Finding a Market and Finding a Property Manager

10 Replies

Hi Everyone!  I am a recent graduate and have never purchased a piece of real estate.  Unfortunately, I live in a housing market that is more expensive than I can afford.  Because of this, I am thinking of purchasing a rental property in another state.  Couple questions:

1) My first choice right now is to purchase a rental property (ideally a duplex/triplex) in Kansas city because the rental property is hot and the property taxes are low.  Do you guys think this would be a good market to purchase in?

2) How do you go about hiring people to manage and rehab the property without actually living in the area?

Greatly appreciate all you wonderful peoples' feedback!

@Kyle Burkhardt I am looking in the Kansas City market currently. I do not know about rehabbing remotely, but I would possibly talk to @Nathan Brooks . He sells turnkey rental properties in the area and also has a property management company. I believe this is the link to his website https://www.bridgeturnkey.com/

I live here so I can't speak of remotely rehabbing anything in KC but @Lee Ripma has recently gone down that path. Maybe she can advise?

@Kyle Burkhardt

1) Kansas City is a big area so it's all about finding your sub-market. In my opinion, this takes a lot of research and time in KC. 

2) You need people you trust, which in my opinion you get by building relationships in the market you want to invest in. You have to devote a lot of time to build these relationships and there will be trial and error. 

What is your goal in buying real estate either in LA or elsewhere? Have you considered a lower-priced market that you could drive to?

@Michael Minor thanks for tagging me brother. @Kyle Burkhardt we could definitely help you ... tag me back here or send a PM and love to see if we can help in anyway!

@Kyle Burkhardt - I am here but I completely agree with @Lee Ripma more.  

Do you have an ROI you want? What area do you want and why? Do you know anyone here? Are you familiar with KC? What is your long-term strategy for investing and how does acquiring a property in KC help that strategy?

Finally, always check the numbers. Never rely on someone else to tell you it is a good deal, a good area, etc...

Best of luck to you. 

Originally posted by @Kyle Burkhardt :

Hi Everyone!  I am a recent graduate and have never purchased a piece of real estate.  Unfortunately, I live in a housing market that is more expensive than I can afford.  Because of this, I am thinking of purchasing a rental property in another state.  Couple questions:

1) My first choice right now is to purchase a rental property (ideally a duplex/triplex) in Kansas city because the rental property is hot and the property taxes are low.  Do you guys think this would be a good market to purchase in?

2) How do you go about hiring people to manage and rehab the property without actually living in the area?

Greatly appreciate all you wonderful peoples' feedback!

 Welcome aboard Kyle.

Many people buy out of state rental property. Many of those people are here on BP.

Some important things to do when buying out of state

1. Hire a 3rd party home inspector.

2. Use a bank loan. OPM is the best part of the biz. On top of stretching your cash the bank will perform an appraisal. Bank isn't going to let you loose their money.

3. Hire a Realtor to represent you in the sale.

4. Make sure your Property Manager is a state licensed Brokerage.

5. Accept that you can not eliminate all risk. You can only limit it by doing things like the above 4 tips.

Good luck & happy investing.

Not sure this is helpful, and it's an older article (but still applicable), but just some basic info on out-of-state investing-

https://www.biggerpockets.com/renewsblog/2012/12/22/out-of-state-real-estate-investing/

I do think KC is a great market right now, but the other posters are right- it's all about your team in place. 

Where in LA do you live? I'm in Venice and also invest out-of-state.

@Kyle Burkhardt I do agree that KC is still a good market to invest in, but it does get down to the area, the deal, and most particularly the team you work with (either putting it together yourself) or ready made as an all in one turnkey outfit.  I think getting reliable property management is particularly challenging in KCMO.

@Kyle Burkhardt There is many providers in Kansas city with great information. I have provided rehabs for 6 of the major turnkey providers in Kansas city. PM if I can help you in any way. You can trust but verify any information you recieve!

@Kyle Burkhardt , I’m here in KC and to echo many of the other thoughts, KC is a large market and you’ve got to pick a good submarket. The advise of using a 3rd party inspector and a local bank are spot on. We’ve been investing in the eastern suburbs for quite some time. I’m happy to talk more or share contacts if you’d like. 

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