Category Archives: Kansas City

Going To Kansas City? We’re Not Miserable ;)

KCIWhen I meet with out of state investors who have come to Kansas City for the more affordable investment properties our airport invariably comes up somewhere in the conversation.  Yes, it’s quite a ways from downtown Kansas City.  And yes, it’s 42 miles from my home all the way down in Olathe.

However, it’s also extremely convenient for travel.  Today’s Kansas City Star reports that we are the third least miserable airport to travel in and out of.  (Sorry to all the English teachers reading this.  I realize I’m technically not supposed to end a sentence with a preposition.) 

Getting back to comments by traveling investors, they all want to leave to catch their plane about two hours early.  Uh, this is Kansas City’s KCI airport we’re talking about.  (MCI to you pilots.)  There are no lines.  No traffic jams.  I usually arrive less than 45 minutes in advance and I’ve never once broke out in a sweat worrying about catching my flight. 

Kansas City has a lot of advantages for the real estate investor.  And another one you may not have considered is the ease of travel.  Heck, we’re only a round trip airline flight away from your next income property.  Check out today’s Southwest Airlines round trips for 30 days from now:

From Los Angeles:  $284
From San Francisco:  $300
From New York:  $273
From Washington, DC:  $284

Is this a big expense when you are purchasing your next property?  How often do you “drive-by” anyway?  Heck, inspections cost more than that. 

Besides, if you come out, I’ll buy the BBQ. 

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Kansas City: Two States, Two Cities, Much Confusion

Editor’s Note:  I’ve been receiving quite a few more than usual phone calls from out-of-starters regarding Kansas City investment property.  There is always a little confusion as to exactly what is, or more-rather, where is Kansas City.  So I thought I would reprint this from another blog I work on occasionally.  Though I have updated and added a few items. 

***  ***  ***  ***  ***Confusion about Kansas City

People ask me all the time about Kansas City.“So is it in Kansas?  I’ve heard it’s in Missouri.”

Where are the Chiefs and Royals?

In fact, I just received a comment from Bill Roberts as follows;

Chris, I was hoping that you were going to talk about real estate in KC or even that little town in Kansas you call home. No such luck. All you want to do is add to the congestion in the sky. Is that airport you are pushing in Kansas? I heard that Kansas City, Missouri didn’t even have an airport. They use one in the next state over. Is that true?

Bill Roberts

While the words are not always exactly the same…the confusion is.  Kansas City is at the front door of fly-over country and we know it.  So I’m going to try and clear this up a little bit for you and have a little fun at the same time.  As we do, please remember that these two statements about Kansas City are popular and telling:

– It’s a great place to live but I wouldn’t want to vacation there.

and

– They come to Kansas City kicking and screaming and the leave kicking and screaming.

Kansas City mapAs you can see from the map (click on map for larger version) the greater Kansas City area is split in two by a state line.  On the southern part of the map you can see it’s nothing more than a straight line, or more accurately, State Line Rd that divides Kansas City, Missouri from it’s Kansas suburbs of Mission, Prairie Village, Leawood and others. (Much like Western and Eastern and Southern Avenues in Washington, DC.) Literally, on one side of the street you are in Missouri, the other side Kansas.

To the north and then west you can see that it is the Missouri river that divides Kansas from Missouri.  As you will see if you look carefully, the Kansas City airport is actually north of Kansas, not east.

Those are the facts…this is the truth.

Border WarThe facts are that Kansas and Missouri are divided by nothing more than a two lane street or a river no wider than a 100 yards.  The truth of the matter, however, is that the two states couldn’t be more different.  Ask anyone from the area.  Missouri or Kansas.  They’ll all tell you they are from Kansas City.  But at home they are quick to make a distinction between the two states.  And what makes it great is that both sides of the state line knows theirs is the best!  Creates quite a rivalry to this day.

College basketball is full of rivalries.  Duke v Carolina.  Georgetown v Syracuse.  UCLA v USC.  But really, Kansas v Missouri is an actual rivalry.  You see, what other rivalry had folks that shot at each other?!?!  From the very beginning the states were different politically.  Missouri was pro slavery.  Kansas a Free State.  Many a raid was conducted across the border from both states.  The most famous being Quantrill’s raid on Lawrence where the Missourians burned Lawrence, future home of the University of Kansas.

Missouri tends to follow more with the Democratic Party during the elections.  Kansas sides with the Republicans.  Kansas City…on the Missouri side has the amenities big cities want and need:  Stadiums, pro teams, art museums, galleries, urban lifestyle.  Kansas is more suburban.  Allowed to grow wealthy because it’s residents don’t have to support all that infrastructure.

Did you catch that last sentence?  KCMO doesn’t like the Kansas cities because they don’t feel we pay enough in taxes to help them support themselves.  Kansans answer if we wanted to pay for those things we’d live in KCMO.  And besides, the State of Missouri and the city of Kansas City, MO impose an employment tax on those that cross the border.  So we are paying for it.

Now, this is all oversimplified but basically on target.  Kansans stay on the Kansas side when deciding where to live for themselves.  Missourians do the same.  Now as far as real estate investing is concerned I would (and do) invest on either side of the state line because I go where the numbers make sense.

And yes, there is a Kansas City, Kansas as well.  (Look at the map.)  But in general when a person says he’s from Kansas City he could mean anywhere in the area.  For you folks looking in from the outside when you say Kansas City, you probably mean the one in Missouri.

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Kansas City’s World War I Memorial

The National World War One Museum at Liberty Memorial is located in Kansas City, Missouri.  If you are a student of history it’s a must see.  If you are grateful for the sacrafices made for this country, it’s a must see.  If you are a Kansas Citian, it’s a must see.

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Kansas City Perceptions

Los AngelesSpending four days in Los Angeles was quite an experience.  I’ve written briefly about my trip there in previous blogs.  What I haven’t told you was the curiosity that west coast real estate investors have with Kansas City.  And their perceptions of Kansas City can be very eye opening.  Some are rooted in fact.  Some are rooted in the very fiction created on film there.

I have a few clients that are Los Angeles based.  They own duplexes, fourplexes and single family homes.  Three have visited the city.  One hasn’t.  And still others either grew up here or have a brother, sister or whatever that lives here.  Still, we are all products of our environment.

When I lived in Suburban Maryland (DC) I thought nothing of commuting thirteen miles to work…and spending an hour and fifteen minutes in doing so.  Nor was I ever surprised by self-important people or the endless amounts of wealth on display.  Power and hurried-ness are very much the culture in Washington. 

In LA I could feel the laid back attitude (unless behind the wheel) within an odd mixture of electricity, money and fame.  I spoke with working folks who can’t afford their own homes, the real estate investors who simply cannot afford to buy local rental properties and those investors who have watched their equity positions shrink drastically over the course of the last 12-15 months. 

Kansas CityKansas City is more than 1/2 a continent away from those two cities.  It’s another world.  We are not backwards here.  Nor are we the cow-town depicted in the movies.  But we are a product of the heartland.  A place where nothing too exciting ever happens but where hopes and dreams grow and are nourished with care.  Many of our young grow up and do great things in Kansas City.  Many more move on to other parts of the country to seek fame and fortune.  That’s just part of life here.

Investing in real estate in Kansas City is different, too.  As we would read about double digit appreciation all we could do was sit and wonder.  And just as distant to Kansas City is the bursting real estate bubble where values fall in large percentages to the home’s value.  

To be sure we get our appreciation and we get our buyer’s markets.  But with jealousy and then relief we watch those on the coasts and realize what we have here.  And what we have here is:

  • Stable real estate growth.
  • Very predictable appreciable growth patterns.
  • Excellent school districts.
  • One of the most sparsely populated metropolitan areas in the country.
  • Excellent highway system that other cities dream of.
  • A solid mixture of technology, manufacturing, industrial, service and transportation jobs.  In fact, every Fortune 400 company has a branch here in the Kansas City area.
  • Disposable capital that growing companies dream of.
  • A good, educated work force.
  • Rent ratios and vacancy rates that make a real estate investor drool.
  • Low crime rates.
  • A family orientated quality of life.

SprintMany of those listed bullet points were the answers to the questions I was asked throughout my trip.  Real estate investors, especially the smart ones, are after more than just the Cap Rates and Rates of Return.  They want to know who their tenants will be and the likelihood that those tenants will be stable enough to buy them a property. 

I think that if you’ll come to Kansas City you’ll like what you find.

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Thanksgiving in Kansas City & Misc Real Estate Thoughts

It’s a holiday weekend and so I really don’t feel like getting into the nitty-gritty of real estate investing here in Kansas City. However, I do want to bring you these tidbits, real estate related and other wise. And don’t forget. Tonight is the night they turn on the Plaza lights. Simply no more romantic place on Earth than the Country Club Plaza at Christmas.

NOTE: I “borrowed” the photo from KC Plaza Flights. Take a look and take a trip that you will never forget.

***

I posted this over at my ActiveRain blog since Google seems to pick it up quicker. The link will take you to a fourplex for sale in Belton that will make Coasters (as Lani call them) wet themselves. That’s right, a Kansas City area investment property that costs around $155,000 and makes about $1,600 in gross monthly rents and it’s in a neighborhood I think is on the grow. Eat your heart out Los Angeles.

***

Like Jay Thompson over at The Phoenix Real Estate Guy I too am proud that my 15 year old son just got his first “real” job. He’s raked leaves, mowed lawns and the like but wanted desperately to get out into the job world. He’s going to be working for Chick-fil-A, a good Christian company that’s closed on Sundays. (Can you believe it?)

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Two days ago I was showing an apartment in Olathe to a real estate investor and it was 78 degrees. I had my windows rolled down and a golf shirt on. Yesterday, it snowed! Not much. But it snowed! How fast everything can change.

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The Kansas Jayhawks are in for quite a weekend. First, on Saturday, is the Border War with Missouri that has been aptly renamed Armageddon at Arrowhead. Again, if you are not from this region you probably cannot understand the animosity that exists between the two schools. It’s gonna be something. Go Jayhawk football!

Then on Sunday evening our Jayhawk basketball team takes on Arizona over at Allen Fieldhouse. Basketball is woven into the very fabric of Kansas culture. So anytime you play a game against such a quality opponent you take notice.

Here’s hoping MY Kansas Jayhawks go 2-0 for the weekend!

***

Real estate investing doesn’t have to be rocket science. I’ve received several phone calls over the last couple of weeks from people saying they are confused and don’t know which direction to turn.

My advice is to not spend thousands and thousands of dollars on guru knowledge. Just read this blog, Christopher Smith’s Equity Scout blog and Jeff Brown’s blog. You’ll get better advice and it’s free. There are a few others I could mention, as well.

Happy Thanksgiving. Happy investing.

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More Kansas v Missouri

Providing both Kansas and Missouri win this weekend in football I can see next week as one of the ugliest weeks in history around the Kansas City area. I was just emailed this shirt.

It’s not the Border War. It’ll be Border Armageddon!

I want to encourage your trash talking here! This doesn’t all have to be about real estate investing in Kansas City. We can have a little fun, too. Right? Especially after Kansas whoops up on you from Mizzou!

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Kansas & Missouri: The Border War

People throughout the sports world think they understand rivalries. There’s Michigan v Ohio State in football. Duke v Carolina and Indiana v Kentucky in basketball. Boston v New York in MLB.

But there is nothing like the rivalry there is between Kansas & Missouri. Nothing. Sure, we haven’t won as many championships between the two schools. But each and every competition between the two is called the Border War. And while ESPN can pimp all they want to the Duke v Carolina basketball rivalry, it is Kansas v Missouri that stands out in front.

Don’t like each other? Seriously, what two other rivalries had great-grandparents that shot at each other? That burned each other’s town to the ground? And look! The Missourians are still proud of it. (For those of you that don’t know, that’s Lawrence, KS burning on the shirt. Nearly 150 men of Lawrence were left dead or dying that fateful morning after Quantrill’s Raid.)

I credit the Missouri nation for their creativity and success this year. It’s one of the reasons I love to “hate” them. And I know they feel the same way. 🙂

***
By the way, the most creative shirt floating around Kansas right now refers to our successful football program…at least this year.

Our coach beat bulimia.

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