All Forum Posts by: Clayton Plummer

@Roger Lim -

The Kansas market is pretty good.  Kansas is a landlord friendly state, but not as friendly as the ones that always make the top ten list.

The downside to the market is that everything (not literally, but it feels like it) is 100+ years old.  It's neat from a historic view, but a headache from an investor view.  Most houses around here need to be demo'd and something modern put in it's place.

I'm not really a fan of all the apartments that replace the old houses.  I wish it were new houses, or that the apartments were built to look like old houses.  Something that kept the arcitechtural style.

Still, as an investor, I get it.  It's cheaper to put up a square box and at the end of the day it rents for the same amount.

@AJ Lee - From a completely outside view - not knowing anything about your situation - sell and take the $170K pay day (less the bills and closing).

It also opens up your VA loan again. You can keep using it for life.

As well, learn what the full amount is for your VA loan. Meaning, if you are allowed to buy $500K total on the VA loan in your area, you can buy two $240K houses with it (technically with all the closing costs and such). You can also max the VA out and only have to pull a traditional bank loan for the difference. OR, since you'll have $170K burning a hole in your pocket, pay cash.

Good luck with whatever you decide to do.

@Roger Lim -

A good place to start is your REIA:

https://lareic.com/

Also, finding a local agent (or two) here on BP is also a good way to meet more investors. I'm in the Kansas area and my local agent does a monthly group meeting with investors.

Good Luck!

@David Kim - a good place to start is your REIA:

https://delreia.com/

Also, finding a local agent (or two) here on BP is also a good way to meet more investors.  I'm in the Kansas area and my local agent does a monthly group meeting with investors.

Good Luck!

@Tip Mallick - a quick internet search and here are a few different links that will give you more or less the same results on landlord friendly states:

1. https://www.doorloop.com/blog/landlord-friendly-states

2. https://www.fortunebuilders.com/landlord-friendly-states/

3. https://www.steadily.com/blog/landlord-friendly-states

Good luck!

@Marco-Dane Samuels - Unless you're going to put in a mini-split system yourself (and you still need an electrician to finalize the wiring and a plumber to charge the system) $10,000 to $12,000 is par for the course on new HVAC systems.

@Andreu Ferragut - I am not familiar with the no income verification loan product, but I'd have to believe any bank product will require you to remove the illegal efficiency from the property.

I'd still say talk with your realtor and real estate attorney - and your lender (local bank - not Wells Fargo or any institutional bank).  They'll be able to give you correct info.

Good luck.

@ajescomiendo - I would start with a realtor from Bigger Pockets that understands investors and investing.  Find several in the area you want to invest and start doing some research on them.  Go to their company's website and read their profile.  Find any stats on number of houses sold in the last year.

Then I would start interviewing them via a phone call.  I think the BP Rookie podcast had a good episode on what to ask your realtor. . . but I don't remember the episode number.  You can probably google a good set of questions to start with and come up with some of your own.

From there, your chosen realtor should know a good real estate attorney.  You're going to need them to make sure all your documents and such are good to go.  Pay your money.  Definitely a situation of "you get what you pay for."  A good attorney won't be cheap, but they should also be reasonable.  Again, give them a call and have a chat about what you can expect from them.

Your realtor should know a good home inspector.  Don't cheap out.  If they don't, do some google searching and PAY MONEY for a good one.  The couple $1000 you might spend on a good home inspection will save you tens of thousands in head-aches and repairs.

Once you purchase a home you can start adding a general contractor, rental management company, etc to your team.

Basically, the money is in the phone.  The more you can have conversations with these people and really get to know them and let them know you, the stronger your team will be.  Don't assume anything on their behalf.  Manage expectations.

Good luck.

@Andreu Ferragut - save your cash and go with bank financing (or hard money).  You'll be able to buy more properties with your cash at 20% to 25% down if you go the conventional loan route.

Talk to your realtor and a real estate attorney in your area about this property.  Your realtor should know a good attorney to talk to about this property. Depending on how it is zoned will determine what steps you need to take.

Secondly, you'll need your cash to remove the efficiency.  The bank won't let you do a conventional loan on a property that has an illegal she-shed.

You could go the private lender route - i.e. hard money - and secure the property that way, but you would still need to remove the illegal efficiency to get refinanced by a bank.

Otherwise, good luck.  Sounds like a fun one to start with.  Definitely going to learn a lot!

@chrislyman - I don't know specifically, but I'm sure it is as good as any market.  Can you build a team there? (asking rhetorically - I don't want an answer).  What do you bring to the members of your team that makes them want to/like to work for you and with you?

Also, physically in Buffalo, SNOW!  Specifically snow removal.  You're going to need a good landscaping team to service your properties all times of year.  The snow in Buffalo is guaranteed every year.  It sits right on the end of Lake Erie and gets ALL the lake effect snow.

Not a show stopper, they know how to deal with snow and weather in Buffalo, but it is something to work into your numbers when you are doing your due diligence on a property.