All Forum Posts by: Lee Ripma

In this case I would personally use DIY cost seg, they offer audit protection. I do studies with them even on small props. Feel free to DM me for a discount code. 

Not tax or legal advice, just what I personally do! 

@Michael Doughty 

As others have said it’s more about you and your plans, income, etc because the question is really is cost seg worth it for me this year on this house. If I were answering that question the answer for me would be yes. I do cost segs on every property I buy and I benefit from those studies in the form of significant tax savings (I use an inexpensive algorithm based study, DM me for the name). 
Not tax or legal advice so seek your own professionals! 

The thing I don't like about the calculator is that it puts capital expenses (CapEx) with operating expenses (OpEx) I often see folks use it with high capex and incorrect assumptions about opex costs making every deal not pencil. @Nicholas L. is right, prices and rates are high so cash flow is eaten up by debt service. However there is a little less competition and some downward pressure on pricing. Rates won’t be at 7.5% forever. So keep thar in mind as you use the calculators! 

I like Sideline for just one person. 

@Hunter Kahn

Love that you’re going for it! See my podcast episode 373 where I lived in a high priced CA market and invested in KC then started investing locally in LA. I think you can make either the Boulder or KC market work but I think you should pick one and master it first. You could look in both places but once you commit to your first deal in either location finish it before doing your second deal. You’ll make a lot of mistakes on your first deal that you can apply to 2nd, 3rd, etc. 

My two cents and keep us posted on what you decide to do! 

@Isaac Isaia

Feel free to DM to be added to our buyer's list, we sell MF all over the metro. 

@James Gillice

You've gotten some good advice already so I'll just chime in with a few things that may be helpful. 

1. Very unlikely you'll ever get money out of the former tenants, it is probably not worth pursuing beyond keeping the security deposit. 

2. It is always best to sell from a position of strength, not desperation. I don't know exactly where we are talking about but I'm guessing it is KCMO urban core, some pockets will sell for high prices to owner-occupants. So if this is an option you might actually come out well on the sale. Owner-occupants will usually pay more than investors buying rentals. They do want a rehabbed product without much capex (turnkey). I would be happy to pull the comps for you if it would be helpful. We always tell our investor clients that owner-occupants pay the most so see if you can dispose of some or all of your portfolio to owner-occupants. 

3. There might be some value in your low-rate mortgage, like if you're able to sell as a lease option to owner-occupants. 

4. You are better off spending the time to make a good decision than making a pressured decision, see 1. on selling from a position of strength. 

5. Selling the house as is right now might cause you to lose some money but it will also allow you to move on, never underestimate the value of a good night's sleep. 

A lot of the above depends upon the location of the house, current condition, and what it will cost to get it up to rent ready status or for sale status. 

I commend you for taking to the forums to get some good advice on what to do!

Lutz Sales + Investments Assistant and Runner

Company description: Lutz Sales + Investments is a boutique real estate brokerage specializing in investment sales in the Kansas City market. We close hundreds of units a year and are seeking a motivated associate to join our team. Ideally, we find someone who can grow with us and take on more responsibility through time. There is a lot of opportunity in real estate for self-starters! This introduction to commercial real estate is not something you can learn in a classroom.

Duties:

Be present for inspections. Record videos and photos of each unit as they are being walked. Interface with clients, organize keys for access, take notes on condition. Must have the technical knowledge to take photos/videos from your phone and upload them to Dropbox or other similar media storage.

Take pictures and videos of properies as needed for listings, pre listings or leasing.

Post notice on doors for future inspections.

Set lockboxes at properties for future access.

Pick up keys from property managers, make copies, return keys after inspections and or appraisal. 

Placing for sale signs at the property and taking them down as needed.

Meet inspectors, appraisals, photographers, and tradespeople at properties

Errands on request and as needed.

There is a LOT of driving required. Mileage is reimbursed at the federal mileage rate but reliable transportation is critical.

There is a lot of interfacing with buyers, sellers, and vendors. Professional communication and appearance is required.

Duties if interested, not required:

Real Estate Sales - this could be developed at a later time if interested.

Oversee unit make ready - unit turn and rehab organziation and coordination.

Drone footage for listings - We have the drones, you learn to fly them.

Listing photos - Professional-looking photos for listings.

Requirements:

Driver’s license

Reliable vehicle (you will be paid federal mileage rate)

Already have or will get within 6 months - MO & KS RE license - negotiable

Comfortable entering properties, talking to tenants, paying attention to and learning about real estate

Profesional and friendly

Terms:

Hourly, miles and drive time paid from office in Overland Park

Track time, mileage, and expenses in Harvest - paid weekly

1099 contractor

Can become full time position after trial period

If you want to learn more about us I was on BP373 

I personally do a cost seg on every property that I buy, since I benefit from the losses generated. I use DIY cost seg for these small studies, feel free to DM me for my friends and family discount code. 

This is not tax or legal advice, just what I would do in this situation! 

@Mitchell Bumgardner

Warrensburg is a great little market for small MF, we often have both on and off market MF there. Several other options within 60 miles of Whitman AFB. Happy to put you on our active buyers list. 

Awesome work getting going, you’ll be amazed at what you can achieve in just a few years.