Let me give a bit of my background. I do research and analysis for my wife’s family’s business, and assist my mother-in-law in her brokerage/Realtor duties. My mother-in-law has a background in commercial appraisal and entrepreneurship, has a brokerage, and finance MBAs. Her business partner oversees the contracting, rehabbing, on-the-ground property evaluations, and schmoozing. He has 30 years experience on the MO side, and came to OKC in 2008.
Here in OKC, we do a balance (as best we can) of wholesaling, rentals, lease-purchases, rehabs that slightly raise the bar for quality in their neighborhoods, as well as full historical restorations (my favorite as someone with a history degree).
Generally, OKC was not significantly hit by the housing crisis. Tulsa was to some extent, and KC, MO definitely was.
We’ve gotten the green light from our primary hedge funder to get going on the KC side.
I’d like your comments/opinions/advice on what I’ve observed so far for KC, KS. I apologize if this is too much for one post.
1) Currently, in OKC, there are 334 SFRs on MLS
It appears that the inventory of wholesaleable and fixer-uppers is drastically dwindling, at least as far as being sold on MLS. I know the $/SF is higher for everything compared to OKC. What are you all paying for wholesales or fixer-uppers?
2) In OKC, the past 4 years, on average 25 properties go to the sheriff sale every other week. For the past month, there have been at most 8-10 properties every other week at the JoCo sheriff sale. Has this been the norm for a while? Or does KC, KS have sheriff sale cycles?
3) What’s up with JoCo tax sales? In Oklahoma, once a year, on the same days, every county auctions off properties that have taxes unpaid for 3 years. OKC’s county has 1000s of parcels at this sale. Wyandotte’s list is pretty big. But I’ve been trying to figure out JoCo, asking the relevant authorities many questions, but not getting clear answers. Does anyone on here know anything more? When does the list get published? When does the public auction happen? Is JoCo different from Wyandotte? Does JoCo not have the sale on one day (or set of days)?
4) In OKC’s county, land records are freely viewable online. Court records for this county and the surround counties are freely viewable online. Johnson Co, much less KS, only has subscription access to land records, and no court records online besides very bare dockets. Any suggestions on dealing with this situation?
5) In OKC's county, there are currently 72 active REO listings on MLS. Jackson Co, MO has 63. However, Johnson & Wyandotte *combined* have 45. Is this another sign of the discount-level inventory drying up?
6) Here on BP, in this KC,KS forum, am I correct in understanding that most discussions are on âcash flow', BRRRR, networking, but not retail-level rehabs, Sheriff Sales, or tax sales? Is there anyone here who routinely has success with retail-level rehabs, Sheriff Sale deals, and the tax sale? Or has the situation for these particular opportunities changed?
7) The consensus seems to be that the best/quickest ROI is in condo & MF rentals, with SFR rentals next. Am I correct?
8) Our hedge funder is based in the KC,KS area. Our business partner’s wife and family are still in KC, MO, and he frequently goes back there, and so will be on the KS side quite often. But, his contracting and rehab crew are here in OKC. My mother-in-law has her KS Brokerage license. We have 2 people preparing to be our boots-on-the-ground. Our business partner wants to pursue wholesaling first, but I know that there are a good number of established wholesalers on the KS side already. And I don’t think we are wanting to start off with OOS property management.
I really appreciate any input on any of my questions.
No takers? Too much in one post?
I guess I'll try one more bump...
That's a lot all in one post, and there's not likely to be anyone that can compare KC to OKC for you. It also seems like you're attacking the KC market for not being the way you want it. As an appraiser, I have access to county records in JoCo and six other KS counties. Each county is different, but the subscription fees aren't bad at all for most of these. You'll need to qualify for access though.
KC metro also has massively diverse markets within it. You'll likely need to narrow your focus to get the help you're wanting.
I'm not attacking it. I didn't mean for it to come off that way. I was giving details of the situation in OKC to explain why I was asking these specific questions, and where I got my assumptions and expectations. I was trying to present my observations about KC and was hoping someone could say if my observations were correct or not.
I know there's a lot of competition on the flip side for some the more affordable homes.... to be honest I forget the price range but want to say the 100-150k ARV range. Lots of "flippers" who watched one too many TV shows bidding up the prices so pretty low profits and probably not worth traveling for. There were better deals/profits on higher end property but less of them.
The market is KC is frustrating right now.... so many offers so many people willing to toss money into homes. I bid on this want to say like 120k (forget exact number) I wasn't even close I don't think, something like 14 offers.
Go check out the pending/contingent filter w/ redfin in 64114.... places going like a week on MLS and multiple offers over asking.
No idea if this helped or answered your questions lol....
Join the Largest Real Estate Investing Community
Basic membership is free, forever.