All Forum Posts by: Cliff Harrison
Cliff Harrison has started 22 posts and replied 199 times.
Post: Where do you park your money? In replace of a savings account.
- Rental Property Investor
- Shawnee Mission, KS
- Posts 205
- Votes 136
I have a brokerage account with one of the larger discount brokerage houses. I keep a portion in hand picked dividend stocks, a few growth stocks, a REIT fund, a portion in diversified bond ETFs, and a very broad stock market ETF. When I have a RE transaction coming up, I sell off mostly from the broad stock ETF. These funds have extremely low expense ratios and this house offers their broad market fund with zero commission fee.
Post: Where do you park your money? In replace of a savings account.
- Rental Property Investor
- Shawnee Mission, KS
- Posts 205
- Votes 136
I have a brokerage account with Schwab. I keep a portion in hand picked dividend stocks, a few growth stocks, a REIT fund, a portion in diversified bond ETFs, and a very broad stock market ETF. When I have a RE transaction coming up, I sell off mostly from the broad stock ETF. These funds have extremely low expense ratios and Schwab offers their broad fund with zero commission fee. Once it goes to cash, I electronic transfer to my bank. I realize there is market risk but I have and will keep this up over the long haul and it's average over 10% CAGR over past 15 years through downturns and upturns. I was a fairly avid traditional market investor before getting into REI and I'll keep both in my future.
Post: Hi from Kansas City
- Rental Property Investor
- Shawnee Mission, KS
- Posts 205
- Votes 136
@Mitch Rice welcome to the forum. I live in OP, also work in IT, and am mostly doing what you are planning to do. What areas are you buying in?
Cliff
Post: Closing on rentals #6 and #7 this week
- Rental Property Investor
- Shawnee Mission, KS
- Posts 205
- Votes 136
@Ray Orellano sent you the info
@Alisa O. so far I'm using MLS listings, an agent friendly broker, craigslist, BP marketplace, wholesalers. Majority have been found on MLS.
Post: Closing on rentals #6 and #7 this week
- Rental Property Investor
- Shawnee Mission, KS
- Posts 205
- Votes 136
This week i am looking forward to closing on additional rental properties
#6 (a SFR in South KC, recently renovated 3/1/1, $53k purchase $850 projected rent)
#7 (a SFR in Grandview MO, clean 3/1/1 basically more in ready $54k purchase $800 projected rent).
There are a few more in the pipeline. I overcame a potential roadblock by establishing relationship and getting approved by a smaller bank who makes portfolio loans.
Response to the two units has been pretty good after I posted them on a few sites. I have open houses scheduled this week, if I find a tenant before turning over to my property management company I will save the leasing commission (currently .75 monthly rent). My strategy so far has been to buy properties that don't need extensive repairs.
I have 4 out of the previous 5 rented out as of now. The remaining property is a Grandview duplex I've been working on light rehab and start showings this week.
Post: Buying an income property in Kansas City
- Rental Property Investor
- Shawnee Mission, KS
- Posts 205
- Votes 136
Originally posted by @Vince Cline:
One thing to keep in mind is that Cerner is just beginning construction on its new Trails Campus in the Bannister/South KC area. It's actually going to be in place of the old Bannister Mall.
That is true, and I hope it has a big positive impact on the area. But the existing big Cerner complex right off 435 hasn't helped lift the area much since all the employees commute in, so I would recommend that your deals stand on their own 'as-is' not counting on too much lift from the new complex, if we get lift then good for us but I would not pay any premiums for that area.
Post: Buying an income property in Kansas City
- Rental Property Investor
- Shawnee Mission, KS
- Posts 205
- Votes 136
Originally posted by @Andrew Syrios:
Originally posted by @Hamid Taba:
Hello,
I have been searching through for income properties in Kansas City. The numbers are pretty good but since I am from California, I was wandering if anyone has any knowledge about different neighborhoods there. I likes the opportunities in Raytown and the area close to the Kansas City Zoo. Please let me know if you have any experiences in these areas or if you have any recommendation about other areas as well.
Thank you,
Hamid
Raytown is good, as is Grandview. I would stay away from the area near the zoo, it's pretty sketchy. You definitely want to be either west of Troost or east of 435.
I agree with Andrew's comment.
Of the areas mentioned in the thread, in my opinion in terms of overall performance, Grandview is top, then Raytown, then Independence, than Bannister/South KC, then Swope Park/Zoo area inside 435 (MO side).
Post: Kansas City TK $79,900 Purchase, Making 12% Cap
- Rental Property Investor
- Shawnee Mission, KS
- Posts 205
- Votes 136
@Account Closed
What is the address of the house? It looks like a decent deal for a turnkey. If this is in the south kc area near Bannister/Blue Ridge/470 I think $1000 is the very top of the market for a 3 bedroom.
Adding in vacancy and expenses (tenant turnovers, repairs, CapEx layaway) will degrade the return somewhat but it's still going to cash flow for you. Congrats.
Post: Closed on properties #4 and #5 today
- Rental Property Investor
- Shawnee Mission, KS
- Posts 205
- Votes 136
Originally posted by @Timothy Aughinbaugh:
@Cliff
I own the duplex down the road on 12th. Paid 41,500 and mine is on 1.2 acres. Rent them for 575 each ????
Hey Tim, is that a question for me? Good to know someone else owning right in that area. How long have you owned there? So far Grandview area has worked out very well, as well as Red Bridge Road area around the IHOP prayer room. Three out of my next four are in 64030.
Cliff
Post: Closed on properties #4 and #5 today
- Rental Property Investor
- Shawnee Mission, KS
- Posts 205
- Votes 136
Originally posted by @Keith Hogan:
Originally posted by @Cliff Harrison:
Had a six weeks gap between the first three and these two. The first three SFRs are all rented at or above the income assumptions with no surprises so far.
#4 is a Duplex located in Grandview, MO. Both sides are vacant but it is in good condition and should rent for $575 a side on a $60,000 purchase. Plus it has a huge back lot that I may be able to build on later.
#5 is a 3 bedroom SFR raised ranch with two car garage. It comes with a tenant, at below market rent. But it will be cash flowing from day one at $45k purchase. This one is in South Kansas City just off 470.
I have #6, #7, #8, and #9 under contract. 6,7,8 are all 3 bedroom SFRs close to move-in-ready condition. #9 will be the first rehab project, and I may try flipping it with rental as the second option.
I've screened hundreds of houses, and looked at 50+ houses and had several deals fall through, some due to inspection issues. But overall things are going well and I feel pretty good about what I've bought. My property management company seems to be working out as well, which I know will be critical to long term success since I'm not managing these myself.
I'll check back in with an update in a month when the next batch closes.
Cliff,
How do you fund your projects if you don't mind my asking? Just getting started in a new location.
Hi Keith - for the first nine properties, i am doing conventional 30 year loans with 25% down. I am funding the down payments using my own primary residence home equity (took out a 3% first mortgage on my previously free-and-clear house). I have a couple of contacts for local portfolio lenders (commercial loans) to continue acquiring beyond the first 10 financed properties. I also have reserves from many years working in IT, which I continue to do every day, but I am working towards replacing that income stream. So far I have not had to touch a dime of savings though. I also sold a sports car which netted a couple of (smallish) down payments and saved us on insurance and property taxes.