Brand new to the real estate investing game. I would like to focus on multi-family, starting with small 2-4 unit properties and am definitely open to house hacking. I dont have an issue moving into the KCMO market and I think I would prefer to stay out of south JOCO unless I find an unbelievable deal.
I have a few questions;
1. I know the obvious places to stay out of, due to high crime rates, poor schools, etc, especially if I will be house hacking. I would love to hear from those of you with experience in Waldo, Westport, Volker, South Plaza areas. Any advice you have about buying and then renting there?
2. Next questions is whether I should sell or rent my current home. My initial plan is to sell and use the money for a down payment on a multi-family that I can house hack, but am open to advice.
I currently own my home in Roeland Park, 2 bed 1 bath, large back yard, am in the process of renovating the kitchen(painted cabinets, new back splash, new counter top.
What are your thoughts on if it would be a better move to sell and invest the proceeds or try to rent it. I honestly dont think I can get the 1% rule with my house, but maybe I'm wrong.
3. How do you determine if a deal is worth moving forward for you or if its time to back out? I've read forums and books and the such but would love to hear it from investors in the area.
4. What are your thoughts on managing the first property yourself and just purchasing a home warranty for the major repairs?
Any local advice that you have would be much appreciated.
Hi Kate, Roeland Park is a hot area. Why don't you take some pictures and put up a test ad on Zillow/Hotpads/Tulia to see if you can get high enough rent to make your primary residence cash flow? Then start the hunt for a nice tri or quad you can house hack with super low owner interest occupied loan? Let me know if you want to chat further about this or if you want me to set you up on email for every new MF property that comes on market in your target area.
Thank you for the suggestion! That’s a fantastic idea. Also, I’d love to be put on the MF email.
Appreciate the help!
You could also check with a property manager to see what the rents are going for in your area and use that to determine whether to rent or to sell.
@Kate Buenger How long have you owned and lived in this primary residence. A few years back as a newbie investor i moved out of my live in flip 2 months before I couldn’t have avoided capital gains tax. Not sure about KS, that was in MO. Depending on that, I would then talk to some lenders and see ignore you can leverage the equity Byrd refinancing. What are your end goals? To have a rental portfolio? As long as you cannot make the numbers work on your current home-I might keep it! It will help you get some landlord Expericence too. Michelle will be a great resource for sourcing properties, but let me know if you’d like to chat strategy! We’re here to help!
@Kate Buenger - my responses related to your questions:
1. North of the River, MO side...trust me.
2. Have you lived in it for 2 of the last 5 years? Do you have enough capital for the downpayment on a multi? If no then yes, don't sell. If yes then no, sell.
3. You need to learn your numbers and sit down with some experienced investors. Figure out what you want and then have people who are killing it give you some advice on potential deals you want to act on.
4. Don't purchase the home warranty, total waste. Yes, manage yourself. Read the BP book on land lording.
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