All Forum Posts by: Pete M.

@Zac Celli Your property value will vary based on the area of the city, obviously.  Most C-class areas will be much less than $180k; mine are in the $85k-$120k range, and all are probably C/C- neighborhoods (and most are Sec 8 tenants).  Insurance rates are higher than you may expect, because of the risk of hail and tornadoes; there are previous posts (including one I made myself) asking for recommended insurers.  You can pull up some random properties in the areas you're looking to see tax rates, just check the county assessor's website. 

Cash flow is usually an apples-to-oranges comparison... depends on what you define as "cash flow". Some people just take their monthly gross rent and subtract PM fee (if applicable) and PITI, while others (including me) also set money aside for reserves/maintenance/CapEx/vacancy. Keep in mind a pricey maintenance item or repair in a single month could easily wipe out that month's cash flow, and quite possibly more (hence why many of us set a portion aside every month for when those come up). After accounting for everything, I look for a minimum of $150/mo, hopefully closer to $200 or $250 in cash flow (pro forma).

Resurrecting this thread in lieu of just making a new one--I'm looking to get started BRRRRing in KCMO shortly. I see a lot of banks mentioned, but no contact info. Anyone care to share? Will be doing SFRs & small multifamily to start, but doing everything with an LLC and prefer the flexibility of portfolio loans.

Thanks in advance.

@Amelia Mosser

Yes, I live in Issaquah as well. There are a good number of BPers in the area. I invest out-of-state at this point, but will likely look towards in-state in a few areas in the future. Off-market deals and auctions can be good sources for BRRRR-able properties--networking with local brokers and wholesalers who focus on those types of properties is your best bet to start getting a line on these types of deals, but they're also tougher to find because of the (still) hot market around here. There are many local meetups that bring all sorts together, from flippers to wholesalers to lenders to brokers to contractors, and more.

Thanks.

Pete

@Amelia Mosser

Welcome to BP. Have you spent much time learning about the BRRRR process already? Which market(s) do you want to operate in? There's a lot to digest here, and education + networking is usually the best start. Tell us more about where you're at, what you're looking for (connections in a certain market, book/podcast recommendations, etc.).

Thanks.

Pete

Welcome to BP, @Chris Blume.

This is certainly the hub for like-minded individuals.  Have you determined which areas of RE investing are most appealing to you?  More STRs?  Single family, multifamily, or some other asset class?

@Matt Ferch

Welcome (to posting) on BP, Matt! I lived in STL for 9 years before moving to Seattle in 2016 for work. I'm not investing in STL, but I do BRRRR in OKC. Send me a PM if you want to chat more.

The tenant actually moved in two PMs ago... I managed to track down and contact that "original"/two-ago PM who did the move-in, but they said they had no move-in inspection reports.  The previous/one-ago PM did have an inspection that showed damaged floors in the room, but that was a mid-lease inspection with the tenant already in.  Still no clear evidence they caused the damage.

In any case, I've burned enough time on deciding, so I'll just withhold for the keys and refund the rest.  I have more important things to be spending my mental cycles on!

Thanks all.

@Nathan G.

The counterargument I hear is that if they damaged the floors, they've waived their deposit--what the landlord intends to do after they leave is irrelevant. Don't reward them for bad behavior, in other words.

With that said, unless I can find a clear inspection that shows they caused the damage, I will just withhold for the locks and refund the rest. No need to make enemies or get the reputation for being sleazy.

And yes, we purchased as a BRRRR, so it's not like this will make or break the deal.

Thanks all for the advice!

@Jacob Sampson @Theresa Harris

Thanks for the insight. The deposit is $700, which I believe was one month of their former rent. I think at a minimum we'll hold back money for changing the locks. I'll see if I can reach the prior PM as well about any info on the condition of the property.

Thanks.

All,

Looking for a quick bit of advice. I purchased a SFR rental in Oklahoma City, and the prior landlord & PM failed to give the proper notice to the tenants to be out prior to closing. We closed anyway and the tenants moved out at the end of April as planned. They cleaned up the place well enough, but the agents walked the property afterward and said the tenants' dog destroyed the flooring in two rooms... deeply scratched and warped boards. This is a BRRRR and we planned to replace these floors anyway, but the agents recommend keeping the deposit. We have no pre-lease inspection from the seller or previous PM, so I cannot say beyond a shadow of a doubt that the floors weren't already damaged... but agent is very confident this tenant did cause the damage. This same former tenant also refused to give the keys back to the new PM after she wouldn't promise them a full refund (simply not within her power to do so, which she told them), and so she just drilled and changed the locks.

Thoughts on whether I should refund all, a portion less the cost of new locks, or keep it all (which still wouldn't cover the cost of flooring for those two rooms)? Thanks in advance.