All Forum Posts by: Josh H.

Lee hit the nail on the head. I think 400K would even be a stretch and certainly a huge bite for you to take on given the circumstances. I would suggest running the numbers from a high level, think about what you could charge for rent, and how big of dent it would make to your financials should you have higher than expected vacancy (which is a very real thing). Also, FHA's are great in the sense that you can access the market at a very low capital outlay, but it's important to think about what comes along with that low down payment...a hefty monthly payment. That's just my opinion. For us younger types, adopting the house-hack strategy as soon and as long as possible is huge. I am all about the strategy, as long as it makes sense.

 Kim is correct. For a multitude of reasons, the appraiser or appraisal company you use will be dependent on who refi's your property. 

Ryan, 

I am not a TK provider nor I have ever bought one of their products. However, as a KC local investor, I would definitely pay attention to what area the properties are located in. 

@Jay Hinrichs mentioned this as well. 

From my personal browsing of some of the TK providers' inventory, I have found that there are a lot of properties that are in not so great areas (personal opinion of course) whose economics look great on paper. So keep an eye out for that and really think about what your risk-return profile is. I will say--and it is evident from the forums--that many people have had great success with the local KC TK providers.

Best of luck, I'm sure you will find something that fits your investment profile!    

Hey Brian, I agree with Matt. I also happen to own houses in both Brookside and Waldo.

We all have our own opinions, but I would slightly disagree with the comment about inflated prices. I think homes in BS are very inflated, especially year over year. However, that's not to say that they won't continue to rise...million dollar question.  

Hi Adam, I sure do as a local Kansas City investor. Send me a PM and I'm happy to share. 

Hi Eric, I am currently using Centennial Title (Jeff Miller) on a deal, has been smooth so far and closes this month. I completely agree with you that the volume a client brings in should be valued. I would be interested to hear about the issues you've been having via DM if you care to share. 

Great points @Gregory N. 

Personally, I feel like at that class (B), you should be able to find a property that allows you the 'chance' to receive appreciation gains on the back end and ultimately strengthening or providing a positive exit strategy. 7% isn't bad, nor is it great in my opinion. Let me ask you this, would you rather take a 6% CAP in trade for average appreciation?

I think people often neglect to take in the time value of money in their investment decisions, an $80K house now, certainly is not the same as $80k 10 years from now.  

Good question, yes. He did a cash out refi 7 years ago for $20k more than he bought the house for, I am amazed he was able to pull that, must have been the timing. The house would never appraise for that amount now.  

Yes, leveraged. I would like to stray away from the ins-and-outs of my particular deal and focus on the concept in general of buying to receive average to good returns with no appreciation. If this property were located in the not so great neighborhoods of KC, I would not be shocked by the fact the home value has not risen and likely wont for a long time. But, to me it is a little hard to take in that it is in a significantly better area, much higher price point and has shown no appreciation in whats been a great local market. 

Long story short I have an opportunity to purchase a 2bd 1 bth non-listed home straight from the seller (financing already lined up) that is fundamentally sound. New roof, new AC, relatively new furnace and house has current tenant that wants to re-sign. 

The house is in a decent area (call it class B $80-100K) very close to the really nice areas however it is on a busy street where houses tend to sit on the market for a long time and historically do not appreciate. I have looked at the historicals for many of the houses on the same street and they are selling for the same price that they were bought for 10-15 years ago and show little fluctuation in between. This house is in Kansas City, MO an area that is experiencing phenomenal growth and increases in property values. 

The house has a 7% CAP and has no problem getting rented and receives quality tenants. I have received all the records for the house and copies of past leases, the house has never sat vacant for longer than a week in between tenants.

So, the magic question. Is it still a 'good' investment knowing that it is very unlikely that the house will ever appreciate? I never bank on appreciation or factor it into any calculations, but I think we all agree that it is a very nice added bonus when our property has a chance to appreciate at the very least with the market trend.  The owner has owned the house for 12 years (rental for 7) and is selling to me at less than he bought it for, slightly lower than loan current loan amount. 

My strategy is buy and hold. Some might be asking why I am worried about resale, but I think there are many obvious reasons as to why it is still an important trait regardless of strategy. 

Any thoughts or comments would be appreciated, I always enjoy other people's perspectives.