Johnson County, Kansas is the southwest corner of the Kansas City metropolitan area. And investing in Johnson County, Kansas real estate can be more expensive than elsewhere around Kansas City. But that's okay. Because the returns, year in and year out, always tend to be a cut above the rest of the KC area.
Yesterday I posted an article with the title Rental Property in Kansas City. In that post I mentioned a few of the areas that I like for real estate investing around the Kansas City area. Today I'm going to focus on the Johnson County, Kansas market.
Now for those of you unfamiliar with Johnson County, Kansas you will find within it's borders the cities of Overland Park, Olathe, Leawood, Shawnee, Mission, Prairie Village, Lenexa and quite a few more. Income is above average in JoCo and there is plenty of disposable income to go around. At least compared to what real estate investors on the coasts my be used to.
A quick look at the US Census Bureau's website and the Johnson County Community College websiteshows a county with above average income and below national average housing. That's a recipe for success when it comes to picking a place to put your real estate investing dollars.
Downtown Overland Park
Want a couple of examples of what I can find on the market for you right now? Here you go.
- Duplex with 3 bedrooms, 2 full baths, garage on each side. Vinyl siding. Minutes from the downtown district and the world famous Country Club Plaza. Priced at $225,000 with monthly rents of $1,850. That's .82% for you 1% rule people. But how many of those can you find now days?
- Single family home with 3 bedrooms, 1 full bath and 1 car garage. Older section of town in Olathe, Kansas but stays full. Rent for this single family home is $750/mo.
If you are looking in from California or elsewhere you are probably drooling right about now. That's okay. If you still aren't ready to move some of your capital to Johnson County, Kansas we'll still be here when you are.
Great job growth, affordable housing, magnificent zoning and planning and outstanding schools make Johnson County, Kansas a great place to invest in real estate. You can take any 10 year period and you should see 5%-7% per year appreciation. Some years a little higher. Some years a little lower. But figure on penciling in 5% for your projections.
Vacancies run about 5%. Some pockets I'm not too crazy about and can run a little higher on the empties. But in general we'll use 5% here. Taxes are reasonable. Rents are firm to growing. And the county continues to excel in so many areas.
I look forward to hearing from you...
Chris Lengquist
Keller Williams Realty
Diamond Partners, Inc
Olathe, Kansas
913.568.1579
listwithchris@kw.com
Comments(0)