Monthly Archives: April 2009

April 29, 2009 · 8:59 am

Kansas City Rental Market Hot & Cold

I received a phone call from one of my favorite Kansas City real estate investors yesterday asking me how the rental market is. Well, that depends on which house for rent you are talking about. She (along with her funny as heck husband) own investment properties from Blue Springs, MO to Olathe, KS. Here is what I’m finding and what I told her.

Kansas City – The Missouri side is better than the Kansas side when we are talking about within the city limits of Kansas City. But Kansas City, MO has the really depressing area of US 71 Hwy over to I-435. That market is flooded. Waldo, red hot. I put out a sign on the 23rd. So far I’ve had six showings and several have taken applications. Phone calls top thirty. Another investor I know over in Waldo rented his place in less than two weeks. Another in less than a week. Over by the Bannister Mall area (what will we call that now?) I have an investor with only one vacancy in about eight rental homes.

Olathe & Overland Park – Pretty consistent. Rental properties seem to have a vacancy period of anywhere from two weeks to a month and a half. Not too bad. Not fantastic. Just steady-as-she-goes, as usual.

Blue Springs– Seeing a little softness out there. But not too bad. Should have no more than 60 days vacancy. I say that, but then a duplex I have over there is full and there are only about 3 vacancies in a neighborhood of about 220 doors. But the western and southern edges of Blue Springs are little different story.

The key when looking to buy more rental property for investment purposes is to look for properties that tenants will like. Keep them in good condition and market them at fair prices for their respective neighborhoods. Regardless of price range.

2 Comments

Filed under Kansas City, Kansas City Real Estate, Property Management

April 27, 2009 · 8:04 am

Kansas City Loft Search

kansas-city-loft I spent Saturday looking at lofts in downtown Kansas City. Not as investment property but as corporate housing. See, there is a Chicago based business with a branch here in Kansas City that is spending too much on hotel bills. So why not go ahead and buy a loft?

As investment properties the loft and condo market in downtown Kansas City still leaves me wanting. For instance, I was told that a condo “really cash flows” and that an investor she works with is really happy. So naturally, I inquired as to details. I was told that the place costs $136,500 and is renting on a two year lease for $850 per month.

To me, that is not a great investment from and investment property point of view. Go ahead and work the numbers and argue with me. But I’d rather find you something around Kansas City (and if you are patient you definitely can) that rents for $700 and you purchase it for about $85,000 to $90,000.

But going back to what we were doing…

dh_rivermarket The investment for this corporation makes complete sense. They are paying cash. They would otherwise continue to drop at least the same amount of money on hotel bills. And since this is a well established company with a well established presence in Kansas City they will own this property for years and years and years.

And it brought me back to when I was in my twenties with my young bride living in a high rise in Bethesda, Maryland. (Just outside of DC.) I love lofts and condos. I love stepping out the front door and into a neighborhood full of life. Pizza parlors. BBQ. Mexican food. (Can you tell the River Market is where I’d buy one?)

4 Comments

Filed under Kansas City neighborhoods, Kansas City Real Estate

April 17, 2009 · 1:01 pm

Does Your Real Estate Agent Understand Their Duties?

legal-real-estate-issues Agency. It means something a little different in all fifty states. Here in the Kansas City real estate market we that have licenses in both Kansas and Missouri have to keep straight the differing rules and regulations regarding real estate agents and their various forms of agency.

This post isn’t about explaining the various forms of agency. Though that would be a great series of blogs. Nor is it to discuss the differences between Kansas and Missouri. Again, another series of blogs that may be worth pursuing. But this blog post is to point you towards a Kansas City Star article regading real estate agents with Block & Co (a commercial real estate brokerage here in Kansas City) that apparently failed to meet their fiduciary duty towards their seller clients.

Now, I’m not privy to all the facts. And I am of the belief that a jury would almost always rather side with a seller or buyer than an evil, rich real estate firm. But when a jury only deliberates for an hour that speaks to pretty strong evidence. Read the story. Then think about who you want to represent you in your next real estate transaction. Would you prefer a seasoned professional, a part-timer with little experience or even worse, yourself?

What amazes me is that commercial agents wouldn’t realize the seriousness of signing an agreement that says you would qualify buyers before allowing them to offer. I’m curious as to what kind of background/financial check they conducted.

(Editorial note: There are a very few of you out there that are/would be qualified to represent yourself. You need not comment unless you really feel compelled. But most people are better off using a professional real estate agent. Be that me or someone else.)

Rental Property Update For Waldo

The Waldo neighborhood of Kansas City is seeing some pretty darned good activity right now on rental property. I know of two different units that went up for rent about or less than 30 days ago. One has a tenant already in it and one received a deposit last evening. che-pi

As I’ve already told you a couple weeks back I’m seeing a lack of inventory that is ripe for cherry picking. There are homes to be had. But the “deals” everyone dreams of when watching their local news are just not there. While it is certainly not a seller’s market in Waldo neither is it a buyer’s market. If the inventory is priced according to it’s condition it will sell quickly. Same goes for the rental possibilities.

Waldo is a section of Kansas City that I just love for rental properties. If you are looking for an investment property it’s a great place to start. I also I have my eye on a place up in the East Plaza area.

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Filed under Investment Property, Kansas City neighborhoods

April 12, 2009 · 5:56 pm

Are You Going To Finish Strong?

Back To Blogging

Sorry I’ve been away this last week plus. Here are my list of excuses;

The NCAA Tournament held it’s Sweet 16 (as far as my beloved Jayhawks made it) through Championship Game and those that are regular readers know I worship college basketball.
I celebrated my 44th birthday with my family. In my mind I just graduated high school…
Getting ready for Missouri audit. Looking and re-checking each and every document over the past 12 months to be sure each box is checked. For every mistake they can find both property management wise and real estate wise it’s about a $250 fine. That adds up.
Just needed a writing respite.

But sadly for you I’m back!

Here is a little blurb from the Kansas City Star that is telling…

Retail and recreational development in Wyandotte County has helped raise the average weekly wage in the county 7.5 percent, the seventh-largest increase among 335 large U.S. counties. The U.S. Bureau of Labor Statistics reported Wednesday on increases from the third quarter of 2007 to the third quarter of 2008. The average wage rose 4 percent in Johnson County and 3 percent in Jackson County. It dropped 1.7 percent in Clay County. Those counties average weekly wages: $867 in Johnson; $830 in Wyandotte; $851 in Jackson, and $765 in Clay.