Kansas City Loft Search

kansas-city-loftI spent Saturday looking at lofts in downtown Kansas City.  Not as investment property but as corporate housing.  See, there is a Chicago based business with a branch here in Kansas City that is spending too much on hotel bills.  So why not go ahead and buy a loft?

As investment properties the loft and condo market in downtown Kansas City still leaves me wanting.  For instance, I was told that a condo “really cash flows” and that an investor she works with is really happy.  So naturally, I inquired as to details.  I was told that the place costs $136,500 and is renting on a two year lease for $850 per month.

To me, that is not a great investment from and investment property point of view.  Go ahead and work the numbers and argue with me.  But I’d rather find you something around Kansas City (and if you are patient you definitely can) that rents for $700 and you purchase it for about $85,000 to $90,000.

But going back to what we were doing…

dh_rivermarketThe investment for this corporation makes complete sense.  They are paying cash.  They would otherwise continue to drop at least the same amount of money on hotel bills.  And since this is a well established company with a well established presence in Kansas City they will own this property for years and years and years.

And it brought me back to when I was in my twenties with my young bride living in a high rise in Bethesda, Maryland.  (Just outside of DC.)  I love lofts and condos.  I love stepping out the front door and into a neighborhood full of life.   Pizza parlors.  BBQ.  Mexican food.  (Can you tell the River Market is where I’d buy one?)

4 Comments

Filed under Kansas City neighborhoods, Kansas City Real Estate

4 responses to “Kansas City Loft Search

  1. Aaron

    Yeah, that $850/month on $136k property doesn’t seem all that great. My company is getting $925/month for one purchased for $113k. Took us awhile to find it, but those numbers work a little better 😉 I agree, there aren’t as many attractive investment properties downtown as in other parts of the city, but there are some if you’re willing to be patient in your search.

  2. Patience is the hardest part. I have one guy that quit using my services because I wasn’t acting fast enough. Not sure what he expected me to do. Maybe monitor my computer 24hrs a day? 🙂

    Seriously, though, it’s best to wait for the right situation.

  3. Pat

    The extra cost of condo like fees for a loft should be included in the invest breakdown. Single family is still king in KC. They could consider a home in Volker with a garage. Volker is also on the 47th St Bus route, near D’Brox and other great places. The lawn service and maintance could be handled by a property management service for less than the “Condo Fee”

  4. Pat, in downtown KC most condo/loft buildings are rent abated. I think some expire in as little as 7 years while others still go upwards of 20. Those condo fees basically take the place of taxes for the short term…so no real extra cost.

    But you are right in that they are an expense and should be accounted for. And like you, I believe in this current market very few properties beat the single family home.

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