All Forum Posts by: Chris Dawson

@Preston Steele what kind of multi family units are you looking for in KC?  What price range and time frame to buy?

@Chris Billington looks like you already made your trip to KC.  What price range are you looking at?  Shoot me a PM if you need any help.

@Brent Kiger are you by any chance doing an FHA loan? Are you using our standard KCRAR contracts? If you answer yes to either of these questions, then more than likely the seller will HAVE TO treat the property for termites. Read your contract, paragraph 13, section F.

If you are not using the standard KCRAR contracts and you do not have an FHA loan, then it will be up to you and your agent to negotiate who will pay for the treatment.

Most important thing to know..... This Is NOT A Deal Breaker!  Every house in Kansas City that has wood siding, or a wood deck, or wood beams or any other piece of wood that comes into contact with the soil will eventually be visited by termites.  Its just a matter of time!  Termite treatment is very common in KC.  Most of the time, all you need to do is a yearly termite treatment.  If there is termite damage, your inspector can tell you exactly what needs to be done to fix it and then you can try to renegotiate your contract to get the seller to pay for it (or reduce the sale price).

Let us know how it turns out!

In my experiences, 3-4 bedroom SFRs are much easier to rent than 2 bed SFRs.  Most people looking for only a 2 bed unit tend to migrate towards apartments where they don't have to worry about taking care of a yard.  Most renters who need at least 3 bedrooms almost always have kids and want a yard; which is why I prefer 1-2 bedroom apartments over 3+ bedroom apartments.

This probably doesn't apply to niche markets like a college town, but in Kansas City, it holds up pretty true for most of the area.

Make sure you have good insurance on your properties and stop worrying about uncontrollable factors like mother nature!  Every market is susceptible to some type of sever weather so don't let that influence your decision.  Just make sure your insurance will cover whatever natural disasters are common in that area and that you include your insurance costs in your proforma.

You might want to try Winvestors.  They meet every Wed. morning for breakfast at 9AM at Lucky Brewgrille  5401 Johnson Dr. Mission Ks.  I've gone to a couple of these and I was impressed with the number of attendees considering they meet every week.  

I'd be up for a small group meeting.  I live up north, but I work downtown.

@Brent Kiger there will always be somebody out there looking for a 1 bedroom unit.  The problem is they tend to be shorter term tenants.  People going through a divorce, somebody new to town, recent college grad, downsizing elders, disabled people, are all good candidates for a single bedroom unit, but aside from the downsizing elders and disabled tenants, they tend to be 1 year or less tenants.

I think you need to focus on the numbers and decide what is best for you.  Is it currently rented?  What are the rent amounts?  Do the numbers still work for you if one unit is vacant for several months?  Do the numbers still work if you reduce the rents by 10% (most sellers of vacant rentals exaggerate how much rent they can get)?

If you still don't feel comfortable after crunching the numbers, then walk away.  There are always more fish in the sea!

@John O. The west side of 64106 is much better than the east side.  The west side will mostly be condos as that is the heart of downtown Kansas City, MO.  The east side is mostly industrial and low income housing.

@Andrew R. it sounds like you might have a full policy instead of a landlord policy (probably not the actually name of the policy).  Make sure your insurance agent knows that this is a rental property and not a primary, vacation, or flip property.  Also, if you have a current tenant when you get your insurance, it will be cheaper than if you get insurance when the house is vacant.

I have had very good rates with Shelter Insurance for my rentals.  

@Robert Andrade, @Peter MacKercher has provided you with excellent advise.  I would only add that if the seller is a bank (if the property is a foreclosure), you need to make sure you CAREFULLY read over the bank's addendums/contracts.  99.99% of the time, there will be a clause in the bank's contract that states that the bank's contract supersedes the sales contract.  It is very common for the banks to do one of the following: 

1) Shorten the inspection period

2) Remove the inspection clause all together

3) Make it so you lose your deposit/earnest money if you back out of the contract because of defects found in the inspection

Banks, especially the big, national banks, will not allow you or your lawyer to modify their contracts in any way.  Make sure your real estate agent is familiar with this type of transaction and make them explain anything you don't understand.  Like Peter said, it is the agent's responsibility to fully explain the contract and the procedure moving forward.

Hope this helps.

Good luck on your first investment!