All Forum Posts by: Pete M.

I had an AirBnB in the past. Technically you have to register and have that percent of neighbors sign-off on it, or you could skirt that if you had a live-in host (which we did) with a signed lease for at least 270 days of the year (I think, don't hold me to that). We had applied through the city for an STR permit, but this was also as COVID was getting kicked off, so we heard nothing at all. Just operated it and they were none the wiser. Not currently operating that one as an STR, though, so take the above with a dated grain of salt.

I'm currently talking to a few, but haven't gotten any actual bids/estimates back yet for a major rehab I need done in KCMO.  Like @James French said, the good ones are held close because they're few and far between.

Lenders will often include the rent in your DTI ratio, but the rules vary by type of loan and private lenders are all different. I'm currently looking for larger properties (5+ multifamily) which don't normally rely on personal DTI requirements, but rather the performance of the underlying property.

I did not get started in SW MI, unfortunately, so I don't have anything to share there. I'm still open to it, but I'm short on time these days doing a career transition at the moment plus a new baby in 2021, so it's not a priority market for me currently. I've been told anecdotally that MI has some of the highest insurance costs in the nation, too, which isn't helping, but I'm sure some are making it work. BRRRRs in any market are harder to find these days due to the focused attention on the housing market driving up prices, even for under/non-performing properties going at prices that make sense for different investment strategies that can accept lower returns. Are they out there? Sure, but you have to be a lot closer to the deal to find something that can pan out to being a true BRRRR (read: recover all or almost all of your capital) right now.

@Alex Olson Yes, though generally looking for something larger!  Also shifting money around right now, so funds aren't immediately available.  Thanks for bringing to my attention, though!

I have a handful of SFRs and a couple duplexes in KCMO, both in the city and the 'burbs headed south.  The KC market seems to be shifting pretty quick with institutional money moving in (for better or worse).  Still looking for a 5+ unit that needs TLC (and is priced appropriately), which is mighty hard to find these days.

@Dean Harris  Thanks! This one is east of 51, but I'm sure it can still vary block by block.

@Jay Hinrichs  Undoubtedly that happens, but that's the point of my asking--to avoid the nightmare scenario you just described.  As you can tell from others here, it is possible to find success in Frayser with the right knowledge and people in place, but certainly more challenging for an OOS'er like myself.

@Jason Arms Thanks! This is a larger complex (at least by my standards), and currently not on the MLS. Asking price is way stupidly inflated, but we just put in a lowball offer and will see what they come back with. And I completely agree on the PM, especially since this place would need some TLC to be stabilized.

@Sean Toomey  Appreciate the insight!  That lines up with what I'm hearing... there are good pockets, but you have to look closely.

@John Britt  Appreciate the feedback.  I've chatted with several PMs in the area, too.  Definitely sounds like you have to evaluate it block-by-block.