All Forum Posts by: Dustin Beam

This thread is a little older, but if it was accurate then, it probably still holds up. 

Https://www.biggerpockets.com/forums/48/topics/276800-kansas-city-missouri-zip-codes

We all love dirt cheap properties... Unless we're the ones selling haha. 

I was going to suggest doing a cash out refinance, but that's bad idea if you're not cash flowing now. 

So that leaves you with sell (and pay capital gains) or 1031 (and save capital gains).  I've only done a 1031 once, but don't regret it. It gives you more purchasing power. Plus, there's a decent chance the buyer of your property would allow a delayed closing in order for you to better "identify" your next purchase. 

Good luck! 

Depends what the sale price is :) 

That sounds scary for investors in that area. Twenty five percent vacancy is significant. Although sounds like that number is largely due to buildings just finishing construction. 

I've never done it, so take it for what it's worth, but I've heard of people making a case to the city and getting their taxes lowered. 

Can't help you with psycho graphics, never heard of that until now! :) 

But as one tool, I have used city-data.com for income maps. It also shows potentially other useful info for people in a given area. But, as I'm sure you know, it's just one tool. I wouldn' t lean heavily on it. 

I didn't punch this into a mortgage calculator to confirm but it looks like :

20 year schedule

15 year balloon

ARM every 5 years at prime plus 1%

Is that right? Seems reasonable to me. I have a 10 year balloon and I'd venture to guess that's what most people dislike most because you're forced to either refinance or pay the sum. 

@Alan E. I just finished Scott Trench's book and if you haven't read it, you might want to. His book is aimed at people making 50k (ish) or more and basically gives solid advice throughout for someone starting out. 

Some of it applied to me, some didn't, but depending on where you are in life it could give some insight. 

Agreed. 

I have a spreadsheet available for download here the file place. It has an itemized CapX portion. I suggest people use mine or someone else's. Really not pushing mine, just a starting point for people. 

The reason I HATE when I see Cap X estimated by house value or rent value is that they aren't interlinked at all really. You can have two identical homes in different parts of town that could be 3x the home value and 3x the rent of the other. If you don't actually itemize those expenses, CapX could be way off. 

Also agree with suggestion to get actual quotes on insurance. I often say on here "aim small, hit small" which I stole from the movie The Patriot. The more exact you can get your analyzing, the less it matters if some of your calcs were off a little.