All Forum Posts by: Marc Lease

@Tom Ott Thanks - will do. Have looked at Cleveland, but concerned about job and population growth trends.

@Eric P. Excellent point. I'm planning to drive a few areas tomorrow and Ruskin is on my list.

@Sean Tarpenning Thanks for the area info. How would you characterize the Ruskin neighborhood; C+?  Meaning high rate of rentals, normally lower appreciation (were it not for the Cerner jobs, etc.) and solid cash flow, but potentially troublesome if your property manager doesn't screen tenants well. If you have some time tomorrow morning or afternoon, I may reach out at your number above. Do you currently have anything for me to look at (ideally projected numbers and actual homes to walk)?  

@Jeff Wallenius I tried to think of some truly crafty answers about 10 year job growth projections, but the reality is my reasons are not that clever, and more process of elimination.  I grew up nearby, so I think that gives me a leg up on learning and understanding this market.  Have lots of friends and family nearby - people who would drive by and check on things, when and if needed.  Some other markets further South have already risen to where cash flow isn't as strong (as a percentage, excluding any expected appreciation). Some other mid-western markets do not have promising population and job growth, which may threaten rent growth in the future.  Also, I already fly to this area a few times a year, so making those trips deductible and checking on properties seems synergistic.

As always, I appreciate the wisdom of this community and welcome any critique of my thinking or approach.

Thanks!

By the way, I live in a highly cyclical market (Phoenix) that is really heating up in 2017.  That is both exciting and scary.  Plan is to invest in solid cash flow in a much less cyclical market (KC), to build cash flow, and preserve and build equity (secondarily), to be well positioned to buy deep in the next down cycle in my home market of Phoenix.  It appears we are getting late in the cycle (nationally, the HBA Index hit 70, just like 2005) and my primary income is highly correlated to the Phoenix market. 

My strategy doesn't require me to predict the future, which was important to me.  It's having a general awareness with where we are at in the cycle in both a highly cyclical market, as well as a flatter, less cyclical market.  By not having to predict the future, I think my chances of success are greatly improved.  These are just my thoughts, and I would welcome any comments or opposing views.  There are a lot of people here who are both wiser and more experienced than myself.

Thanks all, and Happy Holidays!

Thanks everyone.  I'm a long time listener to the Podcast and have read a number of Forum posts; just decided to jump in and get more involved.  Hoping to locate some great cash flowing properties over the coming months and years!

I appreciate the advice, and know that 1.5% RV Ratio will be difficult to find in good neighborhoods.  As we get later and later in the cycle, I know that buying right becomes even more important.  I've read some positive things about the area of the new Cerner Headquarters at the old Bannister Mall site in KC, MO.  Not sure if I'm too late to that party?  Assuming I'm not, I'm looking for a property manager who works closely with an agent in that area (or provides that service, as well).  There are a number of turnkey condition properties on Zillow in that area, but being a Broker myself, I understand that a good agent and property manager will know things and be able to uncover things that don't show up on a precursory Zillow search.

I will be in the area over the next couple days, and would appreciate any advice or referrals to solid and trustworthy professionals in the area.

Thanks!

Phoenix investor looking to build cash flow portfolio in stable Midwestern city - Kansas City is my current choice. Specifically looking for >1.5% RV ratio, and strong COC returns in decent neighborhoods to diversify my income. Thanks for any help!