Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Cliff Harrison

Cliff Harrison has started 22 posts and replied 199 times.

Post: Anyone else primarily in stock index funds and 20% or less in RE?

Cliff HarrisonPosted
  • Rental Property Investor
  • Shawnee Mission, KS
  • Posts 205
  • Votes 136

I built a securities portfolio based on index funds prior to beginning my REI activities. Now I still contribute to get my company match in a 401k but I am now investing after tax savings exclusively into RE. I wish I had started earlier and more aggressively in RE and foregone some of my stock asset accumulation.

I don't think RE works that well with just a couple of rentals.  There is too much variance and risk.  Each property is like picking an individual stock and your variance will be high.  But when you have a larger portfolio of RE properties, it's more like an index fund - it doesn't kill you to have one property vacant or trashed - and you can acquire the portfolio using leverage.  In addition to cash flow, you will accumulate equity courtesy of your tenants.  I simplistically think of my rental properties as piggy banks with a constant trickle of money from the tenant into the piggy bank.  Then when the piggy starts to get somewhat full, you can empty it out (cash out refinance) and let it start accumulating again.  If you have plenty of rentals at different levels of equity accumulation scheduling the use of that equity is another alternative to paying off rentals and owning free and clear - and of course there is nothing wrong with that either.

Post: SO I paid off one of my mortgages TODAY, thank you Jesus!!!

Cliff HarrisonPosted
  • Rental Property Investor
  • Shawnee Mission, KS
  • Posts 205
  • Votes 136

CONGRATS!!!  Getting a paid off property will turbo-charge your cash-flow.  If/when I get mine paid off cash flow will double when I drop the P&I payments.  You can use that extra return to pay off your next property even sooner.  Way to go!

Post: 8 Unit Complex and 2 SFH

Cliff HarrisonPosted
  • Rental Property Investor
  • Shawnee Mission, KS
  • Posts 205
  • Votes 136
Originally posted by @Karen Barber:

You might also try Erik Kolseith (sp) at Arvest Bank or Shawn Huss at Talmer Bank.  

We have had Shawn Huss finance several deals for our end buyers & he has been great!

 FYI.  Eric Koseth has left Arvest and is now with Sunflower Bank.  They are investor friendly at Sunflower as well, allegedly.

Post: Reasonable cabinet maker in Kansas City area (for rental)

Cliff HarrisonPosted
  • Rental Property Investor
  • Shawnee Mission, KS
  • Posts 205
  • Votes 136
Originally posted by @Chandra Venkat:

Ketan,

     I got some very good cabinets at one of the surplus stores over at Patriot Surplus, 1227 East 119th Street, Grandview, MO 64030. It was pretty reasonable and I was able to get it quickly. Worth checking it out. 

Thanks,

Chandra

 Hi Chandra,

Hope you are doing well. I have bought from Patriot (a granite slab) but they really turned me off with lousy customer service.  They almost would not release the slab to the guy I sent to pick it up, and they never even acknowledge me when I'm walking around their dimly lit warehouse.  Have you been there recently?

Post: If you had $100k, how would you grow your rental portfolio fast?

Cliff HarrisonPosted
  • Rental Property Investor
  • Shawnee Mission, KS
  • Posts 205
  • Votes 136

BRRR!

Post: Help.. Struggling to rent first investment property

Cliff HarrisonPosted
  • Rental Property Investor
  • Shawnee Mission, KS
  • Posts 205
  • Votes 136

I also use www.rentometer.com

Stay under the average for your immediate area unless you have compelling features to offset and if so write good copy to showcase your benefits.  I have a pro subscription which allows me to dial down the proximity and age of listings being included in the comperables.

Post: Is this Turnkey a good deal?

Cliff HarrisonPosted
  • Rental Property Investor
  • Shawnee Mission, KS
  • Posts 205
  • Votes 136

Please add $125 per month to your budget for your capex reserve savings account.

If it's in a good location and in good condition it's just a middling deal for KC suburbs.  If it's a little beat up or in rougher area then it might break even until you pay off the debt.

So based on the little bit you have shared, it's anywhere from poor to average, imo.

Cliff

Post: Ben Leybovich, what would it take for you to KISS a 30k pig?

Cliff HarrisonPosted
  • Rental Property Investor
  • Shawnee Mission, KS
  • Posts 205
  • Votes 136

We all know that Ben, who also happens to be the author of the best real estate course in North America, is pretty outspoken about investing in 30K pigs. I was just thinking though, I wonder if Ben would entertain the idea of buying a 30K property in (C-Class neighborhood) that rents for $750-800 p/m? Just out of curiosity,  at what point do pigs become attractive?

Happy New Year Everyone!

I'm guessing he might not, although I would consider it starting around $800 market rent in stable C class neighborhood not too far (45 minutes) from my house. At that price point a SFR has a chance to be cash flow positive even budgeting the essential $200-$250 for repairs/capex. Of course the specific numbers, property condition, and demographics of the deal are vital to evaluating it.

Post: Best areas for cash flow in Kansas City Area?

Cliff HarrisonPosted
  • Rental Property Investor
  • Shawnee Mission, KS
  • Posts 205
  • Votes 136
Originally posted by @Sascha DeWitt:

I've been lurking around the forums for a couple months now and learning/reading everything I can about REI. I'm a newbie looking to invest in the Kansas City area, which I have heard is great for cash flow :]
Although I have lived in the area for almost 5 years I am looking to find someone that can help me identify great investment areas for max cash flow ( houses around 60k-100k). I've heard Olathe, Waldo and Grandview. Any suggestions and tips are much appreciated!

I like south KC outside of the 435 loop - and Belton, Grandview, Raymore. Tenant quality is decent, neighborhoods are not the hood, rent ratios 1.5% not to hard to find, and 1.75% if you take on rehab projects. Taxes are pretty reasonable. I don't think of Olathe as a cash-flow area at all, unless it's older multifamily. A 3/2 SFR in Olathe is 80-100% more expensive than south KC, and will only rent for 30% more. imo. Since you asked about cash flow specifically. Not saying Olathe is a bad investment at all.

Post: Flog me or praise me: I'm interested in your feedback

Cliff HarrisonPosted
  • Rental Property Investor
  • Shawnee Mission, KS
  • Posts 205
  • Votes 136

@Timothy Aughinbaugh those units look fantastic in the photos great job! 

My thought exactly! Are these 2/2 or 2/1 units? How many sq foot are they? Looking forward to seeing how this works out. $795 is getting close to the basic 3 bedroom SFR market rent in the area. Are you leased up at that rent already? They do look great.

Congrats!

Cliff