All Forum Posts by: Austin Petrie

@Hector J Gonzalez just to clarify, you mean start up companies?

If so, then in what regards? Like are business regulations relaxed, are there already a lot of start ups there, or ...?

Thanks for the advice everyone! I definitely agree that there are a lot more metrics beyond cap rate to consider and will work on learning individual neighborhoods/submarkets as well.

That's a great idea @Chris Grenzig I'll reach out to some brokers.

@Matt K. sorry for the confusion, I actually am referring to commercial multifamilies in this situation. My long-term plans are to move into apartment investing and I am working with someone right now who does that. I'm starting the process of deal finding for him for properties up to $10mil. Therefore I'm working on learning the commercial real estate environment in KC. I'll update my profile to better reflect this.

@Alexis Riveron it is really going to depend on your investment criteria. This is a relatively high crime rate zip code (https://www.bestplaces.net/crime/zip-code/kansas/k... as one reference). You should expect higher vacancy rates and more difficult tenants. Personally, I stay away from areas like this, and as an investor who only has 1 other property and is new to this market, it is probably in your best interest to avoid this property.

@Account Closed I actually have looked at the CBRE reports for a few cities a while back but had forgotten about that, so thank you for the reminder!

Thank you @Bjorn Ahlblad, @Theo Hicks, and @Jameson Sullivan for your responses!

It is good to know that this site is at least relatively in line with what you are seeing. I only plan to use this cap rate info as a highest level starting point to work off of. You all bring up very valuable points as far as further analysis goes.

I'm looking for cap rates in Kansas City for each property class and came across apartmentloanstore.com

Does anyone use this site to get a decently reliable estimate of current cap rates for the city you invest in?

For example, they show these cap rates for KC (https://apartmentloanstore.com/kansas-city/kansas/cap-loan-rates):

• Luxury - 4.62
• A class - 5.14
• B class - 5.67
• C class - 6.24
• Value add - 6.45

If you don't think this site is reliable, besides costar, what resources do you use to find market cap rates?

@Tristan J. welcome and congrats on taking this step in your investment career! As I'm sure you have seen by now, the BP community is amazing so don't be hesitant to ask any questions you might have. You will receive a wealth of knowledge. Good luck on your journey!

@Claudia Starr you might want to look into finding a mortgage broker / direct lender. They work with numerous banks in your area so they can shop around for the best loan terms for you. The brokers I've connected with have also been very knowledgeable with loans for investments which has been very helpful. The benefits you get from having this person help you get the best loan deal possible far outweighs their fee (which some even waive since the bank also pays them a finders fee).

@Mike D'Arrigo ok gotcha, thanks for clarifying!