All Forum Posts by: Cliff Harrison

@Account Closed I would not buy a SFR 3/1 that rents for under $750, preferably $850 or more. The 50% rule will be very inaccurate when calculating expenses, and a $650 market rent will be in a crummy n-hood and attract crummy tenants.

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Originally posted by @Jeff Hamlin:

I intend to make my first investment purchase in KC soon and am wondering if anyone has a solid referral for an insurance agent they work with or have worked with in the past. Thanks!

I have had good experience with Paul Bickle at Glad Heart Insurance. He is a broker who has set me up with 20 properties insured through Foremost insurance. Good luck Jeff!

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Originally posted by @Jeff Knox:

My name is Jeff Knox and have lived in Kansas City for fifteen years. My wife and I are ready to purchase a duplex in the Kansas City Metro area with-in twenty miles of zip code 64145. We are looking for a property that needs some TLC but not a total fixer upper. Our goal is to purchase five rental properties in the next ten years for cash flow and eventually retirement. We're excited to start this journey and have been and continue to educate ourselves on real estate investing.

Welcome to BP! I am buying in south kc and grandview. I would be in Independence now but its a little far from my house.

If you dont find the duplex you are looking for consider starting with a SFR. They are much easier to find and do have some advantages.

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Originally posted by @Chris Sickler:

Greetings to all you savvy investors out there!! I have been exploring BP for a while now, but just now joined as a PRO Member. So far I can see it was a worthy investment. I am currently seeking active investors looking to buy properties in Kansas City. Like most of you I am also looking for residential real estate to rehab or wholesale. I started an aggressive advertising campaign not to long ago to find more deals and expect to have them flowing in at any moment. I also have a very active real estate agent who is constantly putting in offers. I have had many properties bought in the past that would have made great wholesale deals, but did not know anything about wholesaling. I have been mainly rehabbing for the past 3 years successfully flipping 26 homes here in the Kansas City area. I love to rehab but have realized the potential of wholesaling. I have turned down many great properties in the past because I had to many and now I'm kicking myself in the head for not seeing the alternative strategies I could have used besides rehabbing. I would like to create a large buyer list so that I can throw these properties your way should I get back to that point. I pride myself in finding good deals and I would never waste your time with deals I wouldn't invest in myself. Look forward to hearing from everyone. I love to talk real estate so call or email anytime. I would also love to hear from others who have had success in wholesaling. I would also love to help others who have questions about rehabbing. I use to own a remodeling business, which is how I got into flipping, so I am pretty knowledgeable when it comes to analyzing deals.

Hi Chris, welcome to BP. Please add me to your buyers list. My areas are South KC, grandview, belton.

Cliff

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#20 is my fifth house in the same working class south Grandview neighborhood. This one is a BRRR. I'm buying it from a bank that foreclosed on it. It has some interesting features in that in the past it appears to have been owned by a contractor - it has a four-wide driveway suitable for many large vehicles - 200 amp service - two outbuildings (including a large workshop with windows and a loft) - a large add-on family room to the original house - and a wrap around back porch - a large single bathroom with a jetted tub and a tile patio area at the side of the house.

It's been a bit neglected and needs a good rehab. When I'm done it will be four bedrooms two baths. I am purchasing and funding the rehab with my own cash - my current lender will refinance up to 80% ARV but maxes out at purchase plus rehab (100%).

Purchase Price: $ 22,000

Estimated Rehab: $17,000

ARV: $65,000

Market Rent: $950

I hope all your projects are going well.

regards,

Cliff

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Originally posted by @Mariama R.:

What is the typical Cap Ex on a 24 year old duplex house, in Kansas City, MO which is between 1000 sq ft and 2000 sq ft, wherein one AC electric unit is new, the other one is 8 years old, where the heating systems in the 2 units are 8 years old and where the ages of the water heater and roof are undisclosed? Would you estimate between $100 to $200 per month in expenses? Thank you.

If you are going to hold long term, it's easiest to ignore the current component ages when determining how much to lay away in CapEx accounts in a long term proforma. Use the ages to think about 'when' you will need to make the CapEx withdrawls. For a duplex I think $200 per month is a good approximate number, may be a little less if it's a two story building design. The math is to identify all CapEx components, their total life span (assume purchase new), and their replacement cost. Divide the replacement cost by the life span in months for each component and add all of these together to get the amount to use to evaluate the 'long term' performance. If you are holding for less than 10 years you need to look at things differently, and if you have components approaching end-of-life now you need to ensure you have reserves/cash on hand to make those repairs out of pocket because your capex account won't have time to accrue savings from your layaway before you have to make the repairs.

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Originally posted by @Megan Miller:

Hi All,

I came across a property I found through a wholesaler at a local Real Estate Investor meeting, it's not on MLS. It's been rehabbed and is move in ready. Here are the details:

Purchase price: $17,000

2 Bed, 1 Bath, 760 sqft

Expected rent: $600-650

Class C Neighborhood, turn-key, 10% property mgmt fees

Given the price, we'd be able to pay cash for it, so we'd have no financing expense. After taxes, prop mgmt, CapX, utilities, etc. it would cash flow $300+.

Being from CA, this price point almost seems too good to be true. This would also be our first out of state property as well. Any red flags I should be looking for here or does this sound like a good deal?

Thanks for your input!

Use caution. It's possible to find great wholesale deals, but most of the great deals are not 'move in ready'. Even a free property won't cash flow in some parts of the city. What streets is it on/near?

What figures do you use for estimating CapEx and Vacancy expenses? Did you verify the two bedroom rent on rentometer.com?

Thanks

Cliff

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Originally posted by @Jake Thomas:

@Cliff Harrison Thank you. The carpet no carpet for a rental was a topic of debate for 2 weeks. We got to a point where we can buy decent carpet and get it installed for under $1.30/sq ft compared to covering the whole house in Traffic Master allure at $3/ sq ft. (Installed by us). I can always change it between tenants if it doesn't work out.

Thanks again.

If you have one around watch out for Lumber Liquidators specials. At my local store they have two nice interlock vinyl plank options for 1.59 and 1.69. Chestnut and Teak. Also peel and stick and adhesive options for much cheaper but those are much thinner and feel cheap.

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All Forum Posts by: Cliff Harrison

Cliff Harrison has started 22 posts and replied 199 times.

Post: Kansas City Appliances

Post: Kansas City Appliances

Post: Auction home In kansas city......Good deal or no deal?

Post: Insurance Agent in Kansas City, MO

Post: Looking for 1st duplex investment purchase

Post: New Kansas City BP Investor/Rehabber/Wholesaler

Post: Closed on Rental Property #20 in Grandview, MO

Post: Determining Cap Exp for a 24 year old House in Kansas City, MO

Post: Kansas City, MO Buy and Hold - Good Deal or Red Flag?

Post: First BRRR Deal!