Wichita KS investments 2021

[Edgar Adkins]

Greetings Fellow Investors,

Ive been a BP member for a few days and am amazed with the overwhelming support, knowledge and experience that is pushed throughout this network. REI has always been a life goal and am happy to have found a site where we can network and grow within this community.

I am a starting investor in Wichita, KS area, holding one property and currently targeting my second. Exciting and challenging times with COVID19!

During my first investment, I was able to purchase under market value 🙌 , and with some rehab it now appraises at 20-25% over the initial purchase+rehab cost! Additionally, CF is almost 50% the overall monthly fees!

Feel free to contact me if you're looking to invest or just wish to connect in the Wichita area, or have sage advise for a young up-and-comer. My expertise is hard work, locating very affordable workers and crime analysis in the Sedgwick County area.

Below are some questions I feel could benefit myself and maybe other newer members in the comunity:

- Things/areas to avoid while investing in Wichita area?

- Does anyone have investments in class C/D neighborhoods in the area, and what are your experiences? Worth the risk?

- Are HELOCs worth it, even if they create larger monthly payments on loan, in order to finance a new property?

- I've heard people are waiting until 2022 to invest in good deals with the current market in Wichita, any thoughts?

- What are quick ways you've experienced in early investment stages, to finance properties when you start running low on funds (specifically in Witchita area)?

- Are there many partnership opportunities in this area, as there are in larger metropolitan areas in our nation?

- Any hard-fast rules when making offers in today's market (with houses going 10-15%+ over asking)?

- Is it best to self-manage or have someone manage your properties when first starting?

- Any luck with the BRRRR method in this area?

- Are there any local REI meetings or events that are beneficial to RE newcomers?

- What are some of the preferred mortgage loan or broker companies (with lowest rates and fees)?

- Ive heard investors focusing on increasing CF, others on wedge deals (buying under market value) instead, any thoughts?

[Jonathan R.]

@Edgar Adkins There are quite a few investors from the Wichita area here on BP. My guess is the reason you haven’t gotten replies to your post yet is you asked quite a lot of questions. Lol. First off, welcome to the site. I’ll do my best to hit on your questions.

-Personally, I buy about anywhere except Plainview and Hilltop. Hilltop basically sells homes on lots that have a lot rent associated with them. The area is rough, I don’t mind the rough part, but I want to control the dirt too. Plainview has old military homes on it that should have been bulldozed a long time ago, they were only meant to be temporary homes. The area is also rough, small multifamily on top of each other. I like my tenants to have their own oasis.

-I invest in C and D areas. I’m primarily a cash flow investor, but even so I have seen some appreciation over the last few years. Many people didn’t think I would see value gains, but I think I’ve proven them wrong in this market for sure. Regardless, cash is trash but cash flow is king. Just my .02.

-I’ve used a Heloc on my primary to purchase investment property. A Heloc is like a credit card on steroids. Once you make your payment you have quite a bit of that money available again for immediate withdrawal.

-I’m not in the camp that thinks to wait to buy investment property till 2022. Though, I’m also not competing with occupant buyers for the properties I buy, only investors. I’m in the camp that thinks we are entering a real estate supercycle that will last a decade or two. Don’t wait to buy real estate, buy real estate and wait.

-I’ve used a Heloc, 401k money, student loan money, unsecured loans, credit cards, and partners to buy real estate. I’ll buy real estate however I can. Partnering can be very powerful. 50% of something is better than 100% of nothing. 

-There is a meetup in Wichita on the 3rd Saturday of every month that focuses on large multifamily run by a few people. They are doing deals and looking for limited partners to buy apartment complexes. It’s a great group, I like them a lot.

-I don’t know what you mean real by hard fast rules for making offers.

-I personally self manage. I’m in the belief that no one will care more about my investment than I do. When it becomes too much I’ll either hire or consider property management. I’ll get to 20 plus properties and see how I feel.

-I haven’t used the brrrr strategy yet. Everything I have is owned outright, but I’ve certainly used creative financing ideas to build up my portfolio.

-I know of three meetups. @Jason Lavender runs a meetup once a month over lunch. The two other meetups, one is the commercial meetup I discussed earlier the third Saturday of the month in the evening and then another on a Saturday during the day. Check out meetup.com for those or Google search them.

-I have no insight on mortgage or brokerage companies with low fees.

-I like both CF and wedge deals. Both strategies work. I personally have been focused on replacing my W2 job income with CF. I’ve basically done that in 4.5 years. Now, I may throw a few wedge deals in the mix for good measure.

Best of luck in your investing. Certainly hit up some meetups and network with other investors. Real estate is a relationship game. Call me biased but I think Wichita is one of the best kept secrets for rei. We have a great market and some of the most affordable real estate in the country.