Wichita Kansas Market hard to find a deal

[Sean Gammons]

I am looking to buy a house hack in Wichita Kansas, but the inventory is so LOW, and nothing seems to make sense. I am looking for a 8-10% return after I move out and rent out both units. This seems impossible to get unless I buy in the Plainview Area, South City and S Broadway St. Which these areas are considered bad.

Anyways what is working for investors here are you having the same trouble? Also, what returns are you shooting for in the city here thanks!

[Ike Hobbs]

If you're utilizing the house hack and low downpayment, I wouldn't think you'd have any issue hitting that target for a Cash on Cash or IRR. I just got one last month that had been on the market for awhile and after moving out it's around 13% when estimating 10% Vacancy and 10% management fee, both of which I won't be paying on for a bit.

Do you have a good agent? I had one that was really good at looking at on the investment side and would be happy to recommend. Come over to the WAREI group sometime when you can. 

[Sean Gammons]

@Ike Hobbs Wow really? Did you add 10% for property management just in case in the future you don't want to manage it yourself. What side of town did you buy on and how many units was the property you purchased and what was the price? Thanks

[Ike Hobbs]

Yeah I plan on having a property manager in the next 4yrs but for now I can manage most things myself. It was a 2bd 1bth house with detached ADU 1bd/1bth. I posted it on my profile here. Location is on McCormick. Not ideal but it's very close to Newman and Friends. I purchased for 136k and seller paid my closing costs. I did a 7.5% down conventional loan.

[Drew Sygit]

@Sean Gammons rising property values & mortgage rates have ended the "easy days" where you could buy anything and rent for cashflow.

You're going to have to look harder or go into riskier investments.

Prior to the crash of 2008, seasoned investors would look at 100 properties, bid on 10, to hopefully get one deal accepted that met their ROI and CoC requirements.

[Bob Stevens]

Quote from @Sean Gammons:

I am looking to buy a house hack in Wichita Kansas, but the inventory is so LOW, and nothing seems to make sense. I am looking for a 8-10% return after I move out and rent out both units. This seems impossible to get unless I buy in the Plainview Area, South City and S Broadway St. Which these areas are considered bad.

Anyways what is working for investors here are you having the same trouble? Also, what returns are you shooting for in the city here thanks!

 So buy in the C D areas, its all about price , Oh and hire a PM co 

Good luck