All Forum Posts by: Micah Thomas

@William S. they also happen to be one of the most budget friendly options at 7% of collected rents.

I trust Chris Tierney with Rent Robin.

@Aaron Arnold 35 units is awesome. 6% cap rate is terrible, unless like @Matt Altrich said you're in Johnson County, Kansas and even in a place like that you can find a better deal than a 6% cap rate. Quick math if they rent for $350 each and you're fully occupied you'll pull in $12,250 per month gross. Without knowing anything about expenses, maintenance, or property tax let's just multiply the monthly gross by 10 and leave the other 2 months for expenses. 10% for management (you can find lower, but let's stay conservative) gets you to $107,800 per year NOI. Again, awesome. But at a 6% cap rate that would be priced at $1.8 million. Higher if I overshot on expenses. Does that seem accurate? My hunch is something is off... If you're looking around the St. Joseph area the deals I have evaluated up there are far better than a 6% cap rate. Feel free to shoot me a message if you want to chat more.

@William S. did you see 6700 W 81st? It's still active on the market right now. With 4 beds it should rent for $1,700 - $1,800 a month which would get it pretty close to that 1% rule. My 4 bed at 7801 W 80th is at $1,700 a month and similar square footage. Definitely agree they are hard to find in OP. I monitor 66204 daily and there have been a few over the last couple of months that come on around $100k but need significant work.

@William S. In Kansas City for single family homes, it's what every investor I work with is looking for, but every decent listing in a decent area seems to be at a 7-8% cap rate these days. I think most of that is due to owner-occupant demand driving prices up. More often I have found that investors have to buy distressed or outdated and then do a light rehab in order to achieve 1%. The caveat would always be it really depends on the area you are looking in as there are certainly 1% or greater deals in more risky areas.

Thanks @Logan Freeman! @Nick W. and @Nick Rini I'm happy to hear what you're looking for and I can send some ideas your way.

@Nick W. what parts of KC have you been looking in? I’d be happy to send you some ideas. Let me know. 

Hey @Nick W. Kansas City continues to be a great place to invest. It's always changing, but there are opportunities for all kinds of investors. What specifically are you interested in?

I have a couple of friends who have made it through the special use permit process with KCK. 8 weeks start to finish. My understanding was that as long as you follow the steps they do not deny anyone, so this is the first I have heard of them not issuing the special use permit. Were neighbors vocal against it?

I'm interested to hear anyone's experience with short term rentals on the Kansas side in the KU Med area. I have helped several investors buy there recently and some have been telling me that they are curious about the STR and hospitality house market (like when a family member is having surgery and perhaps needing a month long stay near the hospital). Is anybody doing it, and what kinds of booking rates are you getting?