All Forum Posts by: Caleb Webster

Hello KC investors!

I'm an investor from Portland OR, doing mainly fix and flips and the occasional lease option over there. I've been networking quite a bit locally and connected with several investors in the NW that are looking to invest out of state in smaller (5-20 unit) MFR properties in the midwest. I've been researching markets in the midwest for some time and KC was one of those cities that just kept rising to the top of the list for potential cities to invest in. I know that KC is pretty hot (what market isn't right now) but I've decided to take a scouting trip to get a feel for the city and network a bit. I have a friend of friend that is a pretty active flipper in KC that I will be connecting with but I wanted a broader perspective on KC too.

What cap rates are you consistently seeing? I've seen quite a number of properties on Loopnet at 8+. I would imagine that those neighborhoods are probably C- to D though. What are your thoughts on the Troost Development? Is it being managed well? Are you optimistic that that will improve the area? 

Do you have a lender you would recommend? 

If anyone is looking for private money, let's talk! I may be able to help. Our problem over here is plenty of cash, not enough deals. 

You're going to want to factor in closing costs on the front and back end as well as holding costs. If this property is outside of Portland, and my guess is that it is, you may be sitting on the property for several months before it sells. Talk to an agent and find out what the inventory of houses listed is in that area which will give you an idea of how long houses are sitting on the market.

@Jay Hinrichs They definitely differ on many metrics but I think Spokane could become like Bend - a destination for outdoors enthusiast and food/art connoisseurs alike. 

I’ve got to agree with @Jay Hinrichs on this one, I’ve been telling people for years that Spokane is the next Bend. The proximity of natural beauty in Spokane rivals that of other much more expensive cities. The livability of much of Spokane (South Hill, Browns and now parts of West Central) is something I haven’t experienced in any other city in the northwest. The coffee, beer and food scene are incredible for a city of its size and it boasts many large, well run events every year (bloomsday, hoopfest etc.).

Thanks for all the replies you guys! This is a huge help. If anyone is looking to JV on a mid-sized (10-20 unit) property let me know. I can provide financing.

Do any of you seasoned Indy investors have a recommendation for a property manager in the Irvington/Englewood neighborhoods? I'm also looking for a commercial broker too if you know anyone.

Thanks!

I second Jay, come on down to Portland! 

I would also recommend getting your feet wet with flipping. I know of several investors out there that have JV programs where you can lean on their experience, resources and network (contractors, agents, inspectors etc.) while still doing the majority of the project yourself. In exchange, I think most of them ask for 10% of the profit from the rehab. Not a bad deal if you're finding it overwhelming to get started. HMU if you'd like a referral!

@Steve Rozenberg That's great! I've always thought that being a pilot lends itself quite nicely to REI. I have no desire to fly commercially but nevertheless still find myself mesmerized by the big birds. How many days a month are you gone?

I know I'm not the only investor out there that's also a pilot so figured it would be fun to see who else on the forums is addicted to burning money to slip the surly bonds of Earth on wingéd aluminum dinojuice-thirsty contraptions!

Just a few questions if you're out there:

What do you fly? Own or rent? Do you use your plane for business or pleasure? Do you deduct operating costs if you do use for business?