Out of State purchase
I live in Chicago, but I'm considering purchasing my first investment home in Kansas City for price purposes (obviously generally much cheaper in KC). Does anyone have suggestions or any advice about doing this (i.e., "don't do it as a first purchase")? I'd like to have a place near me ideally, but multi-unit buildings in decent neighborhoods aren't all that cheap, so I'm looking in other cities like my hometown.
Hi jack
Lol hijack. I'm an investor in Kc. Welcome to BP. If I can help you out in anyway let me know.
@Jack Taylor Are you looking to invest in SFR or MF? If SFR, why not look closer to your own backyard. Cross over into Indiana and you can find some good deals with a more landlord friendly environment. No need to go to KC.
I'm looking into multi-family, 2-4 units if possible. Although single-family "down the street" does seem like a good option, eh?
If you do decide to do single family in KC I would like the opportunity to provide you with more information. I work for a turnkey company that specializes in providing outside investors with rental properties. DM me if you would like more info.
I'd second what @Larry Fried says and investigate NWI. It's a solid rental market and similar returns that your get in Kansas City. But it's only an hour from you at most and will be a heck of a lot easier to control should something go wrong. Unless you want to drive to KC 2-3 times a year to check on your property.
-
Real Estate Agent IN (#RB17000988)
- Prestige Management
@Jack Taylor I'm in the same position as you. Chicago doesn't seem to be the best option for starting out/cash flow in general. NWI sounds like a good idea, @Adrien S.! I hadn't thought about that. Better start looking at that area too. Jack, if you're interested in getting together sometime as newbie REIs for coffee or something, DM me. I'd love to start meeting people with similar goals!
@Jack Taylor @Alex Buscaglia Indiana is definitely very landlord friendly..
Indianapolis is only 3 hours away and we have a lot of multifams available.. Good profit available on those as well.. I work with a lot of domestic and international investors buying here in Indy... We can handle helping you buy, rehab, manage, and sell.. So any part of the puzzle.
When dealing with multifams, you need to be aware of a couple of different things though.
- Higher vacancy rates, instead of 2-4 weeks to fill a single fam, you are looking at 4-8 weeks to fill a multifam.
- Higher turnover rates.. While my single fam renters generally rent for 3-4 years on average, my multifams only rent for 1 year on average.
- Watch out for owner paid utilities. These can break the deal. While water/sewer is easy to deal with, anytime you are paying for heat you are looking for trouble. Residents crank the heat up in the winter and then open a window to cool off...
I am not trying to scare you off, just you need to budget for them.
I have some friends who are doing some really good deals in South Chicago suburbs, but they work in single fams.
@Lee Smith great info, thanks! Makes sense about the owner paid utilities. I know I've done that with the heat, but because I've never had a landlord pay for that, I was the only one who got burned (no pun intended...well maybe).
Thanks again for the information. I look forward to possibly connecting with you in the future!
@Larry Fried @Lee Smith @Alex Buscaglia @Todd Crippen. Thanks to all of you! I'm going to talk to some friends from just across the border of Indiana/Illinois and see if they can suggest some neighborhoods to start my search and see what I can come up with. I really appreciate it!
Hi @Jack Taylor we provide exceptional properties and in house management for turn key clients all over the country and internationally (Bridge Management) ... love the opportunity to share with you what we do, and why we have some many repeat clients. Thanks!
