All Forum Posts by: Caleb Brown

@Niraj R.

KC is a killer city. I found BRRR to be easy to do here ;)

@Mitchell Palmer

What’s the break down of the numbers?

Estimated rehab

Rents after rehab

Holding costs

These are the major items, most likely you’d need to partner with someone if it makes sense. It might look good glancing at it but you need to review the numbers before doing anything.

I always avoid those areas especially without experience. Yes cash flow is "high" but vacancy and turnover is killer along with rehabbing after the tenants moves out. Lowest i'd go or recommend is C area. C areas return around here are 10%-15% possibly more. 

@John LaVecchia

They aren't common on the MLS here too. The best way I find it is cold calling owners. You do have to uncover a lot of owners since they get bombarded by calls. Besides MLS networking and whole sellers are the other best way

@Shivam Bhalla

When you invest out of state Midwest is usually the best areas. You want growth and people moving there. Take for example KC market since 2013, average rent has risen $690-$1050 as of 2019. There has been an increase of out of state investors looking into the Midwest so you have to be quick and have boots on the ground. Finding a team is very crucial for going outside your stomping ground.

@Jayson Wolfe

When I work with buyers it’s a case by case basis. I usually do per property unless investor wants to exclusively work with me. If it’s per property it should light a fire under the agent

@Evan Polaski

Midwest has good returns, but a lot of OOS investors are pouring their money in so it’s getting more competitive. If you do go OOS and choose Midwest you need to be quick and have boots on the ground. Inventory has been decreasing nationwide so it can be tough. The rent ratio is still great compared to large cities and job growth is strong since people are migrating in.

@Jonathan Barr

Very true Midwest is a cash flowing market.

@Ellie Narie

Are you waiting for MLS? If it was me I'd pursue off market ones. See if you can contact the owners of 2-4 unit properties. Sooner or later you'll find the perfect fit

@Jonathan Mabanta

That’s awesome! Sounds like a solid investment. What was it worth after rehab?