About to jump into KC...
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 <$100K. In Johnson Co, KS, between Oct 2013 & Oct 2014 400 SFRs sold <$100K. Between Oct 2014 & Oct 2015, 250. Between Oct 2015 & Oct 2016, 170. Between Oct 2016 and Oct 2017, 105.
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 ‘cash 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.