We look for 5 key things in a market to ensure it is a solid long term investment location for our properties.

MIGRATION PATTERNS: We want to see more people moving in than moving out. This keeps the local economy strong and ensures that the rental demand will remain high and rents will increase over time.

RENT TO MORTGAGE RATIO 3 TO 1: We want the income from your rent to exceed the cost of your mortgage by a 3 to 1 ratio. Our average property rent is $850 and the average mortgage for that property is $275.

MULTIPLE INDUSTRIES; We want diversity in the market to offset potential struggles in large companies forcing catastrophic layoffs (think Detroit). Kansas City has several industries that make up a very diverse economic foundation. These include Retail, Health Care, Education, Government Services, Construction, and Professional Services.

TENANT VS LANDLORD STATES; Kansas City is very investor/landlord friendly. As opposed to other cities where it can take several months to evict a non paying tenant from your property, in Kansas City it can be done in 45 days.

RETURN ON INVESTMENT: Compared to the East and West Coast properties, Kansas City is a relative STEAL. Fully rehabbed and rented properties can be acquired for as little as $50K with rents as high as $900. Taking into account expenses you are looking at cash on cash returns of 15-20% and 35-50% for financed purchases.