Kansas City: BRRRR properties all-in for less than $100k?

[Mel Adams]

Hey everyone - I'm looking at getting my first door in Kansas City using the BRRRR method, single family, C to B- neighborhood (I think), all-in for $100k or less cash. At first I thought there was enough inventory in this price range (also, I'm not sure I know what constitutes "enough"...more so just eyeballing it right now), but the more I look at it I'm not sure there is? Or at least in the neighborhood class I'm looking in. Is that an unrealistic expectation?

If all goes well, I'd like to stay in one market for more than one door so I'm not trying to build a new team out of state every deal. I'd love to get some input from local investors on if $100k or less, all-in, is a sustainable strategy in a C to B- neighborhood.

Thank you!

[Kim Tucker]

Here's what I'm seeing - out of state investors, like yourself, have been buying up houses at crazy, stupid prices for the past year - what has traditionally been a 60 to 80k house for the last 20 years, except right before the crash in '08 when they were up to $125 to $150k and then crashed down to $5 and $10 . .  well those house are now sitting at $150 to $180 or more.  

Can you get a house under $100k - maybe if you are doing the work to find the house, rehab the house, rent the house, do the whole BRRRR yourself. If you are working through turn key or team players, it probably is not.

Is it a bad time to buy a rental in KS?  Not a bad time, just harder to get a deal and it's not going to have the cash flow Kansas City has traditionally been known for.  Also, keep in mind that Kansas City Missouri proper has added a ton of new regulations and will probably be adding more.

Now if you are going to be paying those higher prices anyway - look further afield in KC to North Kansas City, Gladstone, Blue Springs, Lees Summit, Overland Park, Lenexa, Shawnee, Merriam - go for better schools districts, areas that actually have grocery stores and other amenities that homeowners want (a Wal-mart or Target perhaps).  Not saying that there is a crash coming, I don't think so, but if the market cools and prices go down, the suburbs don't cool quite as much as those urban core properties will.

Just my opinion, I could be totally wrong.