Getting Started with Real Estate Investing - House Hacking and SFR - Kansas City, MO

Kansas City, Missouri
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Getting Started with Real Estate Investing - House Hacking and SFR - Kansas City, MO

Mitchell Bumgardner
Member since 2023 · 10 posts · 3 votes

Hello everyone,

My name is Mitch, and I am new to the Real Estate Investing world. I am in the United States Air Force and just moved to Whiteman AFB, MO. 

I will be looking to buy my first property next summer, closer to my current location but still within a 60-mile radius of KC, and my focus will be to start with a house hacking strategy or SFR to just get my foot in the door and start building some momentum. Ultimately, my goal is to build a solid and steady real estate portfolio using the long-term/BRRR approach. My main interest lies in investing in properties that will provide positive cash flow, rather than overall Appreciation and ROI.

For the time being, I am just trying to research and learn as much as possible. I would love to start expanding my network now to connect with other military members perusing similar goals, as well as any agents, investors and contractors in the area.

I look forward to getting to know you all and I am happy to be here.

Thank you!

-Mitch

1Reply
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Most Popular Reply

Michael SmytheBusiness Member
Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
3y

Couple thoughts:

1) Buy a 2-4 family, live in one unit, rent the rest for cashflow, but more importantly - experience!

2) Keep in mind at least 95% of agents are CLUELESS when it comes to working with investors. Most only deal with owner-occupied properties. Ask how many rentals they own before dealing with them.

3) Learn the differences between investing in Class A, B, C & D rentals. See below:

In our OPINION (always verify yourself!):

Class A Properties:
Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.
Vacancy Est: Historically 10%, 5% the more recent norm.
Tenants: Majority will have FICO scores of 680+.

Class B Properties:
Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.
Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.
Tenants: Majority will have FICO scores of 620+, some blemishes, but should have no evictions in last 5 years

Class C Properties:
Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation. Can try to reposition to Class B, but neighborhood may impede these efforts.
Vacancy Est: Historically 10%, but 15-20% should often be used to also cover nonpayment & evictions.
Tenants: majority will have FICO scores of 560-600, many blemishes, but should have no evictions in last 2 years. Verifying previous 2-years of rental history very important!

Class D Properties:
Cashflow vs Appreciation: Typically, all cashflow with zero or negative relative rent & value appreciation
Vacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.
Tenants: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Make sure you understand the Class of properties you are looking at and the corresponding results to expect.

Logical Property Management4.9459 Reviews
WebsiteView Page
2Reply
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20 Replies

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  • Courtney Domann
    Real Estate Agent · Kansas City, MO · Member since 2023 · 37 posts · 13 votes
    3y

    Hey Mitchell! I'm a licensed agent in the KC area and I deal specifically with SFH investment properties. I'd love to connect with you! Welcome to Missouri!

    0Reply
  • Jordyn Newman
    Real Estate Agent · St. Louis · Member since 2023 · 45 posts · 16 votes
    3y

    Welcome Mitch! I'm an agent in St. Louis, but I have plenty of friends in KC that work in the REI scene. I'd be more than happy to connect you, good luck with your journey!

    1Reply
  • Mackaylee BeachPro Member
    Real Estate Agent · Kansas City, MO · Member since 2020 · 1k+ posts · 495 votes
    3y

    Hey Mitchell,

    Welcome to the real estate investing world!

    I've worked with hundreds of investors over the past 8 yrs.

    I'd be happy to assist you and answer any questions you may have.

    [email protected]
    1Reply
  • Mitchell Bumgardner
    OP
    Member since 2023 · 10 posts · 3 votes
    3y
    Quote from @Mackaylee Beach:

    Hey Mitchell,

    Welcome to the real estate investing world!

    I've worked with hundreds of investors over the past 8 yrs.

    I'd be happy to assist you and answer any questions you may have.


     Thank you for reaching out! I really appreciate that! I will be sure to reach out!

    1Reply
  • Mitchell Bumgardner
    OP
    Member since 2023 · 10 posts · 3 votes
    3y
    Quote from @Courtney Domann:

    Hey Mitchell! I'm a licensed agent in the KC area and I deal specifically with SFH investment properties. I'd love to connect with you! Welcome to Missouri!


     Thanks for the welcome! That sounds great! I will be sure to reach out if I have any questions. Same goes for you! Feel free to reach any time!

    0Reply
  • Mitchell Bumgardner
    OP
    Member since 2023 · 10 posts · 3 votes
    3y
    Quote from @Jordyn Newman:

    Welcome Mitch! I'm an agent in St. Louis, but I have plenty of friends in KC that work in the REI scene. I'd be more than happy to connect you, good luck with your journey!


     That would be amazing Jordyn! Thank you so much for helping me.

    0Reply
  • Dan Krupa
    Real Estate Broker · Phoenix, AZ · Member since 2013 · 749 posts · 399 votes
    3y

    @Mitchell Bumgardner Please don't hesitate to send me a direct message. I served in the Army for 13 years before medically retiring. I am a broker in multiple states and also own a property management company. In addition, I have successfully flipped and BRRRed over 160 properties for both myself and my clients. I have an extensive portfolio and have completed over 300 transactions. All of this has been accomplished within the past 6 years since leaving the Army, while still managing to prioritize family time. I am happy to lend a helping hand and share my knowledge with veterans and active duty members. 

    1Reply
  • William Naber
    MO · Member since 2020 · 19 posts · 7 votes
    3y

    @Mitchell Bumgardner I am always looking for end buyers in the KC area. I can help you connect on creative deals to keep your acquisition costs to a minimum. I’m not an agent, just a fellow investor. Let me know if you have a specific buy box and buy criteria.

    1Reply
  • Mitchell Bumgardner
    OP
    Member since 2023 · 10 posts · 3 votes
    3y
    Quote from @Dan Krupa:

    @Mitchell Bumgardner Please don't hesitate to send me a direct message. I served in the Army for 13 years before medically retiring. I am a broker in multiple states and also own a property management company. In addition, I have successfully flipped and BRRRed over 160 properties for both myself and my clients. I have an extensive portfolio and have completed over 300 transactions. All of this has been accomplished within the past 6 years since leaving the Army, while still managing to prioritize family time. I am happy to lend a helping hand and share my knowledge with veterans and active duty members. 

    Wow! That’s incredible! Thank you for reaching out! I will be sure to keep in touch! Thanks again!
    1Reply
  • Mitchell Bumgardner
    OP
    Member since 2023 · 10 posts · 3 votes
    3y
    Quote from @William Naber:

    @Mitchell Bumgardner I am always looking for end buyers in the KC area. I can help you connect on creative deals to keep your acquisition costs to a minimum. I’m not an agent, just a fellow investor. Let me know if you have a specific buy box and buy criteria.

    I will reach out soon! Would love to learn more from you. Thanks for reaching out!
    0Reply
  • D’Andre Ortiz
    Real Estate Agent · Columbus, OH · Member since 2020 · 44 posts · 36 votes
    3y

    Welcome Mitch! This is a great community to be apart of to further your real estate journey along. Please let me know if you have any questions. I would be happy to assist! 

    0Reply
  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    3y

    Couple thoughts:

    1) Buy a 2-4 family, live in one unit, rent the rest for cashflow, but more importantly - experience!

    2) Keep in mind at least 95% of agents are CLUELESS when it comes to working with investors. Most only deal with owner-occupied properties. Ask how many rentals they own before dealing with them.

    3) Learn the differences between investing in Class A, B, C & D rentals. See below:

    In our OPINION (always verify yourself!):

    Class A Properties:
    Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.
    Vacancy Est: Historically 10%, 5% the more recent norm.
    Tenants: Majority will have FICO scores of 680+.

    Class B Properties:
    Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.
    Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.
    Tenants: Majority will have FICO scores of 620+, some blemishes, but should have no evictions in last 5 years

    Class C Properties:
    Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation. Can try to reposition to Class B, but neighborhood may impede these efforts.
    Vacancy Est: Historically 10%, but 15-20% should often be used to also cover nonpayment & evictions.
    Tenants: majority will have FICO scores of 560-600, many blemishes, but should have no evictions in last 2 years. Verifying previous 2-years of rental history very important!

    Class D Properties:
    Cashflow vs Appreciation: Typically, all cashflow with zero or negative relative rent & value appreciation
    Vacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.
    Tenants: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions.

    Make sure you understand the Class of properties you are looking at and the corresponding results to expect.

    Logical Property Management4.9459 Reviews
    WebsiteView Page
    2Reply
  • Mitchell Bumgardner
    OP
    Member since 2023 · 10 posts · 3 votes
    3y
    Quote from @Michael Smythe:

    Couple thoughts:

    1) Buy a 2-4 family, live in one unit, rent the rest for cashflow, but more importantly - experience!

    2) Keep in mind at least 95% of agents are CLUELESS when it comes to working with investors. Most only deal with owner-occupied properties. Ask how many rentals they own before dealing with them.

    3) Learn the differences between investing in Class A, B, C & D rentals. See below:

    In our OPINION (always verify yourself!):

    Class A Properties:
    Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.
    Vacancy Est: Historically 10%, 5% the more recent norm.
    Tenants: Majority will have FICO scores of 680+.

    Class B Properties:
    Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.
    Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.
    Tenants: Majority will have FICO scores of 620+, some blemishes, but should have no evictions in last 5 years

    Class C Properties:
    Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation. Can try to reposition to Class B, but neighborhood may impede these efforts.
    Vacancy Est: Historically 10%, but 15-20% should often be used to also cover nonpayment & evictions.
    Tenants: majority will have FICO scores of 560-600, many blemishes, but should have no evictions in last 2 years. Verifying previous 2-years of rental history very important!

    Class D Properties:
    Cashflow vs Appreciation: Typically, all cashflow with zero or negative relative rent & value appreciation
    Vacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.
    Tenants: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions.

    Make sure you understand the Class of properties you are looking at and the corresponding results to expect.

    Hey Michael! This is great information. Thank you for breaking it down the way you did as well. I really appreciate that.

    Can I direct message you about a more specific question I have on multifamily investing?

    Thanks again for your response!
    0Reply
  • Kyle Zdrojewski
    Homeowner · Member since 2019 · 36 posts · 12 votes
    3y

    @Mitchell Bumgardner

    First and foremost, welcome to the area and thank you for service in the USAF. I think your off to a great start by connecting with likeminded people here on Biggerpockets. There are a lot of resources available to you as you begin your journey in investing on this platform including Agents (I will be listed as an agent on the platform effective 8/28), other investors and contractors. 

    I am also a new investor and have been going down a similar path learning as much as I can and working to build relationships. Below are a few resources in the KC Metro that you might be interested in. The one thing I would say about some of these groups is that you will find a lot of local wholesalers selling properties and to really look at the financials as many may not meet your cashflows strategy. I think wholesalers can provide a ton of value in a transaction, but the numbers I have seen lately tend to lean more towards long term investment growth and appreciation.

    Facebook - Bridge Real Estate group click Here to request access. 

    Facebook - Connectwise investors group KC Click HERE to request access

    Facebook - a couple of off market properties groups on Facebook HERE and HERE

    One NON-Facebook group that I have recently looked at MAREI

    If there is anything I can do to help as a fellow new investor or as a real estate agent, please don't hesitate to reach out. 

    I would love to connect and grab a cup of coffee or lunch some weekend when you have time.

    0Reply
  • Mitchell Bumgardner
    OP
    Member since 2023 · 10 posts · 3 votes
    3y
    Quote from @Kyle Zdrojewski:

    @Mitchell Bumgardner

    First and foremost, welcome to the area and thank you for service in the USAF. I think your off to a great start by connecting with likeminded people here on Biggerpockets. There are a lot of resources available to you as you begin your journey in investing on this platform including Agents (I will be listed as an agent on the platform effective 8/28), other investors and contractors. 

    I am also a new investor and have been going down a similar path learning as much as I can and working to build relationships. Below are a few resources in the KC Metro that you might be interested in. The one thing I would say about some of these groups is that you will find a lot of local wholesalers selling properties and to really look at the financials as many may not meet your cashflows strategy. I think wholesalers can provide a ton of value in a transaction, but the numbers I have seen lately tend to lean more towards long term investment growth and appreciation.

    Facebook - Bridge Real Estate group click Here to request access. 

    Facebook - Connectwise investors group KC Click HERE to request access

    Facebook - a couple of off market properties groups on Facebook HERE and HERE

    One NON-Facebook group that I have recently looked at MAREI

    If there is anything I can do to help as a fellow new investor or as a real estate agent, please don't hesitate to reach out. 

    I would love to connect and grab a cup of coffee or lunch some weekend when you have time.


     Thank you for all that information. I will be sure to join the groups and reach out if I have any questions. And I agree. Cash flow seems to be a more difficult strategy compared to the past so, I will need to adapt to the market and strategize accordingly. Thanks again for reaching out!

    0Reply
  • Lee RipmaPro Member
    Rental Property Investor · Prairie Village, KS · Member since 2015 · 2k+ posts · 2k+ votes
    3y

    @Mitchell Bumgardner

    Warrensburg is a great little market for small MF, we often have both on and off market MF there. Several other options within 60 miles of Whitman AFB. Happy to put you on our active buyers list. 

    Awesome work getting going, you’ll be amazed at what you can achieve in just a few years. 

    Podcast Guest on Show #373
    0Reply
  • Hunter Adkison
    Real Estate Agent · Blue Springs MO · Member since 2023 · 2 posts · 0 votes
    3y

    Hey Mitchell! I am licensed in KC MO area, always keeping an eye out for those cash flowing deals. 

    My Broker is retiring from a career in the Air Force, and has years of Real Estate Experience, as well. I would love to connect Yall! Feel free to reach out any time. 

    Thanks buddy!

    0Reply
  • Mitchell Bumgardner
    OP
    Member since 2023 · 10 posts · 3 votes
    3y
    Quote from @Lee Ripma:

    @Mitchell Bumgardner

    Warrensburg is a great little market for small MF, we often have both on and off market MF there. Several other options within 60 miles of Whitman AFB. Happy to put you on our active buyers list. 

    Awesome work getting going, you’ll be amazed at what you can achieve in just a few years. 

    Thanks for the inspiration! I love it! And yes I would be happy to be on your buyer list. Thank you!
    0Reply
  • Mitchell Bumgardner
    OP
    Member since 2023 · 10 posts · 3 votes
    3y
    Quote from @Hunter Adkison:

    Hey Mitchell! I am licensed in KC MO area, always keeping an eye out for those cash flowing deals. 

    My Broker is retiring from a career in the Air Force, and has years of Real Estate Experience, as well. I would love to connect Yall! Feel free to reach out any time. 

    Thanks buddy!

    Yes! That would be incredible! I look forward to hearing from him. Thank you so much!
    0Reply
  • Kim Tucker
    Flipper/Rehabber · Kansas City, MO · Member since 2011 · 2k+ posts · 712 votes
    3y
    Quote from @Kyle Zdrojewski:

    @Mitchell Bumgardner

    First and foremost, welcome to the area and thank you for service in the USAF. I think your off to a great start by connecting with likeminded people here on Biggerpockets. There are a lot of resources available to you as you begin your journey in investing on this platform including Agents (I will be listed as an agent on the platform effective 8/28), other investors and contractors. 

    I am also a new investor and have been going down a similar path learning as much as I can and working to build relationships. Below are a few resources in the KC Metro that you might be interested in. The one thing I would say about some of these groups is that you will find a lot of local wholesalers selling properties and to really look at the financials as many may not meet your cashflows strategy. I think wholesalers can provide a ton of value in a transaction, but the numbers I have seen lately tend to lean more towards long term investment growth and appreciation.

    Facebook - Bridge Real Estate group click Here to request access. 

    Facebook - Connectwise investors group KC Click HERE to request access

    Facebook - a couple of off market properties groups on Facebook HERE and HERE

    One NON-Facebook group that I have recently looked at MAREI

    If there is anything I can do to help as a fellow new investor or as a real estate agent, please don't hesitate to reach out. 

    I would love to connect and grab a cup of coffee or lunch some weekend when you have time.

    1Reply
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