Long Distance Investing

[Austin Joseph]

Do any investors in the Austin area invest primarily out of state? Finding deals in Austin seems to be extremely difficult and even though I know of people that have success in DFW and SA I'm still interesting in discovering other markets that can provide both cash flow and appreciation. Kansas City has come up a lot recently but I'm curious to as to what y'all may know.

[Mike D'Arrigo]

@Austin Joseph Austin and DFW are tough or a number of reasons. A big problem with TX markets are the high insurance rates and property taxes. It's a big hit on your cash flow and ROI. I like Kansas City a lot and have been active there for about 6 years. Like a lot of markets, inventory is getting tight in KC also. I'm not sure what you consider a "deal" but for long term buy and hold, the cash flow is very good. Feel free to reach out if you want any insight on the Kansas City market. I'm happy to help.

[Edward Liu]

I would suggest Leavenworth, KS or Liberty, MO (all in the Kansas City area), which might still have some properties that meet most of your criteria. But you are unlikely to find things built after 1985.  Late last year I brought some duplexes (built around 1975) in Leavenworth, including rehab cost, total about $110k per duplex.  Getting $1500+ in total rent per duplex.  Many tenants are military, veterans, or people work at the military base there, seems rent payment are very prompt.  Current deals might not be as good, but should get 1%.