New member from greater Kansas city area

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New member from greater Kansas city area

Skyler Taylor
Overland Park, KS · Member since 2015 · 10 posts · 1 vote

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.

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Brandon Holley
Lenexa, KS · Member since 2015 · 206 posts · 53 votes
11y

@Account Closed 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! 

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  • Mark Nolan
    Professional · Carlsbad, CA · Member since 2012 · 12k+ posts · 1k+ votes
    11y

    @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.

    0Reply
  • Brandon Holley
    Lenexa, KS · Member since 2015 · 206 posts · 53 votes
    11y

    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.

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  • Skyler Taylor
    OP
    Overland Park, KS · Member since 2015 · 10 posts · 1 vote
    11y
    Originally posted by @Account Closed:

    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. 

    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
    11y

    Welcome aboard @Skyler Taylor

    0Reply
  • Skyler Taylor
    OP
    Overland Park, KS · Member since 2015 · 10 posts · 1 vote
    11y
    Originally posted by @Skyler Taylor:
    Originally posted by @Account Closed:

    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 :)

    0Reply
  • Skyler Taylor
    OP
    Overland Park, KS · Member since 2015 · 10 posts · 1 vote
    11y
    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

    0Reply
  • Emily Powell
    Investor · Houston, TX · Member since 2014 · 208 posts · 135 votes
    11y

    Welcome, @Skyler Taylor.  This site is an awesome resource where you'll get a wide variety of opinions in every area of the industry.  It has served me well in my endeavors.  

    I also sent you a private message. Check it out.

    Best,

    Emily

    0Reply
  • Skyler Taylor
    OP
    Overland Park, KS · Member since 2015 · 10 posts · 1 vote
    11y
    Originally posted by @Account Closed:
    Originally posted by @Skyler Taylor:
    Originally posted by @Account Closed:

    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

    0Reply
  • Emily Powell
    Investor · Houston, TX · Member since 2014 · 208 posts · 135 votes
    11y

    Hey @Account Closed - 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."  

    0Reply
  • Account Closed
    Investor · Honolulu, HI · Member since 2013 · 3k+ posts · 1k+ votes
    11y
    Originally posted by @Emily Powell:

    Hey @Account Closed - 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.

    0Reply
  • Emily Powell
    Investor · Houston, TX · Member since 2014 · 208 posts · 135 votes
    11y

    A wink doesn't make your comment any less patronizing.  I am recusing myself from this conversation.  This is not why I'm on this site.  

    0Reply
  • Brandon Holley
    Lenexa, KS · Member since 2015 · 206 posts · 53 votes
    11y

    @Account Closed 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! 

    1Reply
  • Erik Nowacki
    Investor · Las Vegas and Tulsa · Member since 2014 · 123 posts · 200 votes
    11y

    @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

    1Reply
  • Shawn Foster
    Investor/Wholesaler/RE Agent · Kansas City, MO · Member since 2015 · 69 posts · 8 votes
    11y

    @Skyler Taylor which podcast are u referring to? I'm interested. Thanks

    0Reply
  • Skyler Taylor
    OP
    Overland Park, KS · Member since 2015 · 10 posts · 1 vote
    11y
    Originally posted by @Brandon Holley:

    @Account Closed 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

    0Reply
  • Skyler Taylor
    OP
    Overland Park, KS · Member since 2015 · 10 posts · 1 vote
    11y
    Originally posted by @Shawn Foster:

    @Skyler Taylor which podcast are u referring to? I'm interested. Thanks

     http://www.biggerpockets.com/renewsblog/2015/02/05/bp-podcast-108owning-350-million-real-estate-10x-rule-grant-cardone/

    0Reply
  • Sterling WhitePro Member
    Rental Property Investor · Indianapolis, IN · Member since 2014 · 554 posts · 153 votes
    11y

    Welcome to the site @Skyler Taylor! Looks like you are learning by actually doing which is great! I invest in the midwest specifically Indianapolis where its more on cash-flow versus appreciation(certain areas its different).

    But if you have any questions shoot me a DM!

    Nice to virtually meet you 

    Podcast Guest on Show #308
    0Reply
  • Ndy Onyido
    Toronto, Ontario · Member since 2014 · 615 posts · 172 votes
    11y

    @Skyler Taylor

    Welcome to the BP Nation...

    I was in KC early in the month and I loved it..:)

    Great and promising market.... 

    0Reply
  • Skyler Taylor
    OP
    Overland Park, KS · Member since 2015 · 10 posts · 1 vote
    11y
    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.

    0Reply
  • Cliff Harrison
    Rental Property Investor · Shawnee Mission, KS · Member since 2014 · 205 posts · 136 votes
    11y

    Hello and welcome to BP. I am also in OP and investing here in the metro. I mostly have SFR with a couple duplexes in kcmo and Grandview. Hope to see you around.

    0Reply
  • Thad MillerPro Member
    Engineer · Santa Ynez, CA · Member since 2013 · 72 posts · 23 votes
    11y

    I currently live and cash flow in SoCal, but I appreciate the nostalgia from growing up in Johnson County, KS.  I too am on the search in KC for my next acquisition since prices are up in Cali.  One nice thing about SoCal is that I just did a tenant change and bumped the rent 20%.  I was still the cheapest and got flooded with applicants.  You won't get that in the midwest. 

    0Reply
  • Skyler Taylor
    OP
    Overland Park, KS · Member since 2015 · 10 posts · 1 vote
    11y
    Originally posted by @Thad Miller:

    I currently live and cash flow in SoCal, but I appreciate the nostalgia from growing up in Johnson County, KS.  I too am on the search in KC for my next acquisition since prices are up in Cali.  One nice thing about SoCal is that I just did a tenant change and bumped the rent 20%.  I was still the cheapest and got flooded with applicants.  You won't get that in the midwest. 

    Glad to hear about your success Thad. I love purchasing property when the rent is below market value. The owner I recently purchased the full duplex from had been charging his tenant $850 for the past 5 years. I had the tenant removed and improved the unit up to my standard. Before I was even done renovating I had it rented for $1450 for a year and a half lease. Right here in the Midwest :)

    0Reply
  • Gregory Emmer
    Licensed Mortgage Lender · Fort Lauderdale, FL · Member since 2014 · 98 posts · 13 votes
    11y

    @Skyler Taylor Glad to see you've expanded beyond your traditional  analytics to come up with different ways to assess property values.  With an ever-changing market, we are real estate professionals need to change along with it.  California and Florida are great places to invest when the market is on the rise, so hopefully you'll consider coming back.  Through forums on BP, I'm sure you can engage with professionals in these markets to assess the feasibility of re-entering.  Good luck!

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