All Forum Posts by: Salil J.

Thank you, @Alex Olson. Very helpful! I watched your video about KC submarkets, which I believe is the one you were referring to. If there's a video specific to Leavenworth county, I did not find it.

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Kansas City, Kansas

Anyone here investing in Tonganoxie & surrounding areas? What makes you feel bullish about that town?

A couple of questions:

1) Apart from the panasonic plant & Hill science plant, what are the other job drivers here?

2) Is it fair to consider Tonganoxie part of the Kansas City MSA, or is that stretching the truth too far?

1 Vote

Kansas City, Kansas

Any current or former students of Jake & Gino here? Would love to connect - had some questions I would appreciate input on.

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San Francisco, California

Quote from @Julien Teoulet:

Hi Salil,

South 630 is generally to "avoid" in Little Rock, but you can find some cheap house that can generate cash flow. I have not done any study, my recommendation is strickly based on my knowledge of the town but you should be looking for houses as close as possible to the 630/430 intersection (west of John Borrow and north of 36th st), it appears (to me) to be the cleanest area. There are also some new constructions there , increasing the overall value of the area.

I don't think there is anything slowing down market in Little Rock. There is a major downtown gentrification in work. Supply was already limited before covid and went to almost none since then. I believe Little Rock is just going thru some normal patern with still limited supply, high rates and people staying in their 3% mortgage house.

Again, I am not a professional, just a local (locking fwd to buy my first rental)

@Julien Teoulet: first off, wish you all the best for your REI journey!

Thank you so much for sharing! How long have you been in LR?

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Little Rock, Arkansas

Anyone here can share any insights about 72204, specifically the “John Barrow” area south of 630 and east of 430 and north of 70?

I’m looking at potential investment properties there, and I’m primarily focused on cash flowing properties.

More generally, is the Little Rock real estate market slowing down recently? I’m seeing properties stay on the market a lot longer. Apart from the obvious interest rate and potential (?)recession that’s affecting most markets, is something Little Rock specific happening ?
Any insights appreciated!

1 Vote

Little Rock, Arkansas

Quote from @Theresa Harris:

I'd check with other PM. I know for some 1 months' rent is common (not where I am), but that should include showing the place and everything. What else are they doing for the additional $2-2.5K? Are the places in rough shape and need new painting, flooring, etc?

The tenants have been around for some years now, so I believe painting is going to be on the menu. Flooring, I don’t think. As you can guess, I’ve not sorted out those details yet - will go through that if the tenants decide to move out.

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Columbus, Ohio

Thank you all, for the insights. I'm moving forward with option #2. I'm especially concerned about getting stuck in a rent-cap nightmare that @Bill B. pointed out.

@Bill Brandt: Yes, those rent numbers came from my PM.

@Theresa Harris - My PM quoted me a $2000-$2500 turn cost to get each unit rent-ready. And the lease fee is 1 month's rent ($2000).

@Nathan Gesner Thanks for your input, definitely food for thought.

@Alan Asriants I was told it's not hard to get units rented in the area, if priced right.

@Bob Stevens I hear you, but I'm going to take the risk instead of getting caught in potential rent-cap nightmare. Not that I am aware of any such developments happening specifically in Ohio/Columbus.

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Columbus, Ohio

Hi BP folks,

Looking for some advice here. I acquired a duplex (one 2Bd/1ba, one 3Bd/1ba) in the Holly Hill / Hilltop area near West Frankin Elementary school in April 2021. It came with good long-term tenants who have been paying on time and have not caused any issues.

For reasons I myself do not know, the topic of increasing their rents never came up between my property manager and me. The 2Bd/1ba tenant is paying $625 (+water bill) and the 3Bd/1ba tenant is paying $700 (+water bill). The market rent is $900 & $1100 respectively.

I have the choice of:

1) Being conservative in bumping up the rent (PM recommended $675 & $750). This comes with a comparatively lesser likelihood of tenants moving out and gives me $1425 * 12 = $17100 annually.

2) Pushing an aggressive rent increase ($800+ & $1000+) and risk tenants moving out. Replacing tenants would mean ~$7000 costs (1 month of lease fees ~$2000 and turn costs ~2500 per unit), but assuming I am able to find tenants at market rate then I'll get 2000 * 12 = $24000 annually.

I'm inclined to go with #2. I figure 1) it'll take approximately a year to recover the $7000 turn costs 2) with option #1, it's going to take me years to get the rents up to market rate.

Is the rental market in that area conducive for this aggressive approach, or would you recommend caution? Am I missing something in the equation here?

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Columbus, Ohio