There was a point in the last real estate boom where I literally, without exaggeration, received 15-20 calls a week from California real estate investors looking to buy rental property in a part of Kansas City now referred to as The Murder Factory.
The Murder Factory is the 64130 zip code in Kansas City. And trust me, you can also throw in the 64132 zip code as well. To see where these zip codes are in the city click on this zip code appreciation link from a blog post I did last year regarding Kansas City real estate.
To get a full appreciation of what I’m saying you’ll need to visit the Kansas City Star’s article on The Murder Factory. Read both parts. Go ahead. I’ll wait. I’ll be here when you get back.
(The photo above was taken from the Kansas City Star. Click on link for full photo credits.
“What I’m going to do is buy these homes for $5,000 – $15,000, put in $3,000 – $5,000 in repairs and upgrades and then rent them to Section 8 tenants for $825/mo. Then I can sell it for $70,000. Will you be my real estate agent and help me find these?”
I realize this is a family blog. But it was bullshit from the beginning and it still is. Today, I receive about 1-3 calls a week from people who bought these dogs begging me to help them sell them. Last week I had a call from a New York real estate investor who swore to me he was willing to let a few of his houses go for 35 cents on the dollar just to be rid of them.
Trust me. At that price he was still making a profit and leaving someone else with headaches unimaginable. This is not a Kansas City problem. It happened (still happens) all over the country. Heck, I still get calls today asking me to participate in this stuff.
If you are participating in this kind of activity in these kinds of neighborhoods then shame on you. You are continuing the raping of these people for your own personal gain. And I won’t be a party to it.
If you really want to help, be a part of these neighborhoods. Put the money into a house, find good tenants and then put some of that money back into the neighborhood. Spend your dollars at the local restaurant. Get your oil changed there. Be a part of something.
But if you are looking to just make a quick $5,000 – $15,000 you run a big gamble. It could backfire on you. You could end up another real estate investment casualty. You could end up hurt or dead. At the very least, you will have sold a piece of your soul.