Well, first off, you recognize the shear size and cultural complexity of Kansas City. No, we are not the most populous nor densely populated city in the States. But we are huge geographically. Lucky for us, we have lots of highway miles for a city our size. But heck, the airport is 43 miles from my home in Olathe, KS and the airport is located in Kansas City! (ie, I can be in KCMO in less than 10 miles. But it can take me 43 miles to get to the northern end of the city. By east coast standards, that a long way.)
So not all of KC is in a seller’s market. But Johnson County, KS is. Johnson County is Overland Park, Leawood, Olathe, Shawnee, Mission, Prairie Village, etc. Since about early March the market has been red-hot. Prices haven’t been skyrocketing but Days on Market has been short lived. With the heat of July (and the vacations) the market has cooled somewhat. But it’s still simmering.
You have a choice.
Either buy smart and accept that the prices are up and thus, returns are down or sit and wait. But wait for what? Maybe the market doesn’t go down. Maybe, and this is highly probable, interest rates start to tick up.
Now interest rates would have to really tick up to be “bad”. But every extra expense in interest is less house you can obtain and still get acceptable ratios for rental property. Higher interest rates are not good for landlords, nor renters. If rental housing supply is still low when interest rates are ticking up the investor will try to pass that cost along to the tenants. Easy to do in a low vacancy county like Johnson County.
The best time to invest is when you have the money and are ready to pull the trigger. Economies wax and wane. Go ahead and get aggressively patient. Search out that “good” rental house. And when you see it, act quickly before someone else does. Don’t buy just to buy. But be ready to act quickly once an opportunity presents itself.