Kansas City Investment Property

Kansas CityI was reminded again all weekend long how lucky those of us that live in the Kansas City area have it when it comes to investment property ownership.  As many of you know I love talking with Jeff Brown regarding investment property.  When we talk single family homes he says “no way” in San Diego.  I know the same is true throughout much of the coastal areas. 

It seems, however, that in many/most places between the Ohio River and the Rocky Mountains that we can choose to own single family homes as investment property.  Sure, it takes a little more up front capital to make the numbers work for you and not against.  But really, is putting 20%-25% down on a vehicle that will take you to retirement such a horrible thing? 

Depending on your situation I may sometimes recommend 10% down on a duplex.  Other times I may recommend 25% down on a single family home.  Especially if we can pick up the rental home $10,000, $20,000 or even $40,000 below market.  No, you will not be able to turn it around and sell it right away for a profit in this soft market.  But what that the intent anyway? Airline to Kansas City

Think golf.  Different clubs for different results.  California real estate investing has a pretty narrow scope, now.  Maybe one or two clubs left in the bag.  But the California real estate investor, like the Maryland real estate investor, does have a choice.  Get on a plane.  Visit Kansas City.  I think you’ll like what Kansas City has to offer in the way of investment property.

5 Comments

Filed under Investment Property, Kansas City Real Estate, Real Estate Investing

5 responses to “Kansas City Investment Property

  1. It’s amazing how some in the coastal regions hang on to their beliefs about the local markets. They will not face reality, and it’s unbelievable even when you see/hear it first hand as I have.

    The sad part is the quality of their retirement is in real jeopardy, which they won’t realize, apparently, until the retirement party is over.

  2. Jeff – I was out with some folks from NYC today and it was fun to watch them and listen to them regarding our homes, their values, their rents and where I see future growth.

  3. Bawldguy, coastal markets realize one thing the Midwest rarely do…appreciation. The 40-somethings bought for $250k – 300k in the early 90’s (Orange County) and saw their values rise to $700k within the past 5 years. Their homes are now worth $550k at the very least. That decrease would decimate a Midwest community while most there just have to wait and weather the storm.

    They have good reason to hang on to their beliefs…. it made them all $200k + even in the downturn. Ask the 60+ something that bought new homes in area like Huntington Beach, CA for $39k when the homes where new in the 70’s, they were criticized for buying at that time the most expensive homes in all of Los Angeles and the new Orange County at that time (with 12%-18% Interest Rates)

    We typically only consider the last 5 – 10 years of market conditions, don’t forget that most people’s reality there is better weather, higher paying jobs and the big blue ocean that land locks values for the long term.

    Not everyone is going into foreclosure in the coastal markets. If anyone actually has spent any time in the hardest hit areas like the Inland Empire (Riverside) you will know why it is hit so hard. It is hot, dry and an hour away from everything (without traffic).

    This market is about bad investments by badly informed consumers. I have a hard time thinking that the veteran investors and owners are in a bad spot considering they have been through more than one housing cycle. That would be independent of the locale.

    I agree that the dollar can go a lot further in areas like Kansas City for passive income but coastal markets will always outperform in the long term.

    I suppose you could argue they are two different paths of investing.

    Thank you for the perspective Bawldguy & Chris. I enjoy your Blogs.

  4. First, thanks for the kind words. They are appreciated.

    Second, from a “homeowner” point of view I simply will not argue. I love my Kansas City as I know you do. But CA has us in sun, weather and fun…hands down.

    Now as far as investing is concerned you should click the City Comparisons button under my Categories section. See what you think on my KC vs LA argument.

  5. iram rodriguez

    My dream,s ,very good ,congratulations,beautiful…my dream,s forever.city amazing…Sorry…english

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