I spent Saturday looking at lofts in downtown Kansas City. Not as investment property but as corporate housing. See, there is a Chicago based business with a branch here in Kansas City that is spending too much on hotel bills. So why not go ahead and buy a loft?
As investment properties the loft and condo market in downtown Kansas City still leaves me wanting. For instance, I was told that a condo "really cash flows" and that an investor she works with is really happy. So naturally, I inquired as to details. I was told that the place costs $136,500 and is renting on a two year lease for $850 per month.
To me, that is not a great investment from and investment property point of view. Go ahead and work the numbers and argue with me. But I'd rather find you something around Kansas City (and if you are patient you definitely can) that rents for $700 and you purchase it for about $85,000 to $90,000.
But going back to what we were doing...
The investment for this corporation makes complete sense. They are paying cash. They would otherwise continue to drop at least the same amount of money on hotel bills. And since this is a well established company with a well established presence in Kansas City they will own this property for years and years and years.
And it brought me back to when I was in my twenties with my young bride living in a high rise in Bethesda, Maryland. (Just outside of DC.) I love lofts and condos. I love stepping out the front door and into a neighborhood full of life. Pizza parlors. BBQ. Mexican food. (Can you tell the River Market is where I'd buy one?)
