Quote from @Osamede Edokpolo:
Quote from @Garett Weber:
Quote from @Osamede Edokpolo:
Quote from @Mike D'Arrigo:
@Quinn Hahs You're fortunate to live in a great investment market. There's no reason to go outside of your own back yard. In my opinion, Kansas City is one of the top markets for cash flow. We have about 10 years of experience in KC. Feel free to reach out if you'd like some insight.
I live in Springfield, MO and I am considering there was well as KC. For a first time investor say in the KC area, what range of down payment would be needed to get into a cash flow property whether SFH or MFH? Let me add that with a credit score over 800, I am pretty sure I can get good mortgage rates.
Cash flow in KC is easy to find-- can be found in Springfield too. I'm seeing about $200-350/month on average for properties under $150K -- all in cost. (with recent interest rates increases, this is changing slightly)
Down payment amount depends on which route you are going... Plenty of Hard Money/ Private lenders that have loan products requiring as little as 5%-10% down (with varying points, origination fees, etc).
I work with a local commercial lender that also does subject-to loans requiring the typical 20% down-- but if it is a BRRRR property purchased at the right price, you can have force 15-20%+ equity and not have to leave any of your own money in the deal after the rehab is done.
Thanks. I'd be looking to put 20% down and go the traditional finance route with the banks or mortgage lenders. I have interest in properties that don't need a ton of rehab for it to be rent ready. My goal is for cash flow, I am not looking to flip or refinance unless the numbers clearly indicate otherwise. I have been looking on Realtor. com but I am not seeing the kind of properties you are talking about. Any other sites you recommend? Thanks
If you are looking to use conventional loans, I would save yourself a ton of time & effort and find a good agent who works with investors. Their small commission on a sub $150K rental will be well worth their time/effort/expertise. The market seems to have cooled off somewhat in the last 2 months, but in Kansas City especially, it is saturated with in and out of state investors and is still competitive--hence why you need an agent who is working for you. If it is a "turnkey cash-flowing rental" you will be competing with other investors, many of which present cash offers, close in 2 weeks or less, waive inspections, etc.
If you plan to find a good deal by just casually looking on Zillow/realtor.com on the weekends, chances are you will be looking for at least a few months.
You can also work with experienced wholesalers, but they are normally looking for cash buyers and don't always allow conventional loans-- though some do after you close a couple properties with them.
