All Forum Posts by: Nathan Roberts

@Jessica Martinez those on this post said it correctly. You may be able to get a 7% cap on a C-class property but you're not likely to get a 12% - 15% cash on cash return unless you add value through a rehab. Even though Kansas CIty is a great location for cash flowing properties, many people think that you can just buy a property off the MLS to recieve 10%+ return. That could have been the case a few years ago but now you definitely need to value add in order to get the returns you are looking for. If little to no work were needed to get 10%+ returns, everyone would be doing it. You have to be willing to put money in a rehab where it provides advantageous returns ie; painting, kitchen, bathrooms, putting up walls to add an extra bedroom, etc.

@Cade Zerr to answer your question for @Spencer Cornelia, there are multiple resources you can use for rental comps. I like to use Zillow, Rentometer, and Padmapper. These platforms will bring up comps for both single-family and multi-family properties (apartments). If you know the potential rent that a property can get, divide this by the number of rooms. I would charge more rent on a per room basis because potential renters would still pay less money than renting out a 1 bedroom apartment. I'm here to be a resource to the BP community so feel free to reach out if you have any questions.

@Matt Brust

I was born in raised in Columbia, MO plus I have family that reside in Mexico, MO. Personally, I am not an investor, but I represent investors as a real estate consultant with Exp Realty. It is common for any city/town to have nice properties on one block and distressed properties a block away. Prime example of this in Kansas City is what is known as the "Troost Divide". East of Troost it is common to see blighted neighborhoods with distressed properties, and little community resources/assets. On the west side of Troost, you will see properties worth $150k+, less crime (crimereports.com), more community assets, etc. The best thing to do is learn as much as you can about the area. Knowing you are only 30 minutes from Columbia, I would recommend you start investing there due to the housing demand brought on by Mizzou students. It's also a lot easier to assess which neighborhoods are worthy of investing in. You can make money by investing in any part of town (distressed neighborhoods have renters too) but you need to know how to thoroughly screen tenants. A property management company should do this for you but most will not manage below C class properties. If a property manager won't take on a property due to the area, that is a great indication to invest elsewhere. DM if you have any questions, I hope that this helps. 

@Hasan Miller I'm assuming you are wanting to find property owners' contact information? If so, it may be a great idea to pay for white pages. As long as you know the name of the owner you can search them in white pages. A real estate agent in your area should be able to find the names of current owners for you. Also, a secretary of state website may be useful to find information about an LLC in your area as well. A quick search online for skip tracing services will pull up a number of accurate resources. What exactly are you looking for?

@Jazmine Waters

1. If the property was purchased/recorded when the couple was married then they both should have equal ownership. With that said, if the ex-husband died, ownership of the property would depend on if he put anything in his will about the property or not. I would contact a lawyer in your area because the laws will vary state to state.

2. You can find out about liens on the property by contacting a title company. Some states handle transfer of ownership through a law firm as well. 

Contact both a lawyer and a title company for this information. For your first question, you may be able to search in public records for the ownership of the property. Let me know if you have any additional questions. 

@Carlena Alva the best way to find partners is to create them organically. If you are wanting to learn about the fix and flip strategy I would recommend you attend local meetups. Not only will you learn about investing, you also have potential to meet a new partner as well. Books are also a great resource for learning. I may be able to let you borrow a few books if you want. DM me if you need help connecting to a few local meetups or if I can answer any questions. I hope this helps!

@Caleb Brown 

1. The loan you should get (FHA or conventional) would depend on your particular circumstances. If you want to increase your ROI by putting as little capital into the deal it may be ideal to do an FHA. If your goal is to build as much wealth and/or equity than conventional is the way to go. A conventional loan will also allow you to build up equity faster to the point where you can pull out an HELOC on this property.

2. I am not currently investing in real estate but I know many investors that use Voepel Property Management. I would do an online search and ask for referrals to local property managers. Reviews are a great indication into how they treat their tenants and clients. 

3. Partnering on your first deal may not be a bad idea. Assuming everything equal, if you partner with one individual on a deal with the same percentage of ownership, you will make the same return as if you put up all the money and kept all of the cash flow. With a partner you will likely put up half the capital and earn half the cash flow than doing it by yourself. Not to mention how much you would learn if you partnered with an experienced investor. 

@Christopher J Lemmon What area and/or neighborhood is this property in? Your scenario would be the first I have heard where you can rent a $37,500 property for $1450. Areas in KC where a less than 2,000 sqft property can lease out for this amount would be Brookside, Waldo, Plaza, Westport, P&L District (condos/apartments), Quality Hill / Hyde Park, etc. You can't buy a property for $37,500 that's livable in these areas.

I am a real estate consultant based in Kansas City that was born and raised in Columbia, MO (CoMo). I personally don't know anyone fix and flipping in the area but that is something I plan to do when I graduate from UMKC. CoMo is a great area to invest in due to Mizzou's students' housing demands. Let me know if you have questions about the area or if I can help you out in any way. 

@Chris Bisaillon if you have the resources to purchase additional properties thats great. It will take years of passive income to save for a downpayment on another house. Buying this property may be a way to slightly increase the capital you potentially already have saved. Your contracting experience can be an opportunity to add sweat equity. Also, rental properties are less volatile to market changes than fix and flip properties. This will allow your investment to remain safe assuming everything else is good.