All Forum Posts by: Travis Limbocker

@Karla Talancon I'm based in San Francisco and invest in the Kansas City market. Happy to provide more detail if you want to DM me.

@Ofer Dallal thanks for the heads up. This sounds great. Look forward to it.

Thanks @Mike D'Arrigo @Account Closed

@Juan Lozano funny timing. We leave Thursday out to KCMO. Meeting with our crew on the ground out there. Will you be around this weekend? If so, send me a PM and let's try and connect.

@Dmitriy Fomichenko appreciate the shout out and thanks for the insight. Our plans are to focus on MF properties as much as we can. There's some discrepancies across the KCMO area where we're finding rent expenses for MF 1/1 units close to the cost of a SFH 2/1. Why pay for a 1/1 in MF when you can have your own house to yourself for the same or comparable monthly payment? We're being careful here, especially defining what the MF tenant demographic is. Good luck to you as well.

@Jason Hawk we're in KCMO this weekend. If you have time on Saturday or Sunday to grab a coffee, would love to meet up, but understand it's harder on the weekends.

BP Community,

For the past four (4) months I've been reading about all your success stories and chomping at the bit to officially become a real estate investor and landlord of my own property. As they say, you never forget your first :) I'm happy to announce we have closed on our first property and I wanted to post the details of the deal to 1) spread the success back into the community that helped us to achieve our goal and 2) get some feedback

After many weeks of analyzing property in our local market (Bay Area), we quickly became discouraged with the bloated cost of properties out here in CA. I think many of you would agree how ridiculous it is to see a price tag of $850k for a 750 sq/ft home built in the 1950's with the original amenities! No thank you. It was this reason alone that we started to research out of state markets and chat with turnkey providers. During this time, I wrote out a real estate investment (REI) plan to have some frame of reference for what our (wife, partner, and I) investment strategy would be. I have to say I was skeptical about doing this at first, until I put the pen to paper. The magic that happens when you actually sit down to do work and overcome resistance is truly remarkable. The act of writing out our plans helped us to begin formulating more creative strategies for acquiring properties. More on this later.

We found a turnkey provider that had a Duplex on the market in Kansas City, MO, which seemed to fit our deal criteria. As new investors, we ran the numbers 100 times, and finally felt comfortable with them. Long story short, we found a national lender locally in the Bay Area, worked through the lending process, and after ~40 days, closed on the property. 

Numbers:

-75% LTV @ 4.25% interest rate

-Sale price: $138k

-Appraised value: $144K (woot woot equity!)

-Gross Income: $1,700 / month

-NOI: ~$1,150

-Mortgage: $509

-Cash Flow (with maintenance, CapEx, and vacancy): ~$620 / month

-Cap Rate 9.6%

-CoC: 19.5%

Admittedly, turn key was even more simple than we expected. As new investors we probably over-analyzed and thought too much into it at times. It really does take actually going through a deal to learn that it's not as intimidating as it may seem on the surface. 

We're extremely excited to finally be a part of this community, and can't express our appreciation enough for all the folks that helped us pursue our first property. We're chomping at the bit to find the next one!

@Derek Lacy @Joe Splitrock thank you for the words of advise. You see countless posts going back and forth on the matter. Truly makes a difference in perception when you break down that extra $300k for just $200 a year ;) 

Hey BP,

I started my personal REI journey 3 months ago and am happy to announce we're in the process of closing on our first multi family deal! It's been a very educational process going through the steps to executing on our first deal. As a lot of you have said, it's all about taking action, or as I like to put it, just try.

I had a question for new and seasoned investors alike regarding Umbrella insurance policies. Now I'v read the forms, but nowhere in the thousands of posts does someone have an anecdote from their personal experience. I understand the arguments on both sides for an LLC vs additional liability (umbrella) insurance. We are not starting with an LLC, so let's take that off the table. I'm curious if anyone has a real life example of how Umbrella insurance saved them from a lawsuit? Because we'll only have one (1) property to start (duplex), would it make sense to pursue adding greater protection?

Any thoughts / examples?

@Adam Sharp I'm a local Bay Area native investing out of state. As @Ali Boone recommended, I would nail down the "why" behind your investment decision and map that into your specific goals first. If that's done, you're  already building steam! 

In terms of turnkey, I started working with Mike D'Arrigo recently. I can add to the above synopsis that he and his team (Pinnacle Investments) have been great to work with. We're in the middle of closing on our first property with them, which has been very smooth thus far (knock on wood). Our strategy here is to use this first property to build our network of "ground forces" in KCMO, which you ABSOLUTELY need if you're not going to be on the ground yourself IMHO. 

@Nicholas Lohr makes a great point in that you will not get as attractive returns with turnkey and, more importantly, won't learn as much about the business. Trial by fire has it's benefits. I'm still learning the process myself, and turnkey is a great way to begin the education path via taking action, with relatively low amounts of risk. It's better than doing nothing.

If you have anymore questions on KCMO turnkey, I'd be happy to provide more details of my experience. Feel free to DM me. Good luck!

Great info folks. I'm a first-time investor and looking to start down my own path in the KC area via turnkey multi family properties. Anybody recently invest in the Raytown and Grandview area that could share some of their experience? Looking at properties east where Bannister Rd the Raytown Rd cross. Any thoughts on this area? Have a duplex with a cost of $138k, but can't find any comps in the area.

I've begun looking at properties invested and appreciate all the initial responses from @David McKeever @Leslie B. and @Thor M.. 

I'm interested if anyone has experience investing in 95203, which is South Stockton and close to "hotter" crime zones. This area seems to be transitional, in that there are many nice MF homes that have obviously been invested in, but are right next to abandoned homes. 

Anybody have experience in these neighborhoods?