All Forum Posts by: Chris Dawson

@Eric Lierz I'd be happy to help you find your next investment property.  Investment real estate is all I do.  Let me know how I can help.

@James Ritter, first off, welcome to BP.  Read, Listen, and ask lots of questions of the BP community.

As mentioned by others, your first step is always to define your investing goals.  This should also include your exit strategy.  Once you have these defined, then choose your markets to invest in based on your individual goals.

I would of course love to help you invest in the Kansas City market, but the truth is, there are lots of good markets to invest in across the country.  You need to decide which market is best for you based on the following (there may be more, but this is all I can think of right now):

• Your investment goals - For example, if cash flow is your main goal, then you need to be looking to invest in midwest markets.  If short term appreciation is your goal, then you might want to stay in NY or look for another east or west coast market.
• Study the markets.  There were at least 1/2 a dozen markets mentioned in this thread that could all be good for your investment needs.  Pick the best 2 or 3 and make plans to visit them.  You need to spend at least a couple of days in each market to really get a feel for the market.  Use this time to meet your local RE team.
• Your RE team.  If you are going to invest out of town, it is imperative that you choose your RE team carefully.  You will need a good real estate agent, a good PM, and a good GC that are all local to the market.  You should interview no less than 3 of each of these in EACH market you are looking to invest in.  Search the files on BP for questionnaires to use in your interviews.  Be thorough!  A good RE team can turn a so-so investment into a good producing investment and a bad RE team can turn the best investment into a money pit!   Ask for references.  Ask to see their licenses. Check the BBB, Angie's List, and Yelp.  I can't stress enough how important this step is.  

If you have exhausted yourself with these first three steps and you still have 2 or more markets that look good, then make your final decision based on convenience.  By that I mean choose the market that will be easiest for you to manage.  For example, if you are trying to decide between Kansas City and Atlanta and you have family, friends, and/or work assignments in Atlanta, then by all means, choose Atlanta.  You will be much more likely to be successful and enjoy investing if you choose a market you actually want/need to be in.

Hope this helps and good luck with whatever you decide.

@Jonathan Schneider welcome to Bigger Pockets. You have come to the right place for REI information. I am a real estate broker and investor in the Kansas City area. Let me know if I can be of any service.

@Emily Powell I'd be happy to help you out with any PM needs in Kansas City.  We are listed in the National Association of Residential Property Managers as well.

Let me know how I can help.

Welcome @David Stonner to Bigger Pockets. You have come to the right place for REI advice. Let me know if I can be of any service.

@William S., I have been a licensed agent and investor since 2004.  I have sold hundreds of these types of properties over the past decade.  I have also rehabbed and managed hundreds of them for my clients (and continue to do so).  I have even owned a few myself.  Here is what I can tell you from my experience:

• The returns in these areas are NEVER as high as advertised! Let me say that again. The returns in these areas are NEVER as high as advertised! When a seller or listing agent calculates the ROI, they always leave some key expense out of the equation. It is usually the vacancy rates or the maintenance rates or the leasing fees. Never trust the seller's ROI. Always do your own calculations.
• In the past 12 years, I have yet to see any investor hold one of these properties for 5+ years.  I have seen several 3 and 4 year holds, but never 5 or more.  By the 3rd or 4th year, most investors are either sick and tired of dumping money into the property, or they are tired of trying to find a good property management company.
• These properties require way more effort to manage than a property in a good area which means it costs more money to manage these properties.  Trying to cut costs by finding a cheap PM is the fastest way to fail.  
• These types of properties are great for tax right-offs.  If you are looking to lower your taxable income, this could be a good option for you.
• The few investors that I have seen be successful with these types of properties were highly involved with their investments.  They either managed their properties themselves or they micromanaged their PM.

Despite all of these negatives, if you factor in ALL of the expenses and buy right, you can make good cash flow.  However, if you pay more than $25-$30k for these properties in KC, then you are over paying.

@Jake Allen Hattock, first of all, welcome to BP.  You will find a ton of useful information here.  I would suggest that before you do anything else, you need to decide what is your investment strategy and what are your investment goals.  This will help you answer some of your questions.  I would also suggest that you find yourself a knowledgeable and experienced real estate agent and/or another local investor who is willing to mentor you on your first deal.  

If I can be of any help, let me know.

@Mary Newman, http://www.marei.org/ is the best REI group in Kansas City. They meet once a month. The next monthly meeting is January 12th, but I believe they have something going on tonight for "Women in Real Estate". Check out their website for more details.

@Robin Hunter where in KC are you wanting to live?  It will be tough to find anything more than a duplex for your budget, unless you plan on carrying a gun!  There are, however, several areas of the city that you can find a duplex for under $100k; especially if you are willing to do some work on the property.  

@Alex Larson welcome to BP. I too live up North by Liberty. I'd be happy to meet with you to discuss REI and how we can help each other. Drop me a line.