All Forum Posts by: Rich Kniss

@Cody Rosenbalm, the exit strategy is the same. The price is different, except that right now we are seeing larger profit margin potential. @Evan Polaski Has it right on what a “c” neighborhood is.  Just know your buyer is different and cater to that.

@James Rodenberg, I think you can make either work, depending on what you want. There is no wrong answer. We chose to go with a PM, so we could focus more on new investment opportunities and minimize impact on our day job. 

For me, the 10% has been worth it. Just be aware of the added services/costs, such as yearly inspection services, repairs, etc. Its nice to have the little stuff taken care of, but I'd get bids on larger repairs rather than automatically going with their guys. I've found they have good subcontrators to draw from and complete it in a timely manner, but it comes at a premium. 

It's kind of like hiring an accountant to me. I could do it myself, but....

An investor friend of mine is purchasing a SFR. The tenants had done a lot of smoking to the point of staining the walls. Will replacing carpet & pad, and all new paint take care of it, or are other measures in order? I'd like to hear from anyone who has experienced this.

Thanks, Rich

The costs seem reasonable, except for the painting costs. Are you replacing outlets to go from two prong to three prong? They can’t all be bad at the same time. I’d keep the ceiling fans. If you have a property manager, they (or you) should absolutely try to recoup costs from the tenant.

@Michael Bachmann Nice job! The quality shows through the photos. I've gone the the Jackson County tax sale a few times but didn't come away with anything. Glad to see it works.

@Carissa Pentimone, welcome to BP and the wonderful world of real estate investing. It sounds like you are doing all the right things. I'd also try to get to a few of the many meetups in town (virtual or otherwise). Start running the numbers on some properties you see for practice, so you know what a good deal looks like. Happy to answer any questions you may have.

Of what you mentioned, Raytown is your best bet(but not too far north). The rest are very stable areas on the higher end. 

@Jeremy Barren, to start our business, I got a HELOC on my personal home, using the equity we had built up. It is an interest only loan for 10 years (good way to go), and then converts to principal and interest. For our business, we bought a rental with cash and own it outright. We use it a collateral for a business line of credit (LOC). The bank loaned us 75% loan to value (LTV), but should be able to go 80% LTV next time. The process was fairly painless after the paperwork. They perform an appraisal and loan off that value. I hope that helps.

@Percy Matsunaga, I live in Kansas and my partner lives in Missouri. Our LLC is in Missouri, as most of our properties are in Missouri. I'm honestly not certain about asset protection. I just know most of the investors are on the Missouri side.

@Elijah Rembert, I like getting a HELOC on my mortgage. That way you have the down payment whenever you need it, as many times as you need it. I hope that helps.