Kansas City is the sixth-largest city in the Midwest with a metro population of 2.34 million. Kansas City real estate investing remains one of the most affordable options in the nation, thanks to the market’s growing and diverse economy. In 2023, Kansas City was ranked in the top 10 Hottest Real Estate Markets by Zillow, #8 Hottest U.S. Job Market by Wall Street Journal, and a Top City for Renters by WalletHub.
Many international companies call Kansas City home, including AMC Entertainment, Bayer CropScience, Boehringer Ingelheim, CEVA Animal Health, Clarios, Elanco Animal Health, Huhtamaki Americas, Merck Animal Health, Nestle Purina Petcare Global and VMLY&R. The area also boasts diverse educational institutions like the University of Kansas, the University of Missouri, and Kansas State University, which offer degrees in various fields.
Recent openings and expansions in the metro area span various sectors, including temperature-controlled warehousing, biotechnology, energy solutions, digital health, aerospace systems, precision manufacturing, industrial battery assembly, and food distribution. Companies like Google (data center), Honeywell (aerospace systems), Walmart (beef packaging and distribution center), and Panasonic (EV battery manufacturing) have recently opened or expanded operations in the area.
Kansas City’s real estate market offers a good combination of current cash flow and appreciation potential for investors today.
Kansas City Investment Opportunity Quick Facts
This information reflects typical properties purchased by RealWealth investors in Kansas City. These numbers are estimates, and the actual property prices and rents will vary based on current inventory.
- Investment Objective: Medium cash flow, medium appreciation
- Types of properties for sale: New construction single family, duplexes, and fourplexes in A or B neighborhoods
- Average home price: Prices $285,000 – $550,000 per unit
- Average monthly rents: $1,750 – $3,700 per unit
Why invest in Kansas City real estate
There are a variety of reasons why you would invest in Kansas City real estate.
- Affordability: The average home price in the Kansas City metro area is just over $307,607, which is 14% more affordable than the national average.
- Decent Appreciation: Homes in Kansas City have appreciated by 105% since 2014. This is 14% higher than the national average.
- Population Growth: Kansas City’s population has grown by almost 12% since 2010, 20% faster than the national average.
Kansas City Investment Real Estate for Sale
Check out pro formas for properties sold by the Kansas City turnkey property team below. This team focuses on new construction single family, duplexes, and fourplexes in A and B neighborhoods.
Frequently Asked Questions about Kansas City, MO
Is Kansas City a good place to invest in real estate?
Kansas City offers a genuine balance of cash flow and appreciation in a metro that has received significant national recognition. In 2023 alone it was ranked in the top 10 Hottest Real Estate Markets by Zillow, the number 8 Hottest U.S. Job Market by the Wall Street Journal, and a Top City for Renters by WalletHub. The average home price of $307,607 is 14% more affordable than the national average, homes have appreciated 105% since 2014, and the population has grown 12% since 2010. The economy is anchored by major international companies across agriculture, biotech, logistics, and manufacturing.
What should I know about real estate investing in Kansas City?
Kansas City is the sixth largest city in the Midwest with a metro population of 2.34 million. It is a hybrid market: medium cash flow and medium appreciation. RealWealth’s team focuses exclusively on new construction single-family homes, duplexes, and fourplexes in A and B neighborhoods, one of the few markets in the portfolio offering fourplex investment options. Duplexes in Wichita, Kansas (within the team’s coverage area) are priced $425,000 to $475,000 with rents of $3,200 to $3,600 per month, targeting 6.5% cash on cash returns with minimum capital of approximately $115,000.
What types of turnkey investment properties are available in Kansas City?
RealWealth’s Kansas City team sells new construction single-family homes, duplexes, and fourplexes in A and B neighborhoods. The team’s coverage also includes Wichita, Kansas, where duplexes are priced $425,000 to $475,000 with rents of $3,200 to $3,600 per month. The Kansas City duplex option is priced at approximately $540,000 with rents of $3,700 per month. All properties are new construction, meaning minimal early maintenance costs and fast lease-up. Members can view pro formas at realwealth.com/properties.
What cash flow can I expect from Kansas City investment properties?
Kansas City duplexes target a 3.5% cash on cash return at $540,000 with rents of $3,700 per month. Wichita duplexes within the same team coverage area target 6.5% cash on cash at $425,000 to $475,000. The multi-family focus of the team gives investors the option to generate significantly more income per property than a single-family-only market. Members can review full pro formas at realwealth.com/properties after signing up for a free membership.
Can I invest in Kansas City real estate from out of state?
Yes. All properties from RealWealth’s Kansas City team are new construction, which reduces the renovation risk that can complicate out of state investing. The team handles construction, property management, and tenant placement for remote investors. Sign up for a free membership and connect with the Kansas City team through the Properties tab, or schedule a complimentary strategy session.
What are property taxes and landlord laws like in Kansas City?
Kansas City spans Missouri and Kansas, and properties are available in both states. Missouri and Kansas both have state income tax. Property taxes run approximately 1% annually across this market, which is relatively moderate. The Wichita properties in Kansas fall under Kansas state tax law. Kansas City is generally considered landlord-friendly, particularly in the suburban communities where the team focuses.
What makes Kansas City different from other RealWealth markets?
Kansas City is one of the only RealWealth markets offering fourplexes, a property type that maximizes income per investment while still being manageable for individual investors. The team’s coverage also extends into Wichita, Kansas, effectively giving investors two distinct metro options (Kansas City and Wichita) within a single team relationship. The concentration of international companies is also distinctive: Bayer CropScience, Nestle Purina, Merck Animal Health, Google, Honeywell, and Panasonic all have significant operations in the metro, representing an unusually international corporate base for a Midwest city of this size.
How do I get started investing in Kansas City real estate with RealWealth?
Sign up for a free membership to access Kansas City and Wichita pro formas including the duplex and fourplex options. A strategy session can help you evaluate whether the multi-family opportunities here fit your capital and income goals.
