All Forum Posts by: Guy Yoes

@Caleb Brown

Great to know. Thanks for sharing, Caleb.  Do you refer them to PMs? Do You find properties outside of KC? I'm in Springfield. Do you locate properties here or in Branson (which is a active area)?

@George Pauley

George-

Thanks for the information!  What areas have you found to be good locations for OOS? How do you vet a PM? How long have you invested out of state?  Do you contact the PM or the RE agents to get your info?  

Lots of questions, but thank you for the feedback. I'm hoping it will benefit BP newbies.

@Caleb Brown

Thanks for your impute. Have you worked with many OOS investors? Do they seem to understand pros and cons of purchasing a property hundreds of miles away?  An OOS investor said he bought a property from a company that  "connected investors to investment properties". Have  you encountered any of these companies? thanks for any further information. 

You have 1 rental and it is out of state? You are wondering about self-managing the property?  So, If you got a good property (great shape, no major issues) and better than average tenants (mature adults, no kids,pets or addictions and pays on time) you might be able to make it worth. The online programs are getting better, but only deal with paper side of management. I mean  you can collect rent, advertise for tenants, post pictures etc..   The other side of management is ongoing inspections, collecting unpaid rent, making repairs (or contracting for repairs) in general just looking after your investment. 

The other alternative is to contract with a local property management company. Care should be taken to vet them well. When you hire someone to manage your property, you are giving them control of your asset. Realize, they are charging for every expense possible. They are the first to get paid and you get what is left.

Personally , I manage all my properties and look after a few others for family or friends. Not because I enjoy it, but I don't want to see them taken advantage by a unscrupulous PM agency.

 Either way. take a periodic trip to visit to your property and get to know your tenants.

I"m ready. Just waiting for the weather to stay above freezing for more than 3 days at a time.

I have seen a lot of posts lately on OOS investing in states like Oklahoma, Kansas, Arkansas. I have my views, but would like to hear from others who have opted to invest in areas that look more lucrative.

How did you get started.

What issues did you encounter?

Any advice to others interested in OOS?

@Haley Powell

First off   Boomer Sooner!

Wife and I both Sooners. 

@Charlotte Dunford

Excellent points.

There seems to be a lot of OOS mania about Oklahoma right now. Having lived in OK for most of my life and owning properties in Tulsa area, OKC area and Enid, I would not buy the hype at this time. 1 year ago this month i moved to Springfield Mo. and sold all my properties in Tulsa. Why? Because I could no longer buy rental property and make money.

The rentals i did have cash flowed just fine.  In 2015 I bought a 3 bd/2 bath/2 car garage/1320 sqft all brick for 78K. It rented for $900.00. Paid cash and it made a lot of money. So why did I sell it? 

The house next door to my rental (same floor plan/same year/same condition) sold for 128,500 in July of last year. I sold mine in October for 123.900.00. I owned that property for 4 years (cash flowed 650 monthly) and walked away with 30K+ in profits. Good for me. I 1031x it into 2 duplexes in Branson.

Not so good for the buyers of the two houses in Glenpool (Tulsa area). They were asking 1200 a month rent for the properties. Average rents were 850-1050 in that area. House next to my rental was empty for 3 months. I don't know when it ever rented or for how much.

I understand people on the west coast or in Colorado, New York start to salivate at the low cost of housing in Oklahoma. But what they don't know until later is this:

There is no housing shortage in Oklahoma cities (plenty of houses to buy or rent.)

People currently paying low rents are not going to move into houses with higher rents. 

Wages in Oklahoma have remained flat or very low growth and will continue to do so.

Landlords in Oklahoma are more than eager to sell you their rentals because they know in 12-18 months they can buy them back at discounted prices. 

How do I know this? Because I and many other REI in Oklahoma have and are doing it.

Haley-

Save your money! If your parents are paying for your college, (Thank them) save your money and seek guidance from a trusted family friend who is a RE professional. Be patient and learn. The time to buy is when everyone is selling, not when everyone is buying.

Best wishes from one sooner to another.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Branson West.

Purchase price: $110,000
Cash invested: $30,000

This is the 4th of 5 duplexes I'm in the process of buying.

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

I wanted to consolidate my SFRs into multi-family properties in a central location

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

I was looking for duplexes and met a guy who's father had just sold one. He told me the area where the property was located. I got on the county web site and found names of the owners. I contacted a owner who had 8 duplexes on that street. We agreed on which properties I was interested in and a price. I then negotiated a lower price with the contingency that I would close on all 5 within 12 months and he would manage them until the 5th sold. It was a win/win!

How did you finance this deal?

Two duplexes were purchased via 1031Xs and two were thru conventional bank loans. The 5th will be a cash out refi.

How did you add value to the deal?

I did the maintenance and repair work myself. I was able to increase the rents after repairs were made. By having all the properties on the same street, I cut down on time and expenses which increased my profit margin.

What was the outcome?

I have increased the value of the properties by 10-15%.

Lessons learned? Challenges?

Half the work is finding the best deal and running the numbers. The other half is doing as much of the work you can by yourself and knowing when to use a professional.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I don't use agents. I do the work myself in locating sellers and find quality professionals ( appraisers, inspectors, title companies, etc) that work with me on fees and services. A little effort saves time and money.
example 1: I told my inspector I was buying five duplexes & would contract with him for all five for a 15% reduction in fees. Saved $300.00.
example 2: I found a contractor rehabbing condos. I got 2 yr old appliances cheap. storing them in my garage.
Do it yourself and save!

@Tracy Streich 

Thank you for a candid conversation on OOS investing. I hope people will do their homework before signing up to purchase properties they have not vetted.

@Pete M.

Great info. Thanks so much. I guess with 8 you have a good team running it for you. Are you active in this project and is it just you (family) or a group of investors?