All Forum Posts by: Chris Heichel

Way to go Jacob. Congrats on the purchase. I can recommend a credit union. I have been using Community America Credit Union for over a decade and have been very happy with them. Had several car loans through them and I just used them for a HELOC to cover the DP for my first duplex. They have a great mobile app and plenty of branches all though-out the KC metro area. I'm meeting with a highly recommended CPA on Monday that specializes in real estate investors and will share once I have a good feel for him!

@Joe Doran I'm interested in this as well. I grew up in Johnson County (Olathe) and currently live in Northern Kansas City, MO. I am fairly new to the real estate market and don't have a ton of experience, but I'd at least like to share my thoughts! 

The housing market in Johnson County is extremely aggressive right now (like it is everywhere I suppose!). One thing that I would be concerned about is the ROI and cash flow on properties in places like Overland Park, Olathe, Mission, etc. Cash flowing $200/month on a property in Jackson/Clay County that cost $150K, vs Cash flowing $200/month on a property in Johnson County that cost $350K seems like a much better ROI, especially if you are having to put 20%+ down. I also wonder what the rental/owner percentage is in the high dollar subdivisions in OP and Olathe. Seems like the majority of the people that live in those houses own them. I would think in the older neighborhoods and subdivisions there would be great potential, and like you said, the A-class and upper B-class neighborhoods are more plentiful than in most of Jackson County. Another thing that I'm assuming would be more standard in the area that would hurt your cash flow are all the HOA's and their fees.

Clearly Johnson County has a massive rental market because there are as many apartment complexes as there are banks (and in Johnson County that's saying something!). As far as Single Family Homes and Multi-Family homes go, I haven't really been interested in looking there. I'm sure there are investors that are making a killing there, hopefully they chime in!

The HELOC was on my primary residence. I used the funds to pay for an investment property.

I just used Community America Credit Union for my HELOC to fund a down payment for a property. I have been banking with CACU for over 15 years now and they have always had excellent service. I've had multiple vehicle loans through them as well. This is my first HELOC and the process was painless. I closed on that last Saturday.

@Lee Ripma The numbers seemed to work on it, I ran them about 20 times being our first investment! As luck would have it the seller dropped the price $10K the day before I put in an offer. 

@Joshua Espejo It is! Both units are currently occupied. The previous owner did some upgrades and I will likely do some more value updates in-between tenants to fetch more rent. I am hoping to use the BRRRR method on future purchases but for our first property we didn't want to jump into something that required substantial renovation. Have you BRRRR'd anything in KC?

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Kansas City.

Purchase price: $160,000

The Octagon! Our first investment property. We purchased with the intention to buy and hold as a source of passive income.

What made you interested in investing in this type of deal?

We wanted a multi-family unit to be our first investment property.

How did you find this deal and how did you negotiate it?

I found the property on Redfin. It had been on the market for over 30 days which is a lifetime in this market!

How did you finance this deal?

We used a HELOC on our primary residence to fund the down payment

I am new as well. My wife and I are in the early stages of learning about real estate investing and are gathering resources to make our first purchase. Talking to other people in the area would be of great help for sure! We live in the Northland.