Observations of the Current Investment Property and Rental Markets

Owning investment property is markedly better when the rental markets are strong.  And that is where we are right now in Kansas City.  I thought I would share a few observations that I have about our current investment property and rental markets.

  • Prices for Rehab-to-Rent homes are on the uptick. Not a good thing.  If this continues the real bargains on single family homes for income property purposes probably has a window of another 6-12 months for great cash on cash returns.
  • Cash on cash returns on Rehab-to-Rent homes are down about 1%-2% in the last 6 months.  In our core service area, returns are now hovering in the 11%-12% range.
  • Johnson County, Kansas rental market is on fire!  We have some vacancies that are over before our listings even syndicate.
  • Bell curve income property in Olathe is renting in the $1,400 – $1,750 range all day long.
  • Competition is way up for Rehab-to-Rent homes on the Missouri side in the $45,000 – $55,000 “all in” price range.

Buy while you can.  Some day this will get more expensive. And that day is coming sooner than later here in KC.

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Filed under Investment Property, Property Management

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