All Forum Posts by: Jacob Henderson

Join us for an insightful and informative event focused on maximizing your real estate investments through the 1031 Exchange tax saving strategy. Whether you're a seasoned investor or just starting out, this event is designed to provide you with valuable knowledge and strategies to optimize your investment portfolio. 

Security 1st Title will be bringing in their Director and Vice President of Security 1st Exchange, Carmine DiFulvio, from his office in Las Vegas, NV.. Carmine is an expert in his field and one of only 120 people in the United States that is a Certified Exchange Specialist® recognized by the Federation of Exchange Accommodators.

As a Qualified Intermediary, he and his team facilitate 1031 Exchange transactions for taxpayers throughout the United States. Carmine has personally aided over 20,000 taxpayers with their 1031 Exchanges over his 23 years in the 1031 industry, with transactions from as low as $12,000 up to $1.5 billion dollars.

We will be reviewing essential points on the 1031 Exchange, including but not limited to:-What taxes are deferred when doing a 1031 Exchange and why you should take advantage of this section of the tax code.-The timeframes of a 1031 Exchange-Financial Requirements of a 1031 Exchange-What is like-kind? (what can I sell and buy to qualify for 1031 Exchanges) This will be an open discussion. Come prepared to ask questions and have them answered by someone who has been in the industry for over 20 years. 

If you have questions about how 1031 Exchanges work, they will be answered at this event. You'll also have the opportunity to network with fellow investors and industry professionals, making valuable connections that can benefit your investment journey. Don't miss this opportunity to learn from the best and take your real estate investments to the next level. For more details check out our website: https://www.wichitaareareia.com/

@Emilio Ramirez

Welcome to BP! I'm a local investor in Wichita. My focus has been smaller multifamily and I like it a lot. I have noticed that small multifamily in the Wichita area is becoming more popular, so if you're going to go that route, you'll need to be quick or look off market. If you ever have any questions feel free to reach out.

Hey Austin,

Welcome to BP! I agree with a lot of what @Scott Mac mentioned. Also, I would recommend meeting as many people in the real estate community as possible. There are several really great meetups in town. In fact, there is one tonight at the Wichita Boathouse downtown that will be from 530 to about 730pm. If you can make it, you should come!

I would definitely check out Heartland Credit Union, ask for James Hoffman. He is used to creative deals, doesnt have a seasoning period and offers a variable interest (fixed for 10 years), 20 year amortization loan. Send me a DM if you want his direct number!

@Jonathan R. is right! Wichita is a great place to invest in real estate. Over the past five years or so I have seen much improvement to the city as a whole and am super excited to see what the future holds. 

@Ronny Lee I am not an out of state investor but I do live and invest in Wichita, KS. Indian Hills is one of my target areas for acquiring more rentals in. I am hoping to start utilizing the BRRRR strategy and a lot of the properties in that area will fit my criteria.

@Ivan Richards - Thanks!

@Gregg Jossie it is located in "Uptown" just northwest of Douglas and Hillside. 

Investment Info:

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

Purchase price: $78,000
Cash invested: $7,000

This was my first house-hack. I used a 3.5% FHA loan and live in one side for free. Once I move out I will conservatively be able to get about $330/month in cashflow after accounting for vacancy, maintenance, capex, and property management.

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

This is a deal that I could use to get my feet wet. I had been listening to the BP podcast and thought it was the smartest move to start my real estate investing career with a house-hack. This has allowed me to learn a lot about the real world of investing and has been a low risk way to enter into REI.

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

This deal was from the MLS. It had only one blurry photo of the exterior and I originally just scrolled past it. A few days later I came back to it, read the description, drove past it, and started calling realtors so I could see inside. One side of the duplex needed a lot of cosmetic work and the other side was in great shape. The seller wanted $80K for it and I initially offered $75K with up to $4000 in closing costs paid for. We came to an agreement at $78K with $4000 in my closing paid for.

How did you finance this deal?

I used a 3.5% FHA loan

How did you add value to the deal?

I completely remodeled the interior of the unit that I am living in this first year. My side of the duplex is only 600 square feet and I did all of the work myself so the total cost of the renovation was only about $4900. When I purchased this property, both units were significantly under market rent. I was able to gradually raise the rent on my tenants to market value since I fixed some of the issues the previous landlord neglected. Once I move out of my side, I will rent it for market value.

What was the outcome?

I have been living for free and saving a lot more money to invest on future deals.

Lessons learned? Challenges?

During this time I have learned a lot about renovation, budgets, managing tenants, and navigating difficult problems. Mostly I learned that I should use a contractor on future deals. My life was a rat-race for a couple months because I was working full time and doing all of the renovation work myself. Also, I wish that I would have offered less to begin with.

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

I found an investor friendly agent that wasn't pushy and helped me thoroughly understand everything. To make a long story short, I know work as a realtor alongside this agent, who is part owner in the brokerage I work for, At Home Wichita Real Estate. Many doors have been opened for me since I took the leap into real estate investing.

@Gregg Jossie It depends what kind of agency agreement they have with eachother (listing agent and Fannie Mae). If the listing agent is acting as a transaction broker, then they are just doing the paperwork and not giving any advice to either side. If they have an exclusive agency agreement with the seller (Fannie Mae) then they can advice the seller on what to do but not the buyer. Typically, it is wise for each side to each have a professional agent working for them and as a buyer it wouldn't cost you anything. Hope this helps!

@Robert Burris Great to see another local investor active on the forums! I have one duplex in a B class area and am looking to purchase my first BRRRR property soon. I want to shoot for lower priced rentals with higher income. I have met with @Jonathan R. and his strategy is unique and has been working well for him, he's a great guy and willing to freely give advice. 

Currently I am targeting single family homes that are less than $40K, need up to $10K in repair and worth $65K when I am finished. Using the BRRRR strategy, I should be able to pull most or all of my capital back out and repeat the process.

My best advice for you is to get out and network with other investors. There are several local REIA meetups and the next one is this Tuesday (3/12) at 5:30pm at the Wichita Boathouse downtown. Hope to see you there!

@Account Closed Totally depends on your goals and what you want to achieve. If cashflow is your goal than I would advise for you to keep looking or make a much lower offer. In Wichita you should be able to find something that is going to bring you a greater return. If this deal is completely turn key, then it may be an okay option, but I think you should offer less to increase your ROI and cashflow.