I’ve always heard that you have to get 100 miles from home before anyone will really listen to you as an expert. And I don’t know if I’m an expert, but I’m pretty darned knowledgeable about the Kansas City income property market. I say that not to brag but to tell a story as I get geared up for the Kansas v Texas A&M game this evening.
In town with me today and tomorrow is a gentleman from the Seattle area here to purchase a property…or maybe even two. He owns property in his home city and one here, currently. When I ask him if he is going to add to his Seattle holdings he says it’s doubtful because the “numbers there don’t pencil out.” He has some ties to Kansas City so he got in contact with me and came out to look around at what was currently on the market.
Showing him a few properties in Overland Park really helped him to understand how good we have it out here. It’s not necessary to put down 40%, or 50% or even worse 60% to get an investment property that will break even or produce a little Cash Flow Before Taxes. No, Overland Park provides good clean rental houses that “pencil out” with 20% down, or 25% down if you are looking to install a property manager. (And if you are looking at KC property from Seattle, Washington…I would advise that.)
Heck, if he didn’t like Overland Park and Olathe so much I might even take him over to certain parts of Wyandotte County, KS or Jackson County, MO where they cash flow with only 5%-10% down!
The amazing thing to me as a professional real estate agent is that I can talk till I’m blue in the face with a lot of “locals” and they are constantly worried about everything under the sun. Bring in an outsider and they get smiles on their faces.
Owning real estate for investment purposes is hard work. It takes financial stability, quick wits and a desire to improve your life on down the road. There will be inconvenient repairs and tenants that may drive you a little crazy. But when you are sitting on 6-8 properties on down the road with at least an 80% equity position you’ll be glad you took the time and made the effort to do so. Give Kansas City properties a chance. If outsiders can see it, shouldn’t you?
I’d love to hear your comments on this or why you think other areas might be better.