All Forum Posts by: Kiera Underwood

@Albert Chun You might want to look at Oklahoma as well. It's less flooded, stable and has very approachable price points. You'll have to find the right lender, but you can find a property and be all in at 15k. You'll just have to get specific and move quickly when it becomes available! 

You can find a great team that serves you via turnkey and other strategies. Just read reviews!! Ask to talk to current clients. My fear is that people from BP get linked with "investment focused realtors" that don't know too much about investing haha. Go where the experience is! That said I wouldn't start with a big rehab. Without having much experience you're definitely opening yourself up to some risk. A little garage conversion..maybe.

There are so many questions I would ask but most importantly: How many deals has your team done for out of state investors? Can I talk to some of them? Where can I read some reviews? Can I fly out to meet you? 

@Ray Alvarez I agree with @Vickie Parker OKC has A LOT of single-family options and a decent amount of multifamily if you're willing to take a slight dip in returns. 

In c class areas you can find 60-80k homes at 8% cap rates. That's in older suburbia and areas that won't have much appreciation beyond keeping up with increases in taxes and insurance. In 80k-120k B class areas you can get an 8% cap with the right provider, but typically it's a bit under that. In A class you're normally looking at 150k+ and ~6% cap rates. That said I saw new construction today that was $220k and at a 7% cap rate. Nothing like an easy $300/month cash flow, low to no maintenance and great tenants! 

OOS investors are flocking here and it's becoming more obvious why! 

@Shonari Wynter happy to talk about OKC all day!

@Shonari Wynter I'd start with buy and hold if at all possible. Doing a flip is a big jump. Develop your relationship with a team that can help you with buy and hold to learn and then take you into flips when the market is better for it and you're more experienced. You mentioned building capital to reach the buy and hold phase, is 20% down of 60k outside of doable right now? OKC offers properties with good returns with those numbers, so you've got options to get into properties with less on the line than potentially expected! If that's beyond capacity right now, you might consider a house hack. With that you can bring only 5% down and likely still reduce living costs. 

For preliminary work through it's tough to tell. If the property is occupied, asking the tenants if their washer backs up can be helpful. Washers dump the most water at once and regular backups at the washer drain are a good indication of mainline issues. It's a bit out of the box, but you could also turn on all the water and run the washer if there are no tenants. You might look like a crazy person, but if you're trying to know before you do any type of inspection, this is an option. 

However, a mainline issue isn't always a deal-breaker! I advise everyone to do a scope and sometimes there are issues.. invasive roots, a lip in the line, or old lines that need to be replaced with PVC. Asking the seller to correct these items or provide a credit could be an easy solution. 

If you do move forward to the inspection phase I'd just get a recording of your scope, that way you've got big more leverage to ask for a replacement or repair via video evidence! 

Good luck!!

@Monica Sutton for a first time investment I'd consider something less than a BRRRR. I think that developing a relationship with a team on an investment that's a bit more straightforward might be a good interview process for a team.

With a BRRR the numbers can look great, but there are often surprises behind the walls. If you've not seen how a team handles an easier deal you're putting a lot of blind faith into a team that's going to have to handle a deal where there will likely be hiccups.

I say dip your toes in, take on something safe and get comfortable. Push for a more ambitious move once you've got a property or two under your belt! 

@Pete Osceola why Houston?

Good luck with changing up the strategy!! 

@Jason Theus I'm happy to talk about OKC anytime! 

@Simon Schermerhorn Good call! For everyone out of state, it's cash then re-finance. For in-state, they'll often go commercial.

@Simon Schermerhorn What's your strategy for financing? Will you come in all cash or do you have a commercial lender that's willing to help you with out of state distressed properties?