Kansas City Missouri Investment Properties

Why Invest in Kansas City, Missouri Income Properties?

The Kansas City rental market presents a great opportunity to real estate investors. The city ranks in the top 50 on the list Overall Real Estate Prospects from PWC’s Emerging Trends in Real Estate Report 2020. Due to the city’s high percentage of renters, lower than average property prices, and steady property appreciation, the rental market is expected to continue thriving in the coming years.

You can’t beat the city’s location either. It’s located within 250 miles of the center of the United States, making it a prime location for transportation, manufacturing, and distribution. Here, you’ll also find a cost of living and an unemployment rate that’s lower than the nation’s average.

How to Invest in Kansas City, MO Turnkey Properties

Turn to Jason Hartman for the resources you need to locate and purchase the best real estate properties in Kansas City. Kansas City’s real estate market is linear with steady appreciation; you won’t experience the large spikes and declines of a cyclical market.

Our experienced investment counselors can provide you with the necessary guidance to select homes in more desirable locations within city limits. Reach out to us to be put in touch with an investment counselor who can help you reach your real estate goals.

Quick Facts About the Kansas City Market

• Kansas City is ranked #49 in Best Places to Live and #103 in Best Places to Retire by US News
• Kansas City, Missouri is the 38th most populous city in the USA with 505,198 residents
• 46.7% of Kansas City residents are renters rather than homeowners, which is higher than the nation’s average of 36.2%
• Housing costs in Kansas City are 22% lower than the national average, and utilities are 2% lower.
• Kansas City ranked #16 on the Cheapest Places to live by US News
• The median monthly rent is $894 according to US News
• The average household income in Kansas City is $51,630, making the city a better value than similarly sized metro areas

Kansas City, Missouri Economy

Kansas City’s average unemployment rate over the past year (July 2019 to July 2020) is 5.16%, which is lower than the national average rate of 6.3%. This indicates a high percentage of employed individuals with a reliable income.

Professional sports teams, military bases, a vast healthcare network, and several colleges contribute to the city’s strong economy. To further encourage economic growth, The Kansas City Area Development Council also offers incentive programs to reduce costs for new businesses. The local tax structure makes relocating to Kansas City lucrative as well.

Kansas City also has a living wage initiative to encourage businesses to raise their minimum wage to $15 by 2022. The goal is to ensure all workers can earn the minimum income needed to afford food, housing, and essentials.

Kansas City, Missouri Employment

Kansas City, MO, has low unemployment rates and a wide variety of employment opportunities. According to the Bureau of Labor Statistics (BLS), an estimated 549,500 people work in Kansas City, MO, with another 452,000 employees nearby in Kansas City, Kansas. The biggest industry here is trade, transportation, and utility, followed by professional and business services.

In the city, you’ll find the headquarters of one Fortune 500 company, Cerner. This healthcare company employs 13,000 people in Kansas City, MO, and brings in $5.7 billion each year. Other large employers include Children’s Mercy Hospitals & Clinics, the IRS, the University of Missouri-Kansas City, and Hallmark Cards, Inc.

Healthcare Industry

The Greater Kansas City, Missouri area is home to 82 hospitals, urgent care facilities, and medical groups. In the city alone, you’ll find more than 110,000 workers in healthcare operations.
Military Installations

The Marine Corps base in Kansas City is no longer active, but the state of Missouri still has one Army base and one Air Force base. Military installations like these typically employ a significant number of renters with a reliable income.

Logistics

Seeing as Kansas City is the closest large city to the geographic and population center of America, it’s also one of America’s largest logistics hubs for intermodal transportation, distribution, warehousing, and manufacturing.

Interstate 435, the second-largest beltway in the country, surrounds the city, and many of the busiest U.S. interstate highways meet up in Kansas City too. This includes I-29, I-35, I-49, and I-70. Kansas City is also the second-largest rail transportation center in the nation, providing long-distance passenger rail services and freight transport. The Kansas City International Airport and Charles B. Wheeler Downtown Airport provide air transportation for passengers and freight as well.

Education

Kansas City is home to 10 school districts and a total of 166 public schools and 53 private schools.

Entertainment and Activities

Sports, arts, and entertainment opportunities keep Kansas City residents and tourists occupied. Families enjoy spending time at Legoland, Sea Life aquarium, and the Kansas City Zoo too. The city is even home to three professional sports teams: the Royals baseball team, the Chiefs football team, and the Sporting soccer team.

More than 30 museums provide indoor entertainment, including the Nelson-Atkins Museum of Art, the National Collegiate Basketball Hall of Fame, the National World War I Museum and Memorial, and The Money Museum. Three professional theater companies and a children’s theater company lie within city limits too.

Universities and Colleges

Kansas City offers no shortage of college students and visiting professors who need rental properties. The city itself and the surrounding area house more than a dozen colleges/universities. The University of Missouri—Kansas City alone has an enrollment of over 11,300.

Frequently Asked Questions

What is unique about Kansas City?
In 2016, Kansas City, Missouri, was named the most connected city in North America thanks to its Smart City initiative. The initiative included a new streetcar system downtown, free public Wi-Fi spanning 54 downtown blocks, 125 smart streetlights, and interactive kiosks.

Is Kansas City landlord-friendly?

Yes, Kansas City (and the state of Missouri in general) is a landlord-friendly area with fair laws for landlords and tenants.

According to Missouri’s Landlord-Tenant Law, landlords cannot evict tenants without a court order. They can pursue eviction quickly though in cases of rent nonpayment, lease violations, or criminal activity.

Missouri also forbids rent control policies. This gives you, the landlord, the ability to charge what you want for rent. You can also increase rent without justification or advanced notice. However, security deposits cannot exceed two months of rent.

Additional Resources

Kansas City Housing Authority: http://www.hakc.org/
Kansas City Chamber of Commerce: https://www.kcchamber.com/