Hey Guys,
Looking to invest in Wichita, KS. But according to census that town has been declining in population last couple of years. Also I believe job growth hasn't been at the rate of KC & OKC. But I heard Amazon is building a warehouse in ICT. I understand it is a good cash flow market but hopefully someone who is actively in that market who can shed some light. Also please let me know if I can help out in any way and I will jump in. My expertise is in deal analysis, Buy & Hold strategy & personal finance. Thanks in advance guys!
Hey @Toby Khan I'm actively buying in Wichita and the surrounding areas. With the instability of the current economic situation I see a lot of opportunity. There are actually two Amazon facilities going in. A fulfillment center and a distribution center, both will be a boon for the market.
@James Milne I'd love to talk to you and learn more about the process, and get some insights. I'm not looking to go into flipping, maybe help fund a few for the lessons. I'm looking more how can I grow my rental portfolio faster.
Sure thing, happy to connect and talk.
@John Ringgold That's great! I've been looking for new houses to put some cash to work, but MLS is over-priced...even for Topeka.
I meant the zip code 66614. I saw it on a website a while back and I was pretty impressed with it. Not sure if it had something more to do with pandemic response to move to lower priced areas or what the motivation was.
Let's connect.
@James Milne I have seen some properties come on CREXI.com for Wichita. Any insights into the 5 condos for sale on S Gold St? I've been told that Haysville is popular for the Meth.
Also, there are two duplexes for sale in Park City. Any insights into rent demand for this smaller city and viability there?
These two are most likely on the opposite end of the spectrum and rent to different clientele, but from a property manager standpoint, how do these two properties fare and how much work do you think would be in managing the 5 condos?
yea the METH is really bad in Haysville
@James Milne I have seen some properties come on CREXI.com for Wichita. Any insights into the 5 condos for sale on S Gold St? I've been told that Haysville is popular for the Meth.
Also, there are two duplexes for sale in Park City. Any insights into rent demand for this smaller city and viability there?
These two are most likely on the opposite end of the spectrum and rent to different clientele, but from a property manager standpoint, how do these two properties fare and how much work do you think would be in managing the 5 condos?
Good morning. Apologies for the tardy reply. Wichita is a small city, and doesn't have the rampant crime of a Detroit, Chicago, or St. Louis. Haysville is a lower-end suburb that has mediocre schools and slightly higher than average crime and narcotics rates in the city. That being said, part of our business plan and vision is to help gentrify lower end neighborhoods, so I have lots of property in much worse places in town than Haysville. Good property management, and more specifically good ownership is key. Sometimes doing the right thing is more important than a few dollars.
I've analyzed the properties on Gold several times as they've been on the market for a while. I've never gone down to actually see them, but they are on the cusp of my financial targets. My largest concern based on the marketing package is the value add I can bring to the property, and the HOA fee's which aren't apparent in the marketing. In my opinion if you could get the 10-pack in the 600-615 range (assuming due diligence irons out), then they could hit that 10% CoC as-is. The current asking price has been dropped recently, it's around 695k right now, so that's a bit of a drop. I'm in the processes of picking up a 20-pack of studio's around the same threshold. Let me know if you need an introduction to Jeff Englert or Nathan Farha (the selling brokers). Good guys. Someone will bite on this one soon.
Also Park City is hot right now, Amazon is building a facility there.
I dove in a little deeper on those Gold properties. The HOA basically kills it. 180/mo/unit, so you are looking at $21,600/year. According to their pro-forma statements and current rents, that's about a 1% CoC. Pass.
Hey everyone,
I've got a quick neighborhood question. Archie Adams Subdivision near Southeast BLVD and E. Pawnee St. I've got a possible off market deal. Rentometer is saying rents are around $650. I'm wondering how rough of a neighborhood this is. We talking rough area or working class? Any help or insight is appreciated.
Also happy new year everyone!
"Haysville is a lower-end suburb that has mediocre schools and slightly higher than average crime and narcotics rates in the city."
@James Milne, Where are you getting your data on Crime & Schools? It would be very helpful to have that information.
Thanks, Greg Guiltner
@Brett Danehey, I would say that area is questionable, but I definitely lean toward the safer, more conservative side. It's not what I would call a super rough, probably different street by street, and would most likely depend on the neighbors right around the property. I have family that lives in that area, and doesn't think anything of it, but not somewhere I would want to live with my family. I would also add that most of the small multifamily I see in that area appear to be on the rougher side. All that said, you are probably going to get better returns than I get in my safe/conservative areas. That's all pretty subjective, but hopefully helps a little.
All,
I feel 200x more educated after reading this thread! My wife and I are new to Wichita and are looking to buy a house here soon. We are just starting our REI journey and this has been a huge help! As anyone had success in buying duplexes, living in one side and renting the other? A buddy said there are new duplexes going up just East of the McConnell Air Force Base. Has anyone looked into those?
Thanks for the great info!
Welcome to Wichita Colten! Since you are new to town be sure you are aware of special taxes, i.e specials. They are somewhat unique to Wichita & may throw off your numbers for those new duplexes. Let me know if you want more information.
Welcome to Wichita Colten! Since you are new to town be sure you are aware of special taxes, i.e specials. They are somewhat unique to Wichita & may throw off your numbers for those new duplexes. Let me know if you want more information.
Hi Kelly. What taxes are you referring to?
Residential developers in Wichita pass the cost of the neighborhood utilities (sewers, streets etc..) onto the buyer. Each lot is assessed with the taxes to cover such cost and they are paid monthly for the first 15 (give or take) years as part of your mortgage payment. These special taxes, as they are called, are collected the same way as general taxes (December & May) but are listed out separately. If you go to Sedgwick County and search property taxes you can always find this information (https://ssc.sedgwickcounty.org...). These special taxes could potentially add $150 -$250 to your monthly mortgage payment.
Fellow investor!! Thank you so much for sharing your thoughts, experience, expectations and thorough knowledge about locations. This thread has been great. We definitely have a great group of investors in Wichita area.
Residential developers in Wichita pass the cost of the neighborhood utilities (sewers, streets etc..) onto the buyer. Each lot is assessed with the taxes to cover such cost and they are paid monthly for the first 15 (give or take) years as part of your mortgage payment. These special taxes, as they are called, are collected the same way as general taxes (December & May) but are listed out separately. If you go to Sedgwick County and search property taxes you can always find this information (https://ssc.sedgwickcounty.org...). These special taxes could potentially add $150 -$250 to your monthly mortgage payment.
Wow. Thank you Kelly for that insight.
Hello everyone,
I was going through my daily research and breakdown and started to think that it would be good to have a meet up some time this year. It sounds like many of us are from outside the area. Wanted to gauge interest in having a weekend some time this summer where we all congregate in Wichita to talk shop and get to know each other and possibly do some work.
And a reminder of our appraisal and rental documents for acquisition that everyone should have access to fill in and view when doing your research.
Brett
@Brett Danehey I think that is a great idea!
https://drive.google.com/drive...
here's the link to the appraisals and rents that we started to put together everyone should have access to contribute
@Dan Bass I've looked at Topeka before I chose Wichita. I went to school at Washburn and my thoughts and numbers are pretty thin in Topeka. Not that there isn't some opportunity, but investing from afar, I don't really have the chance to get a crew that can do the rehab on the homes that I think would turn a profit.
Speaking of questions on property. Has anyone else looked at the duplexes on Meadow Creek cir. in Wichita. There's a number of them that are selling 3 bed and 2 bed. And seem to be moderately priced. What am I missing here, feel like those are a good deal. Any insight would be great!!
Hello everyone,
I was going through my daily research and breakdown and started to think that it would be good to have a meet up some time this year. It sounds like many of us are from outside the area. Wanted to gauge interest in having a weekend some time this summer where we all congregate in Wichita to talk shop and get to know each other and possibly do some work.
And a reminder of our appraisal and rental documents for acquisition that everyone should have access to fill in and view when doing your research.
Brett
@Brett-I am open to this idea. I am in Wichita every few months & would love to connect with investors who are in the area or from out of state.
@Dan Bass I've looked at Topeka before I chose Wichita. I went to school at Washburn and my thoughts and numbers are pretty thin in Topeka. Not that there isn't some opportunity, but investing from afar, I don't really have the chance to get a crew that can do the rehab on the homes that I think would turn a profit.
Speaking of questions on property. Has anyone else looked at the duplexes on Meadow Creek cir. in Wichita. There's a number of them that are selling 3 bed and 2 bed. And seem to be moderately priced. What am I missing here, feel like those are a good deal. Any insight would be great!!
That's not exactly an up and coming area -- I'd research who built them - can likely find that by going to the SG County Recorded Docs site or by seeing who pulled the permits during const -- Wichita has been on a duplex building boom -- look at the tax value -- They probably have that or less in it on the build - I also doubt they were built to be quality long term -- things such as the trim/cabinets etc -- they all look like the cheapest stuff a guy could buy - if the cabinets aren't oak and there is MDF or pine trim and pre-hung doors with engineered wood jams I'd run.
2-3 yrs ago for $180k -205 or so you could buy duplexes in Maize, Kechi, Valley center all day to builders that were selling them off to investors - not worth that in that area.
It has been a 357 days since I purchased my first property. I paid cash and roughly 25% of retail value. The plan was to pay cash, refi out and use that to improve the property. I ran into a few issues with lenders. The banks/credit unions said I needed 6 to 12 months of ownership to get refied. Has anyone else had this issue? The reasoning from 2 was COVID and another said they changed the laws response to 2008. I didn't understand why I could not get my money out of a free and clear asset. I obviously had not educated myself well before diving in. Are there any lenders you would recommend so this doesn't happen on future deals?
I forged ahead, moved into the house and used credit cards to partially improve the property before they maxed out. The 6 months was up on 1/1/2021. I found a lender and started the refi process. Finally on 5/14/2021 (day 348) the refi was closed and funded. I am back to getting the house rehabbed. Living in the house has definitely slowed progress. It will be finished within 45 days. Question is: Do I sell or Do I continue to live in it?
The Wichita market currently does not have enough supply to meet the buyers need. Buyers are offering up to 20% over ask. Selling sounds great on the surface, but then I would be entering that market looking for a "Deal". The payment on the refi would be about 40% of renting a place while looking for the next property.
Thanks for listening. Any feedback or advice would be welcome. I am also open to meeting up with anyone in the Wichita market.
It has been a 357 days since I purchased my first property. I paid cash and roughly 25% of retail value. The plan was to pay cash, refi out and use that to improve the property. I ran into a few issues with lenders. The banks/credit unions said I needed 6 to 12 months of ownership to get refied. Has anyone else had this issue? The reasoning from 2 was COVID and another said they changed the laws response to 2008. I didn't understand why I could not get my money out of a free and clear asset. I obviously had not educated myself well before diving in. Are there any lenders you would recommend so this doesn't happen on future deals?
I forged ahead, moved into the house and used credit cards to partially improve the property before they maxed out. The 6 months was up on 1/1/2021. I found a lender and started the refi process. Finally on 5/14/2021 (day 348) the refi was closed and funded. I am back to getting the house rehabbed. Living in the house has definitely slowed progress. It will be finished within 45 days. Question is: Do I sell or Do I continue to live in it?
The Wichita market currently does not have enough supply to meet the buyers need. Buyers are offering up to 20% over ask. Selling sounds great on the surface, but then I would be entering that market looking for a "Deal". The payment on the refi would be about 40% of renting a place while looking for the next property.
Thanks for listening. Any feedback or advice would be welcome. I am also open to meeting up with anyone in the Wichita market.
So it sounds like me you built additional equity into the home your living in now. Have you looked into getting a HELOC on the home now that you have a lot more equity in it? You do that then you could have a lot of cash available to finance your next purchase and perhaps renovation costs as well. Then you could choose if you want to move into that next house and sell your current home with some tax benefits. Or you could keep it as a rental and eventually refi the second property. If you get enough experience doing exactly what you did with your first property there are lenders that would no require your purchase to "season". Perhaps you could even get your new property rented out at a rate that would pay your heloc bill, at interest-only payments that should be fairly easy. Then you have a whole new house with additional equity you created perhaps then you can get a heloc on that home if you cannot refinance it.
Talk to lenders about your plan before so you can make sure it will work with you. The strength of what you have done so far is you are building equity. The problem with selling is a lot of that equity will be lost when you sell it either through taxes or payments to your listing agent.
If you ever have the ability to limit these types of fees and still be able to use your equity to fund additional purchases I think you should. That method will increase your ROE significantly more.
Also read the BP book on BRRRR investing. You did your first purchase a bit out of order to get those most out of your purchase. But it sounds it worked out well for your equity position. Keep up the good work. Start to get those on homes with renters in them. Would you be able to get roommates in your current place so you could get some cashflow from the home you are living in?