Category Archives: Kansas City neighborhoods

February 17, 2008 · 12:32 pm

New Zip Code Appreciation (Depreciation) Map for Kansas City Real Estate

Last year I linked to the the Kansas City’s Star’s report on housing appreciation in the Kansas City metro area.  By in large there was modest appreciation and some depreciation…but not enough to worry about in most places.

This year’s interactive map shows a different story.  Read the entire story here.  (NOTE:If the Kansas City Star holds true they will not have this map up indefinitely. Housing Under Microscope So it’s possible the link will lead you to nowhere after a couple weeks.  If they do you can purchase a zip code map for Kansas City by clicking Zip Code Map.)  Now let’s put the numbers under the microscope and see what we see.  Especially for those out-of-staters that read this Kansas City real estate investing blog.  You need to have the full story interpreted.

Everyday I get would be real estate investors calling from around the country.  Especially California.  They are always wanting to flip houses and/or buy the lower priced houses in the city so they can get “good cash flow.” 

The houses they like to target are generally located in the following zip codes:

  • 64130    -23.4%    -19.6%
  • 64132    -12.8%    -12.4%
  • 64134    -14.6%    –  9.3%

Next to the zip codes above is the “appreciation” rate for those areas in the last year, followed by the Kansas City Star’s explanation of the appreciation rates for all years dating back to 2003. 

Now lets look at the zip codes where I’ve had my last 10 transactions since December:

  • 66204    +  1.4%    +11.7%  (1 unit)
  • 64083    +  6.0%    N/A      (3 units)
  • 66106     -10.5%    +0.7%  (We got a steal on a rehab)
  • 64064    +  6.0%    +17.4% (2 units)
  • Gardner   –  not listed though I suspect close to Olathe’s 66062 at +7.6%  +43.2%

Hey, out-of-state investors.  Do you see what I’ve been talking about for the last 3 years? 

While much of the country suffers through a housing correction not seen in many’s recent memory here in Kansas City the real estate investor can still find opportunity.  Yes, we have areas that are suffering greatly.  They are not areas that I’ve endorsed anyway.  Successful real estate investing takes study, analysis and local knowledge. 

And that is true whether you are investing in real estate around Los Angeles, Sacramento, Washington, DC, New York or right here in ole KC. 

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July 21, 2007 · 9:19 am

The Country Club Plaza: Kansas City’s Crown Jewel

There simply is no place more beautiful or romantic than Kansas City’s Country Club Plaza at Christmas. I’ve had the good fortune of seeing New York’s Rockefeller Center and Washington’s National Tree lighting ceremony.

But Kansas City’s one great contribution to Christmas is The Plaza. Photos just cannot capture the majesty of the place. And it’s not bad the rest of the year, too.

Last evening my wife & I along with our best friends decided we needed an upscale night on the town. There are plenty of entertainment and dining options in Johnson County, Kansas. But for romance and a truly world-class experience there is really only one place to go.

History & Flavor

The Country Club Plaza was first designed in 1922 to be the country’s first suburban shopping district. From the linked website comes the following…

The Plaza is an outdoor museum of romantic Spanish architecture and European art where people actually live and work every day amid its beauty. ~ Those who have traveled overseas might do a double take when they stroll past the statue of Sir Winston Churchill. Just steps away two of Spain’s landmarks–the Giralda Tower and the Seville Light — tower majestically on the horizon. Down the street in a quiet courtyard sits an original bronze of Pomona by Italian sculptor Donatello Gabrielli. Is this England, or maybe Spain, or could it be Italy? What a surprise to the traveler to find these magnificent European works of art in the heart of the Midwest — on Kansas City’s famed Country Club Plaza.

Modern Times

Today’s Plaza if filled with the finest shops you would expect to see in Paris, New York and San Francisco. Visitors from out of town on their first visit to Kansas City, are always amazed at the experience they are filled with upon first arriving at The Plaza.

International level hotels from big names and boutiques are closely located to and within the boundaries of this magnificent destination. National chain restaurants and local fair are intermingled with the shopping, fountains and street experiences. Pedestrians have the right of way on The Plaza. Really. With only a couple of stop lights interfering with the charm drivers are instantly educated to the fact that this place is one of a kind. Park the car and walk. No matter the weather.

Romance is easily discovered. Carriage rides of all shapes and sizes are available. And in the warmer months gondolas meander up and down Brush Creek. Or you can just stroll up and down the streets window shopping or admiring the beautiful fountains.

The Country Club Plaza in Kansas City is truly our area’s pride and joy. The proper balance of condos, close by homes and big business all work together to make this a spot you must visit during your lifetime. Don’t shy away from a visit to Kansas City. You will leave with a smile on your face.

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April 4, 2007 · 8:02 am

Homes for Sale in Olathe, Kansas: Homes That Are Really Moving

No. That headline is not hype or a sales gimmick. But it could read Overland Park, Kansas City, Leawood, or Rockville, Maryland. The facts are the facts. If you price your home correctly, it will sell.

There is absolutely nothing wrong with the current real estate market in and around Olathe, Kansas. It’s true that we are not experiencing 8%-10% growth right now. It is true that we have more sellers than buyers right now. And it is true that the mortgage money has gotten a little more difficult to get right now. But, hey, do you remember the late ’70’s and mid ’80’s? That, my friends was a tough, tough real estate market.

The Truth About Selling A Home In Olathe Right Now

  • Pricing…and condition are king (they MUST be in relation to one another)
  • Inventory is up…so your neighbor selling his house is now your competitor
  • Just because you refinanced to take a trip to the Bahamas doesn’t mean your buyer wants to pay for it
  • If you owned your house for 3 years or longer you made money on it 99.9% of the time
  • Forget about 2 years ago…concentrate on here and now
  • Work with a professional agent and they will help you get your home sold

The Truth About Buying A Home In Olathe Right Now

  • Inventory is up so you have a wider choice, and a little more time to make your decisions
  • Sellers are not giving homes away – the market is slower, people haven’t lost their minds
  • You are likely to do very well negotiating extra issues like warranties, repairs, condition, timeliness of closing, closing costs and treats like appliances, gift cards, etc.
  • Experienced or “wired” agents will know through networking which houses might be a little more of a good “deal” than others
  • While most sellers are not desperate, there may be some good foreclosures out there and if you have a little extra capital for repairs you can build some great sweat-equity

Folks, many people think and say we are in a bad or down market. The truth is, historically, when there is a 6 month supply of houses on the market for sale we call that “in balance”.
It’s just that so many people

  • Got used to hearing stories about what was happening on the west and east coasts
  • Came into the market in the last 5 years and thought that was the norm because they had little experience in any other kind of real estate market

Interest rates are still great! Ask anyone 44 or over about 17%, 19% or even 20% home mortgages. And yet, people still moved and still bought homes and still sold homes.

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March 31, 2007 · 2:02 pm

Olathe, Kansas and Single Family Home Real Estate Investing

Olathe, Kansas
Population 112,000

Median Family Income $78,630
Median Home Price $220,883
Median Rent $529
Median Age 30.5
Job Growth 20.01%
22% Renters

Olathe, Kansas is a great place for your real estate investing capital. First, it is a city on the grow. By 2050 one recent projection put our population right at 320,000. There is good disposable income here, an excellent school district and plenty of shopping and dining.

A recent perusal of Hot Pads showed that there are currently 9 single family homes for rent here in Olathe. (We all know there are more but most people do not know how to market their rental properties.) But these 9 should give us a pretty clear indicator of the trends of Olathe. The 9 homes have a combined value of $1,719,000. (per Johnson County, Kansas courthouse tax records) The asked rental values of these homes is $14,465 per month. This translates to a 8.41 Gross Rent Multiplier.

Olathe, Kansas is a major suburb of Kansas City and offers endless choices when looking to invest in rental property real estate. Olathe also has an ample supply of duplexes. So whatever your criteria when looking to invest your hard earned capital you should at least look at Olathe, Kansas. If you are from out of state I can point you towards some very good property managers.

Feel free to call or email me to find out more about single family homes for your real estate investment portfolio.

The numbers from above were gleaned from Hot Pads and CNN/Money.

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March 25, 2007 · 10:56 am

Overland Park and Olathe, Kansas Investment Property Market Updates

I spent quite a bit of time this morning putting together market reports for Overland Park and Olathe, Kansas multi-family homes used for investment purposes. The Overland Park report for income properties can be found here. The Olathe report can be found here.

If you are in the mood to find out more about the current market as it pertains to real estate investing, I would strongly urge you to read the reports. The reports consider only full duplexes, triplexes, fourplexes and apartments.

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March 22, 2007 · 1:17 pm

Olathe, Kansas – Poised for Housing Growth

There are many reasons to consider Olathe, Kansas as a place to live or invest. Quality housing. A school district that is second to none. Ample dining opportunities as well as shopping. Good road network. Safe communities.

If you are looking at Olathe as an investor an article in yesterday’s Kansas City Star had this to say;

The growth boom in Olathe is not expected to slow anytime soon, city planners have predicted. So much so, that according to their estimates, they expected Olathe’s current population of roughly 120,000 to grow to 325,000 by the year 2050.

Wishful thinking? Not by City Planner Bryan Dyer’s numbers.

“We might be off by a person or two,” he joked when discussing the numbers with members of the Olathe Planning Commission recently. “We know there is a strong interest out here, and as long as we keep roads and city services growing the population will continue to follow that trend.”

Dyer, who leads the city’s Long Range Planning Division, said he also expects the city to grow from its current 60 square miles to more than 90 square miles in the next 50 years.

Seems to me that is very good news for the rental property owner as well as the “regular” home owner.

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March 16, 2007 · 7:41 am

Real Estate and Life in Kansas City

Just some meandering links to help you see what I’m reading…

This article is found in today’s Kansas City Star. From my own personal view let me say that what the United States is allowing to go on in the Sudan is absolutely terrible. Genocide is unacceptable. This article that you can read is great news for this individual, however. A true success story.

The housing/foreclosure crisis that is quickly setting in will have impact on you. No question about it. Even if you have great credit just one or two foreclosures in your neighborhood will help to further bring down property values. Columnist Steven Pearlstein of the Washington Post has written a column that I really can’t argue to much about. Worth your time.

Conversely, if you have cash right now you are KING! The market is opening up to you in big ways. Loans favor the 80% LTV buyer. Sellers favor the buyer with cash to invest.

The Olathe Serve Day put on by volunteers from Olathe Bible Church (my home church), Indian Creek Community Church, Life Church and College Church of the Nazarene went splendidly. This article in the Olathe Daily News spells out the home building that went on. In addition, a team of volunteers changed oil and did car inspections for single mothers and widows and another group cleaned up and landscaped at least 10 of the local schools that I know of. Congratulations and thank you to all.

Kansas gears up tonight for their first round game against Niagra. Go Jayhawks!

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