JoCo investing ideas

In this episode of The Kansas City Real Estate Podcast, we discuss the Sharper Image, Trump Steaks, Starter Homes, cameras, and Home Prices in Kansas City. Bryan talks about the Sharper Image and how much he loved going there to look at the interesting products. We also take a look at Trump Steaks since they were sold at The Sharper Image. 

We then move on to starter homes in the Kansas City area and explore whether or not they are a good option for first-time home buyers.

Finally, we take a look at the current state of the housing market in Kansas City and discuss whether or not home prices are increasing or decreasing.

Note: This episode was initially recorded in 2022, and has been updated for a better experience. 

 

This Episode's Free Resources for Real Estate Agent

Free House Flipping Spreadsheet

 

 

One of the perks of hosting a podcast with someone like Joe Stephenson, a seasoned REALTOR® in Kansas City, is that you can’t help but soak up some serious knowledge. This guy has been in the game for over 20 years, so when he talks about real estate, you listen, especially when the topic is property investing.

During one of our recent episodes, we dove into several corners of the real estate market, from starter homes to vacation rentals, and sprinkled in some laughs along the way, of course. Here’s a summary of the investment lessons and insights I picked up from our chat.

The Realities of Low-Cost Homes

We started with the fantasy of buying a home under $50,000. Sounds like a steal, right? Well, it turns out those homes either need a ton of work or aren’t even close to being livable. Joe talked about walking into one house where the roof had a gaping hole—it was way closer to a set from a post-apocalyptic movie than a “home sweet home.”

“Most of these homes are cash-only deals,” he said. Banks won’t touch them because the condition is just too bad. While that might scare the typical buyer, it doesn’t scare investors or handy buyers who see potential in fixing them up. It's a tough game, though. You walk into these places and have to figure out if it’s worth saving—or if you’re just buying yourself a headache.

Longer Listings & Market Perception

We also touched on the idea of listings that seem to hang around forever. Have you driven past a property with the same “For Sale” sign in the yard for years? It turns out that isn’t always a good look.

Joe explained how prolonged listings can actually hurt an agent’s reputation. “You want to show people you can sell the property, not just park your sign in a visible yard.” It’s a balancing act—you want the exposure, but at the end of the day, closing the deal is what counts.

 

Investors Rule This Space

If you’re dreaming of buying a fixer-upper for cheap, you’re probably up against seasoned investors. Joe pulled back the curtain on how this crowd operates. A lot of them snag properties through wholesalers, who find deals off-market and resell them before the average buyer even knows about them.

“A lot of these homes don’t even hit the MLS,” he shared. If you’re serious about investing, you’ve got to play the game differently, know your strategy, and figure out your niche—whether that’s flipping, long-term renting, or holding onto a property for appreciation.

Real Estate Is a Solid Inflation Hedge

Here’s something I didn’t fully appreciate until this conversation—real estate holds up shockingly well against inflation. Joe broke it down simply. “If you’ve got $100,000 in cash, it’s losing value as inflation creeps up. But if you buy a $100,000 house, it’s probably keeping up with inflation—or even beating it.”

It made so much sense. While cash sits and loses buying power, a house is not only a tangible asset but also something people will always need. That stability is huge.

The Short-Term Rental Market Is Hot

One of my favorite parts of the conversation was when we talked about vacation properties and short-term rentals. Joe's got some great insights into how areas like Lake of the Ozarks or Kansas City are goldmines for Airbnb and Vrbo listings.

“During Chiefs game weekends, short-term rentals charge five times their normal rate,” he said. Can you imagine? It’s those kinds of spikes that make vacation rentals such a lucrative investment, whether it's a cozy lake house or something near a big event hub.

 

Relevant Blog Post 

How to Analyze a Short Term Rental

The Magic of 1031 Exchanges

We also got into the nitty-gritty of 1031 exchanges. If you’re unfamiliar, 1031 exchanges allow investors to sell one property and reinvest the proceeds into another, tax-free (as long as they meet the requirements). It’s a game-changer for scaling up your investments.

That said, Joe didn’t sugarcoat the process. “These are great tools,” he explained, “but they require planning. You can’t just wing it.” It’s not something beginners should jump into lightly, but it’s a smart strategy for seasoned investors.

Adjusting to Higher Interest Rates

With the current interest rate situation, we also talked about how buyers are navigating the shift. Rates are higher than they were a couple of years ago, but people adjust. “Someone house-hunting at $350,000 last year might be shopping at $300,000 now,” Joe pointed out. It’s all about resetting expectations while still staying within reach of your long-term goals.

Takeaways for Investors

By the end of our chat, I was seeing property investing with fresh eyes. Here are the major takeaways anyone considering an investment should keep in mind:

1. Do Your Homework. Understanding the market, financing options, and risks is half the battle.
2. Know Your Goals. Are you flipping for quick cash? Renting for income? Holding for appreciation? Start with a clear focus.
3. Prepare for the Unexpected. Whether it’s surprise repairs on a fixer-upper or shifts in market demand, investing isn’t without its risks.
4. Leverage What’s Available. Whether it's short-term rentals, long-term holds, or tools like 1031 exchanges, there are ways to make smart moves.
5. Fixer-Uppers for Cash Buyers

Look for low-cost homes in disrepair that can be purchased with cash and renovated for resale or rental income. Be prepared for significant repairs and challenges with financing.

Johnson County KS Investing Ideas that Were Discussed Short-Term Rentals in High-Demand Areas

Invest in properties near vacation destinations or event hubs (e.g., Lake of the Ozarks, Kansas City) to capitalize on seasonal spikes in demand through platforms like Airbnb or Vrbo. Check out resources like our free short term rental agreement template. 

Vacation Homes for Long-Term Appreciation

Consider buying in popular vacation spots like Breckenridge or Key West, where properties tend to appreciate over time, though they may be more vulnerable during economic downturns.

Leverage 1031 Exchanges

Use this tax-deferral strategy to sell one property and reinvest the proceeds into another, allowing you to scale your portfolio without paying capital gains taxes (if done correctly).

Invest in Real Estate as an Inflation Hedge

Purchase properties to protect your money from inflation, as real estate values tend to keep pace with or exceed inflation rates over time.

Wholesaling for Quick Profits

Explore wholesaling, where you buy properties off-market and resell them quickly to other investors for a profit. This requires market knowledge and fast decision-making.

Adjust to Market Conditions

In a high-interest-rate environment, focus on properties within adjusted budgets or consider smaller investments that still align with your long-term goals.

Starter Homes for First-Time Investors

Look for affordable, habitable homes that can serve as entry points into the market, especially if you’re handy and willing to take on minor renovations.

Invest in High-Visibility Properties

Target homes on busy streets or in well-trafficked areas to maximize exposure, but ensure they’re priced competitively to sell quickly.

Diversify with Rental Properties

Build a portfolio of long-term rental properties to generate steady cash flow, especially in areas with stable demand.

Check Back for Updates

There’s something inherently exciting about the idea of real estate investing. It’s not just about money, it’s about strategy, adaptability, and finding those hidden gems that could set you up for years to come. Sure, the market has its challenges, but there’s also incredible opportunity if you’re willing to put in the work and get creative.

Joe summed it up perfectly during the episode. “Real estate investing isn’t just about owning property, it’s about knowing when to seize an opportunity.”

Listening to him made me want to take a closer look at what’s out there, whether it’s a cheap fixer-upper or a dreamy vacation rental. Who knows, maybe my first property investment will come with a nice view of Lake of the Ozarks, and if it does, I’m chalking it up to Joe’s wisdom (and maybe asking him to lend a hand on the paperwork).