All Forum Posts by: Caleb Brown

All of those markets on the KS side are strong. If you are being by KU you'll be in Lawrence area. There are PM's that manage on that side, Kansas City property managers don't generally travel that far. Which kind of lender are you looking for?

You can do it either way. If you offer first, I would factor worst case on rehab and offer based on that. During inspections bring a few GCs to give you actual line by line item bids. Once you do deals you'll be able to estimate better and it's faster. Initially it's spinning your wheels but that's part of learning. GCs don't like wasting their time so be upfront that the deal is under contract or not and make sure you are on the same page as them. 

Agreed with Nate. She might not have a deep interest as you. That could mean you handle the investing side and keep her updated. Make sure you are both on the same page. Down the road she might help in a area but don't expect her to be as interested as you. Very rare that is the case. 

Besides mortgage and taxes you should factor in cap ex, repairs/maintenance, property manager, insurance, and vacancy. Cap ex, repairs and vacancy is a % that you'd set aside from the monthly rent. Property management would depend on the company but ranges from 7-10% so interview a few different companies. If you self manage I would still keep property management cost in mind if you change directions. 

Echoing what others said, keep. Seems like a great property and will continue to appreciate. Industrial in an area like Chicago will be safe(unless a major event happens), even then those industries don't vanish easily. If you wanted to diversify you could use the income and purchase other properties, slowly add other properties. 

The ideal situation is you guys updating and moving. Then set aside the equity to invest outside of a primary home. Then use the equity to continue investing without having to move into each property. This is not ideal but financially the best path. With 40K you can tackle a property using hard money(flip or BRRR) BUT 40K can be eaten up quickly. With you having experience that helps. Having 1 toddler and another on the way you'd want to have money set aside and financially safe. Other then that you can sit tight and let your primary appreciate, save more and explore pulling a HELOC to tap into it.

I am a huge fan of Alex Hormozi. He is a business savy guy. Often he mentions his enjoyment is the journey to the goal. A goal is nice to set but the path too it is where I find the fun. Your goals might change. If you love REI you might extend the goal over and over or you might try something else. Personally I like the work part and building up to something. Money/wealth is just a way to show that you are progressing and a tool

Hopefully a local wholesaler can chime in to connect. If you can network and work with a larger wholesaler to get you going I would. They can provide training and help you close. Since you are ambitious they will gladly feed you so everyone wins. As you learn you can branch off. Without partnering you can also network with local agents to verify comps. I would figure out how to make it worth their time but that'll give you training on ARV's. Same thing with contractors. Keep going though, being young you have time to build a beautiful thing in RE

It's viable and can be done but risky. I think that's why most argue against doing it unless you are an experienced investor and have cushion. People do creative deals all the time but they know what they are doing. They also have deals under their belt and cash to use if it's needed. As a newer investor it's simpler and better to focus on the basics until you have more experience. House hack is one of the best to get you started and feet wet. 

De Soto has high demand. It's close to Overland Park and a few other major suburbs on the KS side. It's seen quite a bit of growth and development, the income is also high around that area. I will say unique properties can sit since you are finding the "right" person. People who can afford a property like that will buy a home themselves instead of renting(majority of the time). Curious why you are targeting a property like that for a rental?