Effects of a COVID recession on the Kansas City Economy

[Colby GeDeros]

My goal is to hit $10,000/mo in cash flow in the next 5 years and I am looking at the greater Kansas City area to start building my rental portfolio. Before shifting my focus from the more expensive markets in Oregon, Utah, Idaho to the midwest, I was looking at investing in small-multi family homes. Now that I'm looking in the midwest, my strategy has shifted to purchasing SFHs in order to attract and retain more long term tenants. 

The areas that I have been exploring in the KC Area are Downtown KC, Independece, Raytown and Exceisor Springs. 

What I'm hoping to gain here is a better understanding of the economies and industry in the general KC area and KC submarkets. Where do you see KC in the next 10 years, with or without a COVID induced recession? 

Are there any submarkets listed above that you would avoid and any others in this region worth exploring?

p.s.I"m also looking for an Agent to work with so please pm so we can chat. 

[Kim Tucker]

I would suggest googling Block Real Estate Market Report - they put out a decent report on all ways to invest in KC and a snap shot of the economy at large that while targeted to commercial investing, helps the single family investor.

You can also go to KCRAR.org the local realtor board to get market data.

Houses and small multi family is hard to come by, a good deal has 10 offers and sells in 24 hours.

Contractors are also hard to come by, the good ones are 3 to 4 months out unless you know a guy.

And personally, I would avoid Kansas City Missouri because the KC Tenants  (that's an organization) are waging war on the Housing provider, chaining themslves to courthouse doors or photo ops, and getting restrictive laws passed.  Also, Raytown as they recently passed a draconian inspection regulation for not only rentals but any house that is sold.  The way I read the Raytown law, is that a house must be inspected and repaired before sold, and that would seem to prevent selling a fixer upper to an investor, but not sure that it is being enforced as it passed just before COVID started.  A similar law in Ohio was struck down.

Check out Gladstone, North Kansas City, Olathe, Spring Hill, Parkville, Riverside, Independence, Blue Springs, Lee's Summit, Raymore, Belton, Grandview.

Gladstone, North KC, Parkville and Riverside are in the Northland, with Kansas City access, with out the address.  Raymore and Belton are out south and growing with lots of industry out on Botts Road.  Olathe, Lenexa, DeSoto and Gardner are the growing outlying areas of Overland Park, also with lots of room for industry growth.  Overland Park is the big city on the Kansas Side, that keeps gobbling up other small cities, but they do maintain their infrastructure, have jobs and are not overly restrictive.