Thoughts on the Current KC Market?

Question

KC has long been advertised as a great upcoming area to invest, and it's not hard to see posts on here from a few years ago saying the same thing. However, now that a few years have gone by, I'm wondering how opinions have changed in terms of investment value and opportunities in the area.

Logan Freeman · Answer

@Nick W. Kansas City is still a fantastic real estate market, you have to know the right people. @Micah Thomas is a great resource. SFR have heated up. We made the switch to commercial last year and are seeing fantastic opportunity still.

Andrew Erdrich · Answer

Currently a seller's market with a shortage of available stock (only about 2 months worth vs. 4 to 6 which is more normal). Properties often list and sell in very short periods, so the market is very competitive. Now may be a good time to research the areas of KC, find which you like the best in terms of an investment, build capital, and get all your ducks in a row so when you're ready to buy, you can buy as quickly as possible. Another option is to wait and watch the market a little. All the agents I have talked to have stated they have seen a gradual shift and that the market is slowing down. Rental price increase seems to be capping as well, but this is much more speculative and you should follow up with other sources. Let's not forget that there is also a major mayoral election this summer and most people are speculating the city manager, Troy Schulte, will also be leaving after a decade. All that government change over may really shake things up. Tenant rights, affordable housing, and tax abatement for developers have all become big ticket issues.

Also, don't sleep on KCK. While Wyandotte county has the highest property tax of any county in Kansas (they have low density but high infrastructure needs so the tax burden has been put on property owners), there is a lot more building stock in that area, especially for someone looking for single family homes. This area is definitely a developing residential area (Strawberry Hill for example) and prices are relatively cheap compared to the urban core of KCMO. It's also a 5-10 minute drive to downtown. Something to chew on.

Last bit of advice: While I personally don't have any interest in Independence (I like that big city life I suppose), it has a lot of great options. I prefer North KC due to it's location, amenities and lack of a hardcore meth culture. This area has been coming up quietly for the last decade or so. My CPA (who I love) has his office there, they have good schools, and the best YMCA in the metro area. Check for properties being on a flood plain.

Ta ta for now and good luck!

Jake Riordan · Answer

There are certainly possibilities to be had still in KC, but competition is solid as well.  For example - I found a good cash flowing 4 plex in a C area over the weekend & had multiple offers WELL over list on the 1st day.

I'm happy to set you up on an auto MLS search if you like so you'll at least be notified asap when good ones pop up.

Best of luck!

Jake Riordan

RE Broker KS & MO, Investor

eXp Realty

Ray Williams · Answer

Looking into KC for multi-family ($1M-$1.5M) opportunities. Open to either turn-key or always love a good value add opportunity as well. Would lean turn-key being from Denver though.

Any thoughts or insight to multi-family in KC from the experts in the area? Trying to learn more about the area for a potential upcoming visit.

Matt K. · Answer

westport/plaza

Going to be hard to get deals because you're competing against home owners or landlords trying to exit with healthy profit

Westport runs the risk of becoming too ghetto to justify purchase price...

Plaza expensive but "easier" to get higher rents and better rental pool

to waldo/brookside

Waldo lot of home owners go after cheaper houses and they are mostly old. Can get ok rent but can take while to find a good candidate and lots of bad ones..

Brookside too hard because prices way up and rents not even close

Can go into more detail if you want ... But you need to understand the value of the home as is and not apply it to generic rules like a b c ratings. Also tradesman are booked up with ton of work so can be hard to get small projects done well or it'll be expensive unless you have solid connection and even then a pain

Things are slowing down though but by no means are people dumping properties and if they are still plenty of cash flush buyers.

The deals come from people not understanding rent potential or not having faith of a specific unit being able to rent at a premium. On the flip side plenty of bs floating around that isn't realistic and way to high also...

Dan Krupa · Answer

@Nick W. market is very hot SFH wise but there are still deals out there. Love the Parkville area and that you are looking North of the river.  I can't say enough good things about it.  We flip full time and I am also a broker - the number one thing I am seeing is a serve shortage in entry level homes.(where you want to be)  MLS might not be your best option. Anything that hits that needs work has multiple investors offering on it same day. But again...there are still deals out there if you know who to work with.

Micah Thomas · Answer

Hey @Nick W. Kansas City continues to be a great place to invest. It's always changing, but there are opportunities for all kinds of investors. What specifically are you interested in?

Brett Rounkles · Answer

Agreed. KC offers great cash flow because it is still a very affordable market. The growing of KC through the next 5 years is huge with tons of construction going on currently.

Lan Nguyen · Answer

Hi Jake

Would love to be on this list

Billy Smith · Answer

SFH "A" in Johnson County is red hot anything hitting the MLS is priced to the point of no meat on the bone for an investor of course there is a few expectations to that rule.

The only way I have found deals is word of the mouth, fact I am looking at a  SFH "A" right now, but the amount of work needing done and the value the owner thinks it is worth is a spread that may not shrink to the point of a trigger pull.

Thoughts on the Current KC Market?

Most Popular Reply