An interesting article was brought to my attention. It was published in the Wall Street Journal on December 23, 2006 and it was speaking of the new rules of real estate investment. And as I understand it the article named Kansas City, and it’s surrounding suburbs, as a place where the savvy investor would want to put his money.
This is not news to me! Over the past 12 months I have helped a half dozen people from the California and Washington purchase homes here in the metro KC area for investment purposes. When they tell me the acceptable numbers for their home areas, I cringe. Why would you want to have to put down 50%, 60% or 70% just to cash flow on a conventional mortgage. And the “gimmick” mortgage options they describe to me get me to chuckling. Seriously, you could invest here with 15%-25% down, hire a property manager (so you don’t have to do anything!) and still break even…or better.
Housing here in Kansas City is fabulous. We have a very nice mix of affordable and middle class and darn right wealthy. Duplexes are an easy and affordable way to get started and yet there are plenty of “priced right” single family homes and apartment complexes you could venture in to should you desire to do so.
If you are from the Kansas City area (including Overland Park, Olathe, Lee’s Summit, Blue Springs…among others) wake up and smell the roses. Quit looking around and start acting. If you are from outside of Kansas or Missouri, I would love to tell you about my hometown and the returns that can be generated here.
Real estate investing can be fun and profitable. It can also be nerve racking and drudgery. Which would you like to chooose?