Looking for good area's to invest into - KC, MO (Kansas City: bank owned, real estate market)

[RLFarr]

Hi-
I am a very small time Investor trying to take advantage of current Real Estate market conditions. I've heard KC is a great place to invest, so I've started to do a little digging and even spent 4 days in KC talking to several different property managers and trying to get a feel for KC and surrounding area's. I live outside of MO. After spending a lot of time researching KC, MO and physically being there I'm not sure I'm any further that where I started. Some area's look great, then literally the very next street it doesn't look so great. So I'm turning to those of you in the area for help. I'd like to stay under $100K for the investment amount, and of course get as much as possible for rent. But more importantly, I'd like the property to be in a safe area that will stay occupied. I've dealt with Three Real Estate agents, and they've all pushed me to area's with high priced homes. I'm not sure if they're wanting more commission, or they really are the only area's to own rental properties in. Any advice you're willing to give would be greatly appreciated. I prefer old houses which I'll do a top quality rehab before getting them occupied. Any suggestions? And just the same, any suggestions of where NOT to go? Thanks for your time and input

[nullterm]

In Kansas City, the most profitable strategy is to buy houses for around $25k, put $10-$20k into them, and either rent them out for $500-$800 per month or sell them for $60-$80k. How do I know this? Because I know two extremely successful companies that do just that. I own a rehab company that focuses on higher-end remodels, and the %ROI pales in comparison.

[RLFarr]

Thank you! That's exactly my strategy, I think I'm probably being over concerned about crime rate. If you know any good contractors that could use some work, feel free to inbox me. I'll be starting out with Two properties, but would like to get 10-12 in the next year. I'll probably keep them occupied for a few years and hopefully ride the appreciation wave....we'll see. I've put several offers in on REO's and Foreclosures, so hopefully something will pop soon.

[zmgriffith]

For every succesful company buying, fixing, & renting, there are 20 who have lost their shirt.

Caveat Emptor.

[brewcrew1000]

You might want to look into the area from about 85th to Gregory, Holmes to State Line, fairly cheap homes in a somewhat desirable part of town

[nullterm]

Originally Posted by zmgriffith

For every succesful company buying, fixing, & renting, there are 20 who have lost their shirt.

Caveat Emptor.

A lot of those are idiots with no experience who think it's cool because of HGTV.

They got what they deserved.

[nullterm]

Originally Posted by brewcrew1000

You might want to look into the area from about 85th to Gregory, Holmes to State Line, fairly cheap homes in a somewhat desirable part of town

This is a great idea. In Waldo, you can find homes for under $50k and flip them easily to first-time home buyers that insist on living in Missouri. There are some that are drastically less than that which are actually torn down and built brand new.

[RLFarr]

Great info, thank you! I'll look into that today. What are your thoughts (anyone familiar with area) on; Hickman Hills area? I've found couple of Bank owned properties for cheap but will need full rehab. The value's seem to be fine, but understanding them on paper is one thing. Understanding them locally is completely different. Also, anything North ok KC, MO worth looking into?

[WiseOwlSaysHoot]

Houses under $50k in Waldo are increasingly rare - there aren't currently any on the market. Expanding a bit further south to Bannister Rd. to include the Indian Village area may increase the likelihood of finding something in that price range. I do agree that if you can find something in the Waldo area, it would be a good investment area both for rental and resale down the line.

The real estate market is getting tight as inventory is down across the board. This is especially true for investment properties. Good deals are still out there, but they are moving very quickly - often with multiple offers going over asking price.

I assume you mean Hickman Mills, not Hills? Not the best area, but not the worst - it has been on the decline for quite some time. There is a giant church/cult of wacko's just to the west that has been attracting a number people to move to that portion of the metro - though I'm not sure how many end up in Hickman Mills, as opposed to Red Bridge and Grandview. Overall, I don't think the prospects for that neighborhood are the best.

The Northland might be a better place to look than the SE. There are some cheap homes to be had near Gladstone, the city of North Kansas City and some parts of Kansas City North. The low prices will be in somewhat depressed areas - working class/lower class but I don't think they have especially high crime.

An area I might suggest looking into is South of Rockhurst University, between Troost and Paseo. Good rental potential for college students (it's also close to UMKC) and there has been some gradual gentrification occurring, so there is the potential for significant appreciation (like the area North of Rockhurst has already seen occur in the recent past).

Another area with some dirt cheap homes that could be poised for a turnaround in Manheim Park (39th to Brush Creek, Troost to Paseo). This neighborhood has been hit hard by decay, but there is a new concerted effort to revive it. Brad Pitt's Make It Right Foundation has a large project in the works and there are other organizations (some inspired by the Green Impact Zone) that are working to revive the area.

Also I would suggest the Northeast in KCMO, north of Independence Ave especially in the Pendelton Heights and Scarritt Renaissance neighborhoods.

[nullterm]

Originally Posted by WiseOwlSaysHoot

Houses under $50k in Waldo are increasingly rare - there aren't currently any on the market. Expanding a bit further south to Bannister Rd. to include the Indian Village area may increase the likelihood of finding something in that price range. I do agree that if you can find something in the Waldo area, it would be a good investment area both for rental and resale down the line.

The real estate market is getting tight as inventory is down across the board. This is especially true for investment properties. Good deals are still out there, but they are moving very quickly - often with multiple offers going over asking price.

I assume you mean Hickman Mills, not Hills? Not the best area, but not the worst - it has been on the decline for quite some time. There is a giant church/cult of wacko's just to the west that has been attracting a number people to move to that portion of the metro - though I'm not sure how many end up in Hickman Mills, as opposed to Red Bridge and Grandview. Overall, I don't think the prospects for that neighborhood are the best.

The Northland might be a better place to look than the SE. There are some cheap homes to be had near Gladstone, the city of North Kansas City and some parts of Kansas City North. The low prices will be in somewhat depressed areas - working class/lower class but I don't think they have especially high crime.

An area I might suggest looking into is South of Rockhurst University, between Troost and Paseo. Good rental potential for college students (it's also close to UMKC) and there has been some gradual gentrification occurring, so there is the potential for significant appreciation (like the area North of Rockhurst has already seen occur in the recent past).

Another area with some dirt cheap homes that could be poised for a turnaround in Manheim Park (39th to Brush Creek, Troost to Paseo). This neighborhood has been hit hard by decay, but there is a new concerted effort to revive it. Brad Pitt's Make It Right Foundation has a large project in the works and there are other organizations (some inspired by the Green Impact Zone) that are working to revive the area.

Also I would suggest the Northeast in KCMO, north of Independence Ave especially in the Pendelton Heights and Scarritt Renaissance neighborhoods.

There aren't currently any active listings in Waldo under $50k, but there have been plenty that have sold within the last 365 days. They just get snatched up super quickly, because it's a great move. I count about 30 under $50k within the area of Gregory/85th/State Line/Wornall. So it happens about every 10-15 days, if you're paying attention to the market.

The other areas you mention are excellent for cheap renovations, but you should definitely not put too much into these places, because their top end is fairly unimpressive.