All Forum Posts by: Matt Altrich

I knocked on the door of a vacant A class property.  A neighbor came out and provided the contact information of the grandchildren.  I bought the house for 45K and didn't own any tools.  I fixed it up and leased it for $1450 - I was hooked.  The property appraised for 190K.  

I agree with @Greg M.  I lease A class homes with all the extra amenities and they lease within 2 weeks for a premium.  They all have USB outlets, elongated comfort height stools, Nest theromstats, LED lighting, etc.  I don't think they stay longer because of this though.  If anything, they might move more often because they all make a great living and are going through life transitions (getting married, buying a home, graduating from graduate school, etc).  If anything, I wonder if the age of the tenant would influence how often they relocate.  I would assume that older adults would be more likely to settle in one place if the home was reasonably priced and clean.   

@Dean Attali sorry for the delay, I missed your question. I don't have any data to support that these amenities add to the monthly rent but I like this think they make big difference. All of my tenants make a six figure salary and I think they enjoy the perks of my homes. I personally will not offer on duplexes over 200K - the MF market is grossly inflated in my opinion and people are greedy/buying high. It's no different than the stock market when everyone buys stocks when they go up and sell when they go down. We are wired backwards and should be doing the opposite but that takes nerves of steel. Afterall, no one wants to buy a declining asset because that doesn't make us feel good. I've been able to find great properties via wholesalers/marketing campaigns. I also would never buy any property with HOA fees (just my strategy). @John Webber typically my properties are leased within 2 weeks.  I have all my leases begin/end in the Spring/Early Summer even if I have to put them on an 18th month lease to get them on my schedule.  @William S. there just aren't many 4-plexes in OP to begin with. You would actually be better off trying to find a 5-plex or higher (if a 5-plex even exists in this market) because anything over 4 is considered commercial. Unlike residential, commercial is bought and sold based on NOI. Definitely do your research though and get educated before diving into a commercial deal. @Jessica Trombley have you considered doing an Airbnb?  Congratulations on your new property in Lees Summit - that's a great area!  Were you happy with the rehab that was completed on the property?  How extensive was it (approx budget)?  Can you send me a PM with your contractor info?  I might have a few more questions for you if you don't mind.  Thanks so much!     

@Micah Thomas yes, from what he told me, the neighbors were vehemently opposed from what he told me (this was also in Rosedale).  

I own property in Rosedale and was considering doing an Airbnb.    One of my friends is currently going through a LENGTHY court battle to get his approved.  You have to apply for a special permit, go to court 3x, hold public meetings and invite the neighbors.  He was initially denied and had to hire legal counsel to fight it.   If he gets approval,  I may go down the same path.  

Hi @Adam Sankowski,

I'm a fellow Bostonian that is now living and investing in the KC market.  I personally agree with @Luther Wilson III regarding location and I invest mainly in A class areas.  I think I'm in the minority though as most people (esp. out of state investors) are chasing the returns they see on paper of the lower class properties (C/D).  There aren't any free lunches in this world and you often pay for what you get.  Those lower priced homes are sometimes profitable but often come with higher maintenance/expenses due to the tenants you're attracting.  With this said, some investors specialize in this market but it's not for me.  I'm in this for the long-haul and want the absoloute best investments I can afford that will cashflow and (hopefully) appreciate.  No, I won't be be able to scale to 100+ A class doors but that is not my investment strategy either.  @Jake Riordan mentioned Raytown and a few other areas that appear to be a good compromise for someone wanting a good cash-flowing property in a C neighborhood.  I can't personally speak to these areas but I know they are popular for local investors.   

Luther, we need to meetup sometime and chat real estate.  Shoot me a PM and we can get something on the books.  

I live and invest in the Kansas City market and I would personally never invest in a 20K house.  In fact, you couldn't gift one to me.   You pay for what you get.  I'm guessing the property is a D class property and in a war-zone (some investors specialize in these!).  You'll have greater expenses due to property damage and the type of tenant you'll be attracting.  In general, cheap rent equals higher maintenance/expenses.  On top of that, Kansas City has implemented pretty strict inspections for landlords which is also eating at your bottom line.  Many landlords are leaving KC due to the hassle of the inspections and having to go to court.   Bottom line: do your homework.  If it's too good to be true - it probably is.  The market is hot and the entire world is looking to KC as an investment vehicle.    

I also would never buy any asset without doing my due diligence.  For me, that includes knowing the asset inside and out. That's tough to do if you are going in blind without a team on the ground.  You might be better off with a turn-key property but even those require a lot of due diligence.  Plenty of investors have lost money on those from companies that over promise and under deliver.  

Keep us posted if you pull the trigger on a 20K property and how it turns out.  

Hi Carla, 

I'm an investor from your neighborhood and recently had the same question.  REIPro was recommended by another local investor.  

Let me know what you end up using and how it works.  

Welcome Matt! I'm an investor with a focus on Johnson County, KS.  Reach out anytime if I can be of assistance.

Yes, send me a PM and I'll share my contact.