All Forum Posts by: Blake Brose

@Jason Malabute As it definitely does depend on the strategy you are using, each market has its own advantages. Take Kansas City, for example. Kansas City is one of the best cash flow markets because real estate prices are so low, while rents can be so high. 

1. Talk to Investors, Look at market research from big companies like marcus and millichap

2. Sub markets I would select once you find some investors or team members in the market that you trust.

@Jason Regan Something I have learned in my life, never take advice from someone that isn't doing what you want to accomplish. I have properties that I am selling right now in the KC market that are yielding a 12-17% cash-on-cash return. 

Investing is not up or down market specific, strategies are up or down market specific.

Research areas can be based on cap rates, purchase prices, rents, other investors in the market, neighborhoods, crime, business growth, population growth, business journals, even some great data resources from large companies like Marcus and Millichap.

@Blake Milliken Not sure your experience level, but I'd definitely start with something simple like turn-key investing. It gets you a stable base of income with a property that has far lower maintenance. Then, as you are building equity and cashflow, start looking for opportunities purchases or flipping land, if that is something you'd like to do. KC is a great market for both right now!

@Chad Bernard My experience as a general contractor / agent / investor / and now turn-key provider is that most of these companies are blowing smoke, primarily because they do not understand the construction aspect of the business, they rely on low-budget contractors rather than repairing projects to meet or exceed code, or they use the cheapest materials possible, not actually think about the lifespan for the investor. 

As far as markets, Kansas City is a one of the best in the Nation, and not sure if you are looking for multi-family or single family turn-key, but that is also a difference I have seen with almost all turn-key providers is they only provide single-family because, once again, they don't understand the difference in code requirements for the multi-family projects.

In the Kansas City Metro, we stay to 90-200k ARV properties, unless they are multi-family, which we do as well. Our turn-keys can have all new everything at that price.

These are like the bread and butter, where you avoid most of the riff-raff.

Yeah, on the face, discount properties seem like the way to go, but then comes the maintenance, tenant problems, and that equals little profit.

Cap-ex can be a killer. Especially on multiple units, and what may seem like a good property from the numbers will kill you in the maintenance. That's why all the units we turn-key sell from 1-5 units are all rehabbed thinking about everything and we strive to make sure everything major has at minimum a 10 year lifespan. Roofs, Mechanical, Electrical, Plumbing, Appliances, Hard-surface flooring, Tile to the ceiling in bathrooms, etc.

If you buy from a reliable turn-key company that does single-family or multi-family, and they have reliable property management in place, its a lot less headache, lower maintenance, and all the upside of owning real estate!

So I have a zoned 5-plex, made of 2-buildings and 1-parcel, currently for sale right outside Kansas City, MO in Indpendence MO. It is currently leasing up, rents are fantastic and it is almost a completely new property. 

My question is: Is it more appealing to out-of-state investors looking to invest in Kansas City, to have a 5-plex commerical multi-family, or to have them subdivided into a 3-plex and a duplex side by side so you can get a residential loan on each of them separately?

I'd love to hear thoughts!

@Luke Russell I help investors with BRRR and normal Buy-Rehab-Hold and Turn-key properties here in KC. If you'd like to chat more about your goals, shoot me a PM.

@James LaRocque

What areas you are looking to invest in? Kansas City is always a great cash flow market! Let me know if you'd like to chat about the market here.