All Forum Posts by: Pete M.

BRRRRs can be done in any market, as has been noted, but the most important part is the team, who will handle the project from start to finish. Do you have agents or wholesalers who can find good deals and come up with accurate ARVs? Do you have trustworthy contractors that can finish projects on-time and on-budget? Does your PM agree with the rents, and can follow-through on getting them rented? Especially when you're BRRRRing remotely, any one of these "legs of the BRRRR stool" falling short can mean the deal is no longer what you thought you were getting.

With that said, I'm BRRRRing in Oklahoma City, Kansas City, and hopefully Columbus, OH, in the near future.  I'd focus more on the team you can put together in a city, vs the specific city itself, to be frank.  Lots of cities have good demographics and have opportunities.  I'll take a stellar team in a decent city over a mediocre team in a stellar city any day, honestly.

@Ryan Fox  Ah, was wondering.  The verbiage definitely makes it sound like they have the right to inspect (and will periodically), but that may go back to prioritizing "problematic" rentals vs blanket inspections everywhere.

@Ryan Fox Have you already done an inspection? No fine in the letter they sent, I think this was their "warning shot" that I'm on their list. I've heard anecdotally that most investors are simply ignoring the permits because there's no enforcement, which is why I'm asking for input from others here.

@Jerry Cloe Which other KC gov't groups are you dealing with?

All,

Just opening up our first long-term rental property in KCMO, and got a letter out-of-the-blue from the KC Health Department, saying they think the property is being used as a rental, and therefore needs a permit (plus fees and inspections, of course), per City Ordinance 180248:  

http://cityclerk.kcmo.org/LiveWeb/Documents/Document.aspx?q=UKuT5OsvHwwBwsWnTA6Jx41MkdV775nPya2YWKBCCTeW1%2BhYYo%2Be92WC1m87Dw59

Before anyone helpfully contributes with "don't be a slumlord"--I'm not and will not be, and our unit is freshly rehab'd and quite nice.  I'm not worried about it actually passing inspections, but I'd rather not deal with the city bureaucracy, fees, and inspections unless necessary.  I'm curious as to whether other investors are registering and dealing with the extra hoops and costs, or essentially ignoring it.  Is this being enforced?  Sec 34-863 & 34-864 covers not getting a permit in the first place:

Thanks in advance.

@Casey Christensen Thanks!

Following, looking for similar to @Casey Christensen

Have done BRRRRs in OKC in the past; still like the market, but as @Landon Whitt explains, prices are going up and margins are squeezed.  I was buying in all-cash (and there are still wholesalers selling reasonable deals with quick closing), but I'm also leery of buying anything without proper inspections anymore.  Best areas for cash flow are "C" neighborhoods; if you're buying for appreciation, there are better markets.

@Guy Yoes My wife and I own all of the properties (via an LLC). We have a local PM who manages the day-to-day, but it's never completely hands off. Doing two evictions right now... when it rains, it pours, as they say. Happy to talk more offline, feel free to DM me.

@Guy Yoes Out-of-state investor here, have eight SFRs in greater OKC. I do BRRRRing, so the numbers work better. After PITI + PM fee + vacancy/CapEx/tax withholdings, I look for at least $150-$250 per door in monthly cash flow to be worth my time. Most are Sec 8 tenants, so always comes with painful turnovers having to deal with housing, but get a good one and they will stay a long time. We buy out there for cash flow... if you want appreciation, there are much better markets.

@Deborah Burian Will DM you.