All Forum Posts by: Lee Ripma

Quote from @Matt C.:

@Lee Ripma - What are your thoughts on the new housing ordinances in KC?

I moved to KC from LA so I’m used to tenant’s rights including rent control. The new ordinance only applies in the city of Kansas City, Missouri (KCMO). There at lots of great suburban markets where the ordinance doesn’t apply such as  Independence, Raytown, Blue Springs, and Overland Park. Even though an investor could easily avoid KCMO the tenant’s rights are not onerous at all and I don’t think they should dissuade anyone from investing in KCMO! Kansas and Missouri are still incredibly landlord friendly. 

Quote from @Matt C.:

Quote from @Nicholas L.:

@Matt C.

just to be direct, cash flow has really been compressed everywhere. unless you have some kind of advantage, or creative strategy, or both (boots on the ground, sourcing quality off market deals, MTR or STR, house hacking, etc.) there is really no market where you can get a few hundred plus in cash flow with current off the shelf rates.

you should 10000000000000000000% not buy a random property in Memphis because an Excel sheet tells you you will make $212 a month on it.

if you want to go to Memphis and spend a few weeks there, drive around, meet PMs and other investors, and really lean in - go for it.  it's just a really tough time to Internet your way to success.

@Jonathan Greene

you need to link to your other post about how to pick a market.  or put that in your signature block =)

 Totally get that. We aren't making moves solely because something looks good on paper. In Memphis, we are looking in very, very specific areas. Same as in Detroit. 

KC is looking halfway decent for a househack but seems to be getting some fairly consistent numbers without it. These last two weeks have been non-stop calls with PMs in all of these markets, but right now, leaning in on KC a bit more because we love that city. 

@Matt C.
solve this problem with vestmap, location data for any location in the US. 

I was an out of state investor in KC for years before covid. Once covid hit KC looked so much more livable and I made the move. 373 is my BP podcast episode before the move!

@Sandeep Dhall

I use DIY and I love them for the algorithm-based studies. Feel free to DM for a discount code. I personally do a cost seg on every single property I buy (This is not tax or legal advice). 

@Carter Manley

Results are instant! 

@Marcelo Murai - you know what you are looking for, so you’re already 90% of the way there! Couple great pockets for exactly what you describe by KU Med on both the KS and MO side, 64111 and 66103 would be the relevant zip codes. Also some great pockets by UMKC and Rockhurst. We only sell MF in KC so feel free to checkout our brokerage website for some great resources! 

Quote from @Zack Whitworth:

Hello, I'm new to BiggerPockets this year and have been sitting on cash for a while as I gauged my interest in continuing down the stock market path, or pivoting to real estate investing. I've decided on REI and used BP to find a solid positive cashflow 2-unit home.

I'm in the inspection period now with a closing date on March 7th.  Needing to find reputable general contractors for quick rehab on the 2br 1ba unit in Kansas City, MO area.

Any KC investors out there who could help me out? Thanks!

Hi Zack, 

Feel free to send me a DM and I’ll send you a few contractors to reach out to!

I’m an investor and an agent in KC.

Way to get going in RE, it’ll change your life! 

In this case I would personally use DIY cost seg, they offer audit protection. I do studies with them even on small props. Feel free to DM me for a discount code. 

Not tax or legal advice, just what I personally do! 

@Michael Doughty 

As others have said it’s more about you and your plans, income, etc because the question is really is cost seg worth it for me this year on this house. If I were answering that question the answer for me would be yes. I do cost segs on every property I buy and I benefit from those studies in the form of significant tax savings (I use an inexpensive algorithm based study, DM me for the name). 
Not tax or legal advice so seek your own professionals! 

The thing I don't like about the calculator is that it puts capital expenses (CapEx) with operating expenses (OpEx) I often see folks use it with high capex and incorrect assumptions about opex costs making every deal not pencil. @Nicholas L. is right, prices and rates are high so cash flow is eaten up by debt service. However there is a little less competition and some downward pressure on pricing. Rates won’t be at 7.5% forever. So keep thar in mind as you use the calculators! 

I like Sideline for just one person.