For most of the last 150 years the migration from the Kansas City to California has been mostly one way. Out of Kansas City. People. Money. Talent. Whatever, it left KC and headed to LA. But as real estate investors come back in to the market I have noticed an influx of 1031 tax deferred exchange money coming from the Los Angeles and San Diego areas to Kansas City. Why?
So far this year I’ve closed over $3,000,000 in real estate here in the Kansas City area on the downside of the 1031 exchange. I’m advising another local area agent as she helps another CA ex-patriot move himself and his assets from the sunshine state to the more stable and affordable rental property world of the Kansas City area. We’ve helped these two (and other investors) acquire rental assets on both sides of our state line here…sometimes a tricky proposition.
If you are tired of the low returns or high prices of the California real estate market, especially for real estate investors, you may want to carve out half an hour to talk to me about the Kansas City area and what is available to you here in our market. Maybe not all of your assets should head this way. But I’ll betcha a good portion of your rental assets here can outperform some or your California based assets, whether it be LA, SD or SF.