All Forum Posts by: Lee Ripma

@Account Closed I'd consider going to a 5 unit, less competition, more straightforward valuations on properties. 

@Claudia Tatiana Crawford

You could certainly get your agent and even broker's license while still in school. Just learn all you can and the next steps will become clear. 

@Bryce Moore

I am using Shelter and I'm not impressed! I will try to switch over to REI Guard once my first quarter with shelter is up. I'm paying about 140 for a duplex not in a flood zone of NKC for comparison, just got the policy last month.

@Sara Soleimani

If you want TK I would buy a renovated apartment building and get into the commercial space (5 units and over), you could start with a 5 or 6 unit in one of the cash-flowing markets mentioned in this thread. I'm in the process of rehabbing 6 units I bought on the MLS using a local team in KC. The properties are residential, a duplex and a fourplex. Property valuation is so much more straightforward for commercial, I'll only buy 5 plus units in the future.

@Brenda Kinney

I certainly agree with @Justin R. if you plan on selling it. You might as well get top dollar for it if you sell. You'll be able to get the money to do so by borrowing against the house. In terms of the taxes you could do a 1031 exchange if you're interested in keeping the money in real estate. 

If I were you I would want to turn this property into cash-flow. There are two ways I see to do it (but I'm sure there are more). You could renovate it to a nice standard for a rental and maybe be able to rent it for 2500 (I have no idea where it is), so cash flowing without a mortgage around 1250 a month, not bad. Plus you get to hold it for appreciation and could take out a HELOC against it to do get cash to invest in other properties. If you can't pay for the renovations on it you should be able to take out a HELOC on it to get the renovation funds.

Or you could do what Justin suggested but then take that money and do a 1031 exchange and get into a small apartment that really cash-flows. If you have an ARV of 800k but you'll get to keep 625k then that is 25% of a 2.5 million dollar apartment. You pick up an apartment in the mid-west that will pay you enough cash-flow to live out your days comfortably!

If I were you I would do the renovations to really up that ARV then get a long term mortgage to pay for those and keep it as a rental. Then I'd use the funds borrowed against the house to get into a larger apartment that cash-flows. But that's me and I don't have a sweet cash cow waiting to let me retire, you do!

Hi @Justin M Christian,

I live in California but I invest in KC. Thats cool about the smart PM startup! Loft spaces are interesting and there are certainly a lot of cool old brick warehouse buildings in KC that you could turn into lofts, do you know a lot about converting spaces into lofts? I think this could be a really cool opportunity. PM me if you want to connect! 

I haven't worked with any of those companies. I'm paying 8% plus first month's rent when you have a new lease for PM in KC, so those rates sound standard to me. There are certainly a lot of folks in KC who say they are wholesalers but really they sell TK. I actually split my time between San Diego and LA so I'm happy to talk with you about my experiences in KC, PM me if you want to chat. Best of luck to you! 

@Brandon Leong I was closing with hard money, so possible that these items are not required. I will be refinancing soon with "traditional bank money" so I may need these items. I'm glad to know about them, I'll keep you posted on my next appraisal cost. 

I paid 450 in KC last month but I didn't have those two optional items.