All Forum Posts by: Nathan Roberts

That property looks solid, great job @Corey Reuter! What is your estimated ROI? Also, were you all in at $65,000 or was that just the total acquisition cost? Im curious as to what neighborhood this property is located in; I am currently learning the Independence area.

Hi @Rob Bianco,

If you're looking for a partner then the BiggerPockets Forums is the best place to search. You can simply ask around or Private message a few local investors that are willing to partner up with you. Voepel Property Management (VPM) can manage your buy and hold portfolios and can also facilitate and manage the rehabilitation process. I believe they charge about 10 - 12% to manage a rehab but their prices are comparable. They are not the cheapest and not the most expensive by far either. I would recommend contacting a few companies, then go with someone reputable that has cost in the median range. I hope this helps!

Get help from a real estate professional or know an area prior to purchasing a property from a mailing list. Wholesalers tend to underestimate rehab cost and/or overestimate ARV. Often, I see a 2bd/1ba subject property being comped with a 3bd/1ba property located 1+ miles away. For the $100k price range, you will have more competition but it should not be hard right now to find an investment property that meets your criteria.

Hi @Tim Andersen,

Where is this property located? You can find some great rental properties down in Ruskin Hills, Ruskin Heights, and the Fairlane neighborhoods of South KC / Grandview. If investing in this area, I would look for value-add opportunities where you can update the kitchen, bathrooms, and flooring to get an increase in potential rents. With nice amenities and features, you should be able to get $900+ for a 3bd/1ba in these areas. A 1%+ rent-to-purchase price ratio and 10%+ ROI should not be difficult to get in these locations but beware, there are other investors searching for the best deal as well.

Hi @William Hoppes,

Kansas City is definitely a great market to find properties that rent out for at least a 1% rent-to-purchase price ratio and can give you returns of 10%+. Demographics about Kansas City are below:

Population: 489K

Median Home Value: $190K

Median Household Income: $54K

Population growth: 1.26%

Unemployment: 3.6%

Great areas that would suit your criteria will include, but are not limited to, Historic Northeast, Raytown, South KC, Grandview, core of the city between Troost and Paseo from 27th to 63rd street (some pockets will not offer these returns), etc. I believe the best property management company in the city is Voepel Property Management (VPM); they strictly manage investment properties for investors. VPM is able to manage any rehab you may need as well. Let me know if I can help you out in any way, I have a plethora of resources that I can provide to you. Feel free to inbox me!

Hi @Rita Namek,

I would recommend Voepel Property Management (VPM). Before I start, my opinion will be very biased. My brokerage, Canopy Road Real Estate is Voepel Property Managment's sister company; ie, same owner. I personally do not own any buy and hold properties but they are able to do everything under the same roof. Not only do they manage buy and hold properties, VPM can assist with value add opportunities that ultimately increase NOI for their clients. The "Canopy Experience" allows investors to be hands-off from their rental properties all while building wealth in the process. Overall, Voepel Property management can assist investors with acquisitions, sales, renovations, marketing, leasing, tenant selection, screening, etc. Just look Voepel Property Management up on Google. You won't have a hard time finding great reviews. If you have any questions just let me know. Talk with you soon!

Best Regards,

Nathan Roberts

Hi @Jacob Compton,

Everything seems correct with the exception of your mortgage payment. Assuming your down payment is $5280 (3% of the purchase price) and your interest rate is 5.5%, your monthly principal and interest payment will be $969. With total monthly expenses of $1835.52 and a rental value of $1750, this is not a feasible investment due to the cash flow. With that said, single-family homes that are more than $150,000 generally don't provide great cash flow. You can lower your monthly mortgage payment by increasing your down payment. This may ultimately increase you total-out-of-pocket (TOP) amount for the year, which will lower you return on investment, but you will have more cash flow. I would also advise you to purchase a property with a rent-to-purchase price ratio higher than 1%. I can send you an Excel spreadsheet I use for analyzing potential rental properties for my clients; the rental property analysis is definitely useful. 

Thank You,

Nathan Roberts

In order to use a homestyle renovation loan, you need to be living in the property. The homestyle loan is only for owner occupants. I'm not sure if they will lend to an LLC because it is not your personal name. Let me know if you find out different.

Yes, you will be able to refinance into an LLC depending on the mortgage lender; they all have different requirements. You can transfer the property to your llc, deed it, but some lenders may require you to transfer it back. I would ask a few local lenders to verify if they allow you to transfer interest of an owner occupied property to an LLC. Most banks will not refinance unless you've had a mortgage for at least a year. I would shop around until you find one that suits your criteria.

Hi @Scott Marshall,

You have some great apps on your phone. I currently have Homesnap, Zillow, Homespotter, and MileIQ; essentially the same as you. I also have eKEY, RPR, and Dotloop but you need to be a realtor to utilize these apps. I use Homespotter and RPR the most often. RPR stands for Realtor Property Resource, which is a great app for finding property values or neighborhood statistics. I'm curious to hear what others have on their phone.