Looking to buy my first rental in Kansas City, Kansas, does anything cashflow?

[Victor N.]

Hi all, 

Starting out on building a rental portfolio, looking at single families between 200k to 400k in Johnson County, Kansas. Given the current interest rates, I've put down the numbers in a couple of calculators and the results are all negative cashflow. 

20-25% down, 7.5% interest, rents come in anywhere between 1800 to 2500 a month. 

Any thoughts? 

Thanks, 

Victor

[Ty Coutts]

Hey Victor,

Given the current interest rates, it’s definitely a challenge to make cashflow positive with those numbers. In Johnson County, Kansas, with single-family homes priced between $200k to $400k, you might find it tough to get positive cash flow unless you're able to adjust the down payment, interest rate, or find a property with a higher rent yield.

Consider looking into properties with lower purchase prices or in areas just outside of Johnson County, where property prices might be lower, yet rents remain competitive. Another option is to target multifamily properties—duplexes or triplexes, which often provide better cash flow per unit.

Also, if you're locked into higher interest rates, refinancing options down the road (when rates drop) could give you some breathing room.

Hope this helps, and feel free to reach out if you need more insights!