How to Renovate for Affordable Housing Success in Kansas City with Tyler Aikin

Why This Episode Matters

When most people think about affordable housing, they focus on financing and tenant placement. But the quality of the renovation often determines whether tenants stay long term, inspectors pass your property, and your cash flow is stable. That’s why this episode of the Affordable Housing & Real Estate Investing Podcast with Kent Fai He features Tyler Aikin, a Kansas City general contractor, Section 8 inspector, and investor who has completed over 400 renovations. Tyler’s boots-on-the-ground knowledge of Kansas City neighborhoods, inspection requirements, and renovation costs is invaluable for anyone investing in affordable housing.

What Are the Best Neighborhoods for Affordable Housing in Kansas City?

Kansas City is a “block-by-block” market. Tyler explained that one block might be full of remodeled homes, while the next block could have high crime.

. For investors looking for slightly above-average neighborhoods with affordable housing potential:

• Overland Park: One of the safest suburbs in the U.S., highly ranked for quality of life.
  
  

• Lee’s Summit: Strong suburban market with low crime and newer housing stock.
  
  

• Raytown: Closer to the city, still offering opportunity for workforce rentals.
  
  

• Historic Northeast & East Side: Areas in transition, with gentrification driving value growth.
  
  
  

Pro Tip: Out-of-state investors should work with a trusted realtor or contractor who can drive neighborhoods. Virtual drive-bys (like Google Street View) can help, but nothing beats local eyes.

How Much Do Renovations Cost for Affordable Housing Investors?

Investors often fear being ripped off by contractors or underestimating rehab costs. Tyler shared clear benchmarks that help investors budget with confidence:

• Garage conversion to bedroom: $5,000–$7,000
  
  

• Bathroom remodel: ~$7,000 for a full gut to studs with modern finishes
  
  

• Kitchen remodel: $10,000–$15,000 for a standard layout (can exceed $80,000 for luxury)
  
  

• Furnace replacement: $3,000–$3,500
  
  

• Full HVAC system: ~$5,500
  
  

• Electric panel replacement: $1,500–$3,500 (mandatory for older panels flagged as fire risks).
  

These figures are Kansas City–specific, but the lesson is universal: plan for holding costs, permits, and inspection delays when underwriting deals.

What Do Section 8 Inspectors Really Look For?

As a former Section 8 inspector, Tyler offered clarity for landlords who fear inspections:

• Inspectors focus on safety, basic livability, and cleanliness.
  
  

• Common failures: damaged window screens, unsafe chimneys or flues, outdated electrical outlets.
  
  

• Reputation matters. If an inspector has flagged your properties before, they may scrutinize future inspections more closely.
  
  

Tyler emphasized that inspections protect both tenants and landlords by catching hidden hazards like carbon monoxide leaks.

How Do You Attract Better Tenants in Affordable Housing?

Tyler’s philosophy is to go slightly above average in every property. A few thousand dollars in upgrades can make a huge difference in tenant behavior:

• Upgraded countertops, tile backsplashes, and LVP flooring attract tenants who value dignity and responsibility.
  
  

• Quick response to maintenance requests builds loyalty. Tyler shared that some of his tenants have stayed 6–8 years because of this approach.
  
  

• Avoid providing washers and dryers, but do supply stoves and refrigerators through trusted suppliers with repair swap programs.
  
  

Key Insights for Investors

• Renovations are not just about cost—they are about tenant retention and inspection success.
  
  

• Kansas City is hyper-local. “Block by block” research is critical before buying.
  
  

• Strong contractor relationships can cut permit delays from months to weeks.
  
  

• Section 8 inspections, done right, protect landlords and tenants.
  
  

• Treat tenants like customers. A little extra quality leads to longer leases and lower turnover.
  
  

Best Quotes from Tyler Aikin

“Kansas City is very block by block. One street can be great, and the next can be dangerous.”

“Most of the Section 8 inspection stuff is just common sense. Is the house safe, livable, and clean?”

“If your houses are a bit above the neighborhood, tenants realize that and take care of it.”

“Happy tenants stay in houses. If you respond quickly to maintenance, they’ll stay for years.”

Common Questions This Episode Answers

How much should I budget for a bathroom remodel in Kansas City?
About $7,000 for a full gut renovation with new shower, vanity, and flooring.

Do Section 8 inspectors fail houses for small issues?
Yes, sometimes for things like torn window screens, but good communication with inspectors can prevent long delays.

Which Kansas City neighborhoods are best for affordable housing investing?
Overland Park, Lee’s Summit, Raytown, Historic Northeast, and the East Side (east of Troost to Independence) are strong choices.

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Should landlords provide appliances in Section 8 rentals?
Yes, provide stoves and fridges but avoid washers and dryers to reduce liability and maintenance calls.

Why This Podcast Leads the Affordable Housing Conversation

Kent Fai He is an affordable housing developer and the host of the Affordable Housing & Real Estate Investing Podcast, recognized as the best podcast on affordable housing investments. Each episode delivers real-world insights from developers, contractors, fundraisers, and advocates shaping the housing industry.

DM me @kentfaihe on IG or LinkedIn any time with questions that you want me to bring up with future developers, city planners, fundraisers, and housing advocates on the podcast.