All Forum Posts by: Kevin Kite

Hi @Mark Grozen-Smith,

I feel your pain.  I was living in LA (Calabasas) and started investing in Kansas City because of entry price point.  Eventually LA wasn't worth the cost of living so I took a transfer with my job and specifically targeted Austin for real estate.  Ever since I have stopped investing in KC to actually do something where I lived.

I have learned a few things since moving here.

1.  Although the Midwest has great cash-flow, you can make more money through appreciation (run your numbers).

2.  When you invest for appreciation its a greater risk.  If the market turns you are stuck upside down with negative cash-flow.

3.  Considering #1 and #2, I don't see Austin slowing down anytime soon.  I believe around 125 people move here daily and its a hot bed for Tech companies, start ups and other businesses.  The City is fun and has appeal to boot.  So I would consider Austin a safer appreciation bet.

I still own my Kansas City properties and have no plans on selling but I am planning all of my future in Austin.  If you still want the cash flow in the Austin area you can find it in the suburbs but the appreciation is not near as great.

If you need help getting started here feel free to reach out... and good luck in whatever you decide!

The rule of thumb I always hear is $1000 = 1000-1500 mailers = 20 leads = 1 sale.

Of course its different in every market.

Anyone?

Hello fellow BPers,

I have a pre foreclosure under contract that has 18k in back payments. The lender is stubborn and has told the seller that they will not budge on the back payments. I have been through a couple of REI training classes that have told us that lenders will indeed cut down the back payments. So my question is...

What are stratigies you use when talking to the seller mortgage's morgtage company to lower the back payments?

Also when you get an 3rd party authorization form signed to talk to the lender about the payments does it have to be

notarized?

Thanks for the advise!

Welcome to BP Phillip.  

You can find lots of places to network with the locals on the networking section of BP.

https://www.biggerpockets.com/forums/521-events-an...

I am sure I will see you at one.

Good luck in your REI adventures.

@Andrew Parker When you lease option you are a tenant until you exercise the option to purchase.  I do believe this would be a great way for you to go in your situation but I would not plan on renting out any rooms as you still would be a tenant yourself.

I do find lease options occasionally while looking for flips, if you are interested give me a holler and we can discuss.

@Saurabh Pahuja I would suggest reaching out to @Garret Ball for construction needs.

@Phil Mcnally It is really hard to find anything near a 1% rule in Austin, especially with the higher property taxes here.  I would suggest Indianapolis, Kansas City, Atlanta, Memphis, NE Ohio or other Midwest areas to get what you are looking for.

If you are set at finding something here in Austin feel free to reach out and I can tell you more about the area.

They are still doing great, as you may have heard, there was historic rain/floods in KC about 6 weeks ago.  1 of 3 of my properties were hit.  I believe dozens of USREEB properties were hit.  They had their crews on them right away and sent us emails telling us they would update us when they could.  So there I was waiting to hear what damages were going to be, afraid that it would eat all of my profits.  I was glad to hear it was only $191 to fix a drain in the basement.  I had one more maintenance charge to fix a door for $50.  These are all things I budgeted in my numbers so I am not worried.

Joe congrats on the 3rd!