Welcome to VP Property Management! Today, we’re diving into an exciting area for real estate investment—Johnson County, Kansas. With its highly desirable neighborhoods and proximity to Kansas City, Johnson County is a fantastic location for those looking to invest in rental properties. Whether you’re new to the area or just considering an investment, this post will provide you with insights into why Johnson County is a top choice for many investors.
1. Why Invest in Johnson County?
Johnson County is home to a wide range of demographics and offers great opportunities for real estate investors. It's a large and densely populated region, particularly in the northeastern and central parts of the county. While the average home price is around $600,000, this figure can be a bit misleading. There are still great deals to be found, especially in the lower price range, which can be ideal for rental properties.
The area is also known for having some of the best public school districts in the region. This makes it highly attractive for families, especially those with school-aged children. Because the schools are so highly regarded, the demand for rental properties is consistently strong, which is great news for property investors. Not only can you expect steady rental income, but the long-term appreciation potential is also solid.
2. Investment Options in Johnson County
When it comes to rental properties in Johnson County, your options vary based on your budget and investment goals. If you're looking to buy within the $150,000 to $250,000 range, you’ll likely find mostly land or condos and some houses. These might not be ideal for those seeking single-family homes, but they could still work as rental options depending on your target market and how aggressive you are wanting to be.
For larger investments, particularly duplexes or small multi-family units, the price will go up significantly. For example, a recent client purchased a duplex in the area for a little over $300,000. It’s a great property for cash flow, but buyers should be prepared for higher upfront costs and sizable down payments if they want to make the numbers work.
3. The KU Med Center Advantage
One standout feature of Johnson County is its proximity to the KU Med Center. Located right on the border of Kansas City, Kansas (KCK) and Johnson County, this medical hub attracts a steady stream of doctors, nurses, and medical students, many of whom stay in the area long-term. This creates a solid demand for rental properties nearby, particularly in areas like Westwood, which is within easy reach of the Med Center.
Whether you're looking to invest in a property that appeals to healthcare professionals or students, the location near KU Med Center is a fantastic draw. The draw of in-state tuition for those living in Kansas also adds to the area's desirability for medical students.
4. Suburban Towns with Big Potential
Johnson County has several smaller cities with unique rental opportunities. Areas like Overland Park, Roeland Park, Mission, Olathe, Lenexa, Shawnee, and Prairie Village are all highly desirable, offering excellent amenities, good schools, and easy access to highways, making commuting to Kansas City or the airport a breeze.
For instance, in Olathe, which is known for its family-friendly atmosphere, you can find properties that, while older, can be excellent investments with a little TLC. In these areas, you can typically find properties in the $200,000 to $300,000 range that can be rented for around $1,300 to $1,600 per month. While these may not provide the highest cash flow initially, they are great for long-term growth and appreciation.
5. The Benefits of Small Multifamily Units
If you’re looking for something that provides a good balance of cash flow and appreciation, small multifamily units are a fantastic option. Johnson County is home to numerous duplexes and small apartment buildings that attract a wide range of tenants. Whether you're interested in properties with 2, 4, or 6 units, you’ll find that multifamily investments can offer a reliable income stream, especially in sought-after areas like Fairway, Prairie Village, or Lenexa.
While the upfront costs may be higher for these properties, the potential for long-term appreciation and higher rental rates often makes them well worth the investment.
6. Considerations for Investors
As with any investment, there are a few key factors to consider before jumping in. In Johnson County, the higher property prices mean that you’ll need to be strategic with your financing. Whether you’re working with a 1031 exchange or simply need to park your money somewhere safe, it's essential to assess your financial situation before making a purchase. Also factor in your property management fees and interview a number of property managers to make sure you are comfortable with them.
Additionally, while Johnson County offers great schools and high demand for rentals, it’s important to factor in the cost of property taxes and other expenses. For example, while you might expect to rent a 2-bed, 1-bath home for $1,300 to $1,600 per month, the purchase price of such a property will likely be higher than similar properties across the border in Missouri.
7. Conclusion: A Bright Future in Johnson County
Johnson County, Kansas, offers a wealth of opportunities for real estate investors. From its family-friendly environment and top-tier school districts to its proximity to Kansas City and the KU Med Center, it’s easy to see why this area continues to attract renters and buyers alike. Whether you’re looking for single-family homes, multifamily units, or even land, Johnson County provides a diverse selection of properties that can fit a wide range of investment strategies.
If you’re considering investing in Johnson County or need help managing your rental property, VP Property Management is here to help. Reach out to us at 816-378-0007 or email me directly at eddie@kcvppm.com. We’d love to help you make the most of your investment!
To see the video of this blog you can click the link here. https://youtu.be/ZZ1Xs7gxUi8
Contact Us: For more information or to discuss investment opportunities, give us a call at 816-378-0007 or email Eddie at eddie@kcvppm.com. Let’s make your next investment a success!