All Forum Posts by: Tyler Nepote

Quin - I would be hesitant and want to understand the lease before making any firm opinions. However, based on just cap rates and tenant, I don't think it's a great deal. It's not a credit tenant demanding a cap rate similiar to a credit tenant. 

If the tenant were to vacate, what would market rent be? How large is the space? Is a piece of the building (saw the condo fees), or the building itself?

I know BP is primarily focused on residential, however I was wondering if there are any commercial investors OR residential investors that are interested in doing commercial but haven't gotten started yet?

Personally, I do both - I'm more comfortable and familiar with commercial and have a few great deals, I'd love to partner on, discuss, or just share with anyone interested.

Dan: 

PM me. I have a great broker that I use that I know has offices in KC. I do the same thing and it's fantastic for what I'm doing to do. 

I wanted to share my first deal. Purchased a 3 bed/2 ba 1600 sqft house in Wichita, KS. Took down wall paper in kitchen & one bathroom, painted and added new stainless steel appliances. Changed light fixtures, re-carpeted two bedrooms, and did a deep clean. Purchase + Upgrades put me in at $73K. I had it for 6 days, fixed it up, and rented it out at $1,150 on a one year lease. They've been in the house for almost a week now and they're already asking if they could change to a two year lease. I advertised $1,050 for a two year and $1,150 for a one year. So far, this has been a great deal. Some $ figures below:

Cap Rate: 11.5%

CF/Investment: 33%

I learned quite a bit, this being my first deal. I was expecting "finding the deal" to be the hardest part, however I spent over 40 hours at the house cleaning, fixing it up, etc. which was much harder than I thought it would be. I was on a first name basis with the Home Depot cashiers by the end of the week. I also learned it's amazing what a little paint and deep cleaning can do to a property. 

My goal was to have three houses by the end of the year, scheduling to purchase #2 in July/August, however I am already looking because this one went so well. While I bought this property for cash flow, not focusing on appreciation, it appraised at $10K over my all in price, so that was the cherry on top. 

Any fellow Wichita investors - I'm really interested in south Wichita. I know it can be hit and miss and it's the only side of Wichita that I'm not familiar with, so any tips/areas to stay clear of would be greatly appreciated. 

I agree with both of you. Shane has some great points, however I think 2909 Oliver is expensive for what you get and it has the apartment feel - not a "home" feel. I've had multiple friends live there and it's the feedback they've given.

Elliott - I think housing around WSU is going to drastically change. An apartment complex at 17th & Hillside was just sold and is going to be re-developed into a "smart/green" community. As for SFH, there are a lot of bad neighborhoods around WSU that raise concern. With WSU having such a large international student base, there is a need for housing close to campus. I'd be interested to hear what your thoughts are.