can get up into the 50-60 range but you want to be careful going higher than that or prices will be very high. I own in North Kansas City, Liberty, Gladstone, and HNE. I like Grandview and Belton but I haven't ventured that far south of the river yet.

Mike D'Arrigo · Answer

@Logan Marienau Kansas City would be a good choice not just because you used to live there but because it has good cash flow as well as strong economic and demographic trends. Personally, I would recommend staying out of the inner city urban core. We focus on the suburbs outside of the 435 loop---primarily Independence, Raytown, South Kansas City and Grandview. These are solid, working class neighborhoods and are easily within your price range.

Aaron H. · Answer

Hi @Logan Marienau - I'm an investor based out of Steamboat as well. Derek is correct that there's some opportunity locally (mostly in Craig and Oak Creek), but it's generally a tough local market. I don't know much about KC, but can tell you that I'm in a few out of state markets precisely because the Steamboat area is too expensive.

If you have any interest, PM me and I can get you on the mailing list for our local real estate meetup - we typically meet once a month (lately, on Zoom)...

If you have any interest, PM me and I can get you on the mailing list for our local real estate meetup - we typically meet once a month (lately, on Zoom)...

Lee Ripma · Answer

@Logan Marienau - I pay a lot of money for fancy GIS and data, so that map isn't available to the average person. I made it myself in software that is expensive (it's called ArcGIS). I'm talking about household income, correct.

Logan Marienau · Answer

@Mike D'Arrigo thanks! I’ll do a little more research on this few sub markets!

Alex Olson · Answer

Let me know if you want to chat about KC. I am an expert in the MF market here and can steer you in the right direction.

Kim Tucker · Answer

@Aaron H. MAREI thr reia baded in kc had gone virtual for a while, join us to network.

For those values you will find some in Johnson County Kansas. Olathe, Shawnee, Overland Park, Roeland Park, Merriam.  But limited.

Go north of the River to Gladstone, Riverside, Parkville or easy, Grandview, Raytown, Independence.

Areas where houses are al over 100k and the schools are good will serve you wrll.

Logan Marienau · Answer

@Lee Ripma that’s a cool data map. When you mention 50-60 I’m assuming that was the potential tenant’s salary?

Just curios where did you get that map? I’m also looking for a good crime and school ratings map or data source.

Thanks!

Logan Marienau · Answer

Hi Derek! Which markets are you referring to? Craig, Oak Creek, Hayden, Clark? Thanks!

Derek Diamond · Answer

@Logan Marienau

Hey Logan. If you are willing to go an hour outside of steamboat you can find properties in your price range.

Introduction!/Where to invest?

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