New member from greater Kansas city area

29 Replies

Hello everyone. I am Skyler Taylor from Overland Park KS a suburb of the Kansas city area. I stumbled on bigger pockets back in February of 2014 when I was looking into how to do a 1031 exchange. I have been following the site since then. I love the podcasts and have benefited from the book recommendations and information on tenant screening.

I'm a small time investor. I made my first purchase back in 2009 when I bought a condo in Miami Beach at the height of the housing crash. I later purchased another condo in 2012 in the gas lamp district of downtown San Diego. After reading the BP site and other RealEstate books. I started focusing my efforts more on growth and using metrics (ROI, cap rates, etc) instead of just cash flow. Once I was focused I realized the market right in my back yard had better ROI and CAP then all the other areas I was looking to purchase in. Armed with the new insight and direction I then purchased a half duplex using the home path 10% down investor loan program.

Here recently I sold my condo in San Diego and used the proceeds to buy a fairly turnkey single family and a full duplex that required a lot of updating. I also obtained my KS Real Estate Licence during the process. All of this all happened over the summer of 2015.

After listening to the BP podcast with Grant Cardone (6 times) I have been obsessed with increasing revenue. I love his idea of not focusing on saving/penny pinching but putting all your efforts to growth. No one ever got rich by clipping coupons. So now I'm in the process of learning everything I can about multifamily commercial RealEstate. 

I have partnered with some friends and we are in the process of forming an LLC so that we can purchase a 10 to 15 unit multifamily in the greater Kansas city area late spring of 2016. I have a long way to go and a lot to learn but at the minimum I felt like it was time to network and contribute on the BP site.

@Skyler Taylor

Welcome to Bigger Pockets. BP is full of resources. You will find resources here from blogs to pod casts and forums. You can also send messages to members. This is one of my favorite features of Bigger Pockets especially for asking specific questions.

Welcome to BP officially! There's so much knowledge at your finger tips! Be sure to get to MAREI. It's a gathering of local REI's and their supporting cast. Feel free to reach out if I can help in any way.

Originally posted by @Bob Bowling:

OMG!  What have you read to make you think Overland Park KS has a better Cap than San Diego?

 It was a pretty easy for me personally. I purchased a 500 sq ft condo in San Diego for 209k and it was renting for $1450 per month. I recently purchased a full duplex for 212k and it rents for $1450 a month. Rents are high in Southern California and and property values are even higher. I can make more money back home on less debt so I took my 50k in appreciation and bounced. 

Originally posted by @Skyler Taylor:
Originally posted by @Bob Bowling:

OMG!  What have you read to make you think Overland Park KS has a better Cap than San Diego?

 It was a pretty easy for me personally. I purchased a 500 sq ft condo in San Diego for 209k and it was renting for $1450 per month. I recently purchased a full duplex for 212k and it rents for $1450 a month. Rents are high in Southern California and and property values are even higher. I can make more money back home on less debt so I took my 50k in appreciation and bounced. 

 Clarification $1450 per side roughly 3k per month :)

Originally posted by @Brandon Holley :

Welcome to BP officially! There's so much knowledge at your finger tips! Be sure to get to MAREI. It's a gathering of local REI's and their supporting cast. Feel free to reach out if I can help in any way.

Thanks for he welcome I will definatly reach out to you

Originally posted by @Bob Bowling:
Originally posted by @Skyler Taylor:
Originally posted by @Bob Bowling:

OMG!  What have you read to make you think Overland Park KS has a better Cap , than San Diego?

 It was a pretty easy for me personally. I purchased a 500 sq ft condo in San Diego for 209k and it was renting for $1450 per month. I recently purchased a full duplex for 212k and it rents for $1450 a month. Rents are high in Southern California and and property values are even higher. I can make more money back home on less debt so I took my 50k in appreciation and bounced. 

OK, you avoided my question.  I was trying to give you a little education.  The answer is there is no such thing as better cap rates so your statement made you look ignorant. 

OK, now you have a property that probably has more than twice the operating expenses as the SD property.  Double tenants, toilets and trash.  Uck.

Plus you pissed away the close to $600 a yea, and growing, property tax subsidy under Prop 13..

But worse of all things is you KILLED the goose that lays the GOLDEN eggs.

How many time have I heard a novice CA landlord complain about not making any rent income so they take their $50,000-$100,000 years worth of appreciation to trade it for a few hundred a month cash flow.  Yep, can't make any money in CA

Woah take it easy buddy. I've been on here for less than an hour and I am already being called ignorant. You are looking for a fight where there is none to be had. In my introduction I said "Once I was focused I realized the market right in my back yard had better ROI and CAP THEN ALL THE OTHER AREAS I WAS LOOKING TO PURCHASE IN" Those areas not being California Bob. California was too expensive for me to purchase n 2014. As you know prices increased by over 30% from 2012 to 2014.

In the context your speaking yes the CAP rate is based on the individual market. However, I do believe my broker said that Southern California's specifically San Diego cap rates are low 4-6. However I could be incorrect I don't claim to know everything or much at all :)

I respect your right to defend SOCAL. Like I said personally multifamily works for me. I decreased my monthly revolving payments (skyrocketing HOAS @ 380 and climbing) while increasing my ROI and consequently cash flow. My 1500 per month in cash flow will well make up for any government subsidy you are talking about and tax sheltering is not why I invest in real estate.

Most people that I have encountered that are not into real estate investment worry about toilets and trash etc. that's one of the reasons why they claim they don't get into it. I  have a property manager and I also put premium materials so that I may charge a premium rent and attract a better tenant.

But Thanks for your Post

Hey @Bob Bowling - if your intention is to educate, perhaps a kinder tone might be more effective.  Attacking people, especially newbies, certainly would not encourage them to come back for more "education."  

Originally posted by @Emily Powell :

Hey @Bob Bowling - if your intention is to educate, perhaps a kinder tone might be more effective.  Attacking people, especially newbies, certainly would not encourage them to come back for more "education."  

Geez, now I gotta teach the ignorant what ignorant means  ;-)

http://www.merriam-webster.com/dictionary/ignorant

Attack?  Where Emily?

Everybody that needs a Participation Trophy for their self esteem please raise your hands.

@Bob Bowling I respect your experience and viewpoints. But there is no reason for your negative post. This is the first negative post I've actually encountered, it's a little embarrassing . Please try and refrain from calling a new members ignorant if you would. 

@Skyler Taylor  In a recent podcast the point was recently driven home "The riches are in the niches" so congratulations for finding and taking action where you see fit! 

@Skyler Taylor

Welcome to BP.  I can completely relate to your situation.  I too had some nicely appreciated San Diego properties that I sold and exchanged into cash flow properties in Memphis.  I fully realize that the new properties are not going to provide me with much appreciation, but I don't really care, so long as they produce cash flow.

Not that you need any additional validation of your decision to relocate your investments, but here are a couple of points.  While the property tax "subsidy" of prop 13 (not really a subsidy as it only means the government takes a little less of your money...) is nice, you also have to take into consideration that the PRC  (Peoples Republic of California) is one of the most landlord hostile states.  It takes months to get rid of a non-paying tenant, you're often better off bribing the deadbeats to give you back the apartment.  In Memphis, it takes 3 weeks and you only pay $200 or so for the court and attorneys fees.

Another PRC quirk is that the Sargent Shriver act takes a few millions of taxpayer money and gives it to Legal Aid, for the specific purpose of harassing and blackmailing landlords in any case where the tenant shows up in court without a lawyer.

Since cap rates in San Diego are just about even with the interest rates, I figured that we must be close to another market peak.  

Since you got "jumped" for your decision to relocate your capital, I thought I would chime in to let you know that there are those of us on this site who have read the markets, arrived at the same conclusions and taken similar actions.  You're in good company.  Please don't hesitate to float any comments, questions or concerns you might have, this is a great forum.

Erik

Originally posted by @Brandon Holley :

@Bob Bowling I respect your experience and viewpoints. But there is no reason for your negative post. This is the first negative post I've actually encountered, it's a little embarrassing . Please try and refrain from calling a new members ignorant if you would. 

@Skyler Taylor  In a recent podcast the point was recently driven home "The riches are in the niches" so congratulations for finding and taking action where you see fit! 

Hey I appreciate the education from Bob. I am just from some hole in the wall with corn fields and 1 stop light ;) Hey Brandon you want to meet up and go line dance this weekend in Olathe

Originally posted by @Erik Nowacki :

@Skyler Taylor

Welcome to BP.  I can completely relate to your situation.  I too had some nicely appreciated San Diego properties that I sold and exchanged into cash flow properties in Memphis.  I fully realize that the new properties are not going to provide me with much appreciation, but I don't really care, so long as they produce cash flow.

Not that you need any additional validation of your decision to relocate your investments, but here are a couple of points.  While the property tax "subsidy" of prop 13 (not really a subsidy as it only means the government takes a little less of your money...) is nice, you also have to take into consideration that the PRC  (Peoples Republic of California) is one of the most landlord hostile states.  It takes months to get rid of a non-paying tenant, you're often better off bribing the deadbeats to give you back the apartment.  In Memphis, it takes 3 weeks and you only pay $200 or so for the court and attorneys fees.

Another PRC quirk is that the Sargent Shriver act takes a few millions of taxpayer money and gives it to Legal Aid, for the specific purpose of harassing and blackmailing landlords in any case where the tenant shows up in court without a lawyer.

Since cap rates in San Diego are just about even with the interest rates, I figured that we must be close to another market peak.  

Since you got "jumped" for your decision to relocate your capital, I thought I would chime in to let you know that there are those of us on this site who have read the markets, arrived at the same conclusions and taken similar actions.  You're in good company.  Please don't hesitate to float any comments, questions or concerns you might have, this is a great forum.

Erik

 Thanks for your thoughtful reply. I do believe the caprates are low in that market. I made a few mistakes when acquiring the property. The main one was structuring in a 15 yr note. I had a 3.00% interest rate but I would not gain the benefit of the continued devaluation of the currency and inflation along with it killing my cash flow but knocking out my principal.

Again this was part of the learning process and BP along with other real estate investment books helped me understand this. Additionally when I purchased the property I had an HOA holiday for the first 2 years. Once that came due I was negatively cash flowing. I started off doing real estate using a semi bastardized version of Dave Ramsey. I know I know he says pay cash for investment properties but that just wasn't plausible to wait 3 more years to buy a property that's still on the down swing.

After reading the book everyone cites rich dad poor dad ii had a different perspective on how to make debt work for you. BTW just came from Nashville watched my favorite NFL team Titans play. Nashville is great and the downtown reminds me of San Diego when they started building like crazy downtown.

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