I love the calls I get from both coasts concerning real estate here in the Greater Kansas City area. When I get these calls they are almost always from investors, or would be investors, who have found that with all of the benefits that investment property has it simply cannot be afforded anymore by the average investor on the coasts. Specifically I'm speaking of California and the Seattle area. But Washington, DC and Boston fall into the same category. Florida, too.
Here in Kansas City we have a great variances in housing, affordability and rental returns. We have affluent areas such as Mission Hills, Kansas and low income areas such as a great portion of eastern Kansas City, Missouri. But the one thing both of those areas have here is a steadiness to their appreciation and reliability as far as income properties are concerned. Historically Kansas City is good for about 5.0% a year, on average. (Note for any attorneys prowling these pages for inaccurate information, that informaiton is an average and not a guaranteed performance!!!) Yes, we have years as high as 10% and some years when appreciation seems almost non-exsistent.
But we don't get the great swings many of you may be used to. And that is a good thing. Furthermore, you don't need to place 60%, 70%, or 80% down to get a property to cash flow. Depending on your part of town you can actually purchase properties here with NO MONEY DOWN and still cash flow. Now, these are not the greatest properties and sometimes your safety may be in question, but it is possible. By in large, to secure a property with marginal cash flow, good and solid appreciation and reliable tenants (as reliable as tenants can be!) you will need to put anywhere from 15% to 25% down. And that formula will even work with a property manager taking care of your headaches! See a great blog post on gaining a 254% ROI.
Greater Kansas City is a great place to own income property. Don't believe me? The Wall Street Journal even did a spread on the subject back in December of 2006. An educated workforce, low cost of housing (relative to what you are used to) and excellent school systems add up to disposable income and desireable neighborhoods. To find out more about Kansas City I would invite you to my website or my other blog.
Do you have specific question about Kansas City? Email me or leave a comment. I'll check back...
EDIT: This is a repost of an earlier article so that it can be included in Kansas City's market.
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