Ben Edsall

It's official Kansas City was rated as one of the cheapest places to rent in the Nation.

http://www.forbes.com/2008/01/07/rentals-US-expensive-forbeslife-cx_mw_0107realestate.html

www.Frobes.com is reporting the latest results of the Marcus & Millichap report.

"Despite the low rents, Kansas City's has only a 5.7% vacancy rate. according to the report renters should expect to pay only 3% more this year because new construction will be flat. There were only 1,200 new rental units on the market this year. By the end of 2008, that number is expected to drop to 500, based on estimates from Marcus & Millichap."

America's Most Expensive Communities for Rent

1. New York, N.Y.
2. San Francisco, Calif.
3. Boston, Mass.
4. San Jose, Calif.
5. Los Angeles, Calif.

America's Least Expensive Communities for Rent

1. Columbus, Ohio
2. Indianapolis, Ind.
3. Kansas City, Mo.
4. San Antonio, Texas
5. Cincinnati, Ohio

I can tell you there are several reasons for this, as the areas top property management company we know the Kansas City market, we also know the good, the bad and the ugly.

The Good:

• Kansas City has unbelievably cheap real estate, some of my investors are finding homes for as little as $2,000, replace the plumbing with Pex, throw down some carpet, add some paint and we can get you $450 a month.
• Many Kansas City suburbs offer never before seen investment opportunities, Lee's Summit, Raytown, Independence and some other local towns have seen massive devaluation due to the huge number of foreclosures.
• Communities like Gardner, KS offer huge future potential. Follow the link: http://www.turnkeyproperties.org/resources_details.php?id_art=73191&img_id=0
• As more people move into foreclosure, they will be forced to rent.
• Ten years is typically the standard for someone who has faced foreclosure to get back on track and start planning to move toward home ownership again.
• Many of these folks in foreclosure are good people, who will make ideal tenants, they just got into stupid loans and lost their home.
• Buy low, sell high! That old axiom has never been more timely. While there is a glut of homes on the market, you can often name your price. Buy now, rent and when the market comes back sell and reap the profit.

The Bad

• While certain areas may bring respectable rent amounts, most of Kansas City is so rife with crime that no-one who can afford to move to the suburbs is willing to stay. http://www.crimereports.com/map/index/?search=+Kansas%20City+MO
• Kansas City has it's own 1% earnings tax on all residents, or at least the ones that work.
• The Schools SUCK! They've been put into receivership, taken over by the state, had their accreditation removed and yet the residents keep electing the same morons to run the school district.
• The city and the current mayor seek to punish investment in the City. Attacking landlords, deriding out of town investors and "absentee owners", they even tried to eliminate the notification of codes violations allowing the city to impose fines, without giving home owners time to make repairs.
• The Housing Authority of Kansas City is a colossal, glittering jewel of incompetence.

That's the Bad, Here's the Ugly:

• Real estate scammers and con artists have over-inflated values and bankrupted hundreds of investors, while this is not limited to Kansas City it has taken it's toll
• Vacant homes are stripped, devalued and destroyed.

So is Kansas City a good investment strategy? The answer is complicated, but you should consult a property manager for your answer. Get your investment property evaluated by a qualified property manager who knows the market. Don't trust your buyer's agent, they get paid to sell you something, pay a few hundred bucks and save yourself tens of thousands.

The reality is that most two bedrooms in KC will not bring more than $450 a month, we manage several that simply won't bring even $400. The suburbs offer much higher rents and much shorter vacancy times, because people actually want to live there!

If you can buy really low in KC, you can deal with the political anarchy, the taxes, failing schools and the crime. If you don't want to deal with those hassles look to the suburban Kansas City market.

http://www.turnkeyproperties.org

I'm pretty excited to have one of my favorite local haunts open again. Santa Fe Inn located at 6600 Blue Ridge Blvd. was a regular spot for many of my neighbors. The restaurant opened in the early 70's and was frequented by many Kansas City Chief's players and staff.

I've heard stories of War Paint, the Kansas City Chiefs mascot being ridden through Santa Fe Inn after a Chiefs victory in Kansas City. Warpaint was a paint Pinto horse who served as the mascot for the Kansas City Chiefs from 1963 until 1989. Warpaint would run the length of the field after a chiefs touchdown with his rider "Chief" in full Indian Chief garb. After the Chiefs won Super Bowl IV, Warpaint led the parade.

I've ridden with Mike Murphy and old War Paint in the Kansas City Cattle Drives; War Paint and Mike Murphy are retired now.

A few years ago the founder of Santa Fe Inn retired and moved to Florida to play golf, the restaurant was purchased and turned into Mark's Santa Fe Inn. Mark made a number of poor decisions and it wasn't long before he was out of business and the spot was closed.

Recently reopened by the renowned JL Stephenson, of Stephenson's Apple Farm fame, the restored Santa Fe Inn is cleaner, brighter and ready for business. I plan to take my staff there today to sample the fair.

I stopped by and picked up a menu and there it is that world famous Stephenson's brisket is back and ready to be enjoyed.

I hope to see you there, they just opened Labor Day, 2008.

I have the great fortune of having my Real Estate office only a few blocks away!

Of course the restaurant is in KC so we can no longer enjoy a fine cigar with our beverage, so we will have to stand in the parking lot, which is actually in Raytown, Mo to enjoy our stogie!

I was just checking out my YouTube account tonight, I was fascinated by the results. I've posted several videos, most of them for rental property in Kansas City. I get a lot of visitors. The most interesting thing is the demographics of the viewers.

The graph shows that 86% of viewers were female, does that mean that females are the ones looking for a new home?

A few years ago NAR reported that 84% of home searches begin on the Internet. But does this mean that 86% of that 84% are female? It is quite apparent that females are searching YouTube for rental property.

This really does make sense though, it has long been the real estate axiom that men shop, but women buy. Thus the notion of improving kitchens and bathrooms improve your chances of sale. Maybe we should spend less time focusing on garages and out-buildings and more time on details, bedrooms and kitchens.

I know that sounds terribly sexist, but I married a Cowgirl; she will want to see the barn too! But if the bathroom and kitchen aren't up to snuff, an air conditioned padded floor barn with heated floors won't make any difference.

Not particularly definitive, but very interesting none-the-less.

Marketing to the female of the species may pay off.

So if your looking for a home in Kansas City. Check YouTube, you may find it. I guess I need to start considering who is viewing.

http://www.turnkeyproperties.org

http://www.youtube.com/user/oldfatcowboy

Do real estate and politics mix? I don't know, but politics can drastically affect our real estate careers. If you're not paying attention to politics your real estate, and even your real estate career can be devastated!

So what to do? Not everyone is cut out for running for office, not everyone has any desire to be a politician. But, you can have a say, politicians pay attention to noise, the squeaky wheel gets the grease!

NAR and your local Real Estate board will usually notify you of pending legislation that affects your industry. Pay attention, send letters, call your representatives, send emails. You do have a say and you do have a voice.

As a licensed real estate professional you are part of the process, if you remain silent, you allow circumstances to guide you.

Sometimes we are just overwhelmed by the sheer magnitude of bills and onslaught of political rhetoric. You must get involved if you are going to effect change, if you are going to protect your livelyhood.

Vote for me, Ben Edsall, 17th Ward Committeeman, Jackson County, MO. Kansas City. I am not ashamed of my convictions, I am not afraid of my party affiliation I am a conservative, I am a Republican!

God Bless America! God protect our heroic troops, God protect us!

Ben Edsall.

I got a call today from a buyer, a savvy buyer who is looking to purchase apartments in Kansas City . I talked with her at length, her goal is to own less than 5 years and liquidate to move up. Currently looking for about a twelve unit property of more, her goal is to leverage.

Good strategy, moving up is a great plan, so I am looking for about twelve units in the KC market that will provide upside potential. None of the usual over-inflated rent rosters, none of the "projected" income crap that I see everyday. If you have a small multifamily property that fits this criteria, give me a call 816-313-8876.

She mentioned the Northeast Kansas City area, Northeast Kansas City is a diverse, complicated market. There are areas of intense crime, drugs and prostitution are a real issue. We have managed several properties in Kansas Cities Historic Northeast District. We still manage a few apartment complexes there and many homes. Northeast Kansas City also has a very active culture of involved citizens who care about their neighborhood and several very active neighborhood associations.

Independence Avenue has been known for drugs a prostitution for decades, there seems to be little effort to change that. However comprehensive, involved property management can make a difference in a neighborhood and in a properties value.

We have our staff trained by the Kansas City MO. Police Department in Crime Free Multi-Housing. We know how to make a property in a troubled area succeed and prosper. There are good people who need affordable housing, you just have to find a way to weed out the creeps.

So if you have a small multifamily property in KC that you are interested in selling call Ben at Turn-Key Properties LLC at 816-313-8876 and tell me about it I may have a buyer.

Ben Edsall
Broker-Accredited Residential Manager
Turn-Key Properties LLC
816-313-8876