Real estate investing in Kansas City right now is all about the single family homes. There is more downward pressure, build-in equity and inventory of these properties.
Many of the multi-family investment property owners (duplexes, fourplexes and apartments) have either already failed and fallen into foreclosure or they are continuing to sail along. Why? Because while the value of a particular duplex may have dropped, say 5%, the rents still cover all the PITI and expenses if the investment property was purchased on proper fundamentals. Follow?
But the SFH seller may have lost a job or fallen ill or whatever and they need to either turn the keys in or sell at a steep discount.
Now, being Kansas City, we still haven’t suffered anywhere near what other parts of the country have. Thank God. But if I were a real estate investor I’d be looking more in the single family home market than multi-family homes.