All Forum Posts by: Milton Chamberlain

I would probably look at the components of the house that are frequent headaches/money pits, and determine their condition.

Roof, windows, HVAC, Main sewer line, appliances, etc.

If you pretty much gut the place and make everything new, I would say save less. 5% on the high side and then at the end of the year, reassess.

If the components are older and towards the end of their life and you don't plan to fix them upfront, probably go as high as you can afford and makes sense...10% or more? 

Sure! Yes Columbia is a great town, and my hometown. I have only been purchasing there bc I buy off market properties from a family member as he decides to sell. The Columbia Realtors association has all of their data locked down pretty tight, so I can't compare investment analysis and data to the KC market. So I am not 100% sure how it compares with KC in regard to going cap rates, cash flow, COC returns, and all of the various rules we look for as investors.

 Its a BIG College town (Mizzou, Columbia College, Stephens, along with many smaller community colleges), but also has enough industry (Veterans United, University hospitals, factory work, Cerner, etc) to be self sustaining enough (meaning the local economy is not 100% dependent on the state university) to have a healthy and growing pool of great tenants. So I would say if you are finding luck there, keep on hunting there! If you would like a referral for a great investment minded realtor there, let me know!

sounds pretty good to me, but I would need to know more data to really give an opinion (part of town/market rents, How much work needs to be done, # of beds and baths etc) 

I don't think you over paid, but its bought now! so that's in the past!

I own three single families in Columbia (1 in Indian hills and 2 in the center of town between stadium and providence, near downtown)

We have rehabbed one (put $35,000 in it to increase rent from 900 -> $1200 a year ago) and are currently putting 50k into Ione to increase rent from 700->1200)

Call if you ever want to chat

I have never worked or spent time in harrisonville. So no primary experience or knowledge. 

I would agree that there are certain areas and neighborhoods in claycomo that could be categorized as “less than C+”, but I would not consider Claycomo as a whole as less than a C+. 

I like Frank Lewis. He is very knowledgeable and hosts the north Kansas City investors meet up every month. He manage his properties all over the Kansas City Metro, boasts never having had to evict a tenant he placed, And has many great references are in great knowledge about specific markets within the Kansas City metro

In my opinion:
Considering Leawood, Overland Park, Parkville, Lee Summit, certain parts of downtown, etc as A neighborhoods in regards to property value, crime rates, public school ratings, rent values, etc, I would say you could consider
• Liberty
• Platte City
• Olathe
• Grain valley

As B-B+, along with Shawnee and Blue Springs, smithville, N KC.

with places like Kearney, Gladstone hot on their heels
KCRAR website has great market stats showing market appreciation, inventory, and average sale price

I have had success with bank of the west. There is a location up in Liberty, MO where I live. I was under the impression they would allow you to pull a HELOC out of an investment property.

I have only ever pulled one out on my primary, so I can't confirm this for sure. For my Primary it was pretty standard, 80% of the equity and the rate was I believe low fives. I believe it was interest only payments until year five when the total sum borrowed is due. But don't quote me on that. I will do some more homework though and get back to you.

Ron Ireland is an investor/lender who is very active in the KC metro investment groups. He would probably be a good guy to call and to get more accurate info pertaining to HELOCS and cash out refis

Hi Jerry, 

This is interesting and I would love to chat to learn more. Did you use a FHA loan to purchase your first loan? I assume your lender would have been on top of this, but using an FHA loan is a great way to get into a duplex as an owner occupant for 3.5% down. But you can only use one FHA loan at a time.

I have a couple lenders I could introduce you to to see if they have some different strategies you could utilize

If its a rehab loan meaning you aren't under contract yet, and want to wrap up the SOW rehab cost in with the offer to purchase price, I know Robert Hastings with UHM out of Lees Summit offers a loan like that. I have never used it, so I can't speak to how it works in reality, but my understanding is you need a licensed and insured contractor to fill out a few simple forms, and then they have to be willing to work with the lender in regards to communication.

Hi Quinn!

KC is a great place to invest. Especially if you are planning on house hacking into a duplex with a 3.5% down FHA loan. There are tons popping up around the metro now that the spring market is starting to hit!

Tons of different strategies though! That method is just the path of least resistance for beginners, in my opinion.

If you ever want to chat, shoot me a message!