All Forum Posts by: Milton Chamberlain

I've been seeing rates in the 7.25-7.8% for investors with good DTI, savings, and good-Great credit scores. This is making it tough for multi families in the KC Metro to have great COC return (Ive been seeing sub 5%)

Single families have (within the past 2 months) become incredibly competitive in the 40-300k price range due to low inventory derived from sellers not wanting to sell bc they can't justify trading in their 2.5-4% rates for 6%+ rates.

I listed a condo 3 months ago for 140k and no one wanted to touch it. It eventually went under contract, however if I listed it today with current market conditions, I am guessing it would sell at 150k. so Condos and 1/2 duplexes are a little wacky right now too. I imagine this buyer demand flash in the pan will settle down again once we get into the fall, just like it did last fall and winter.

Sorry, being long winded here; story short, the areas you will see great cash flow in the KC metro right now Is C market add-value single families, particularly those with unfinished basements. Platte County (Which is the entire NW portion of the KC metro) saw YOY avg sales price increase of 16.6%! Compared with the appreciation of 2-3% (and even depreciation in Jackson county), it whupped everyone else, so I would focus my sight up NE for the time being, looking for add-value single families, and reap some of the equity growth while you're at it. Communities in Platte County are , Riverside, KCMO, Weston and Platte City.

You have to be aggressive and competitive with your offers, but you can find good pro forma cashflow (100-250), good cap rate (7-10%) in this specific buying field...With putting 20% down COC return is tough still. But with cheaper properties (40-175k), you could get 5-10%

Hi Alex,

Please reach out if you would like to connect to further discuss and establish you goals. We should be able to get you on the right track through my buyer's consultation process.

I would pull stats showing the greatest amounts of appreciation YOY and highest average sales price for different regions in the KC metro. Typically speaking, Flip candidates will be in the burbs 10-20 min away from the downtown city center point.

This would include (in order of highest avg price and appreciation (which is around 9-12%); Johnson County KS (Overland Park, Leawood, Shawnee, Merriam, Prairie Village, Mission, Roeland Park,etc) Parkville, Lee's Summits, Blue Springs, Liberty, Northland (Staley and Oak Park HS district in Particular)

That being said, there are many prolific flippers with strong relationships with wholesalers who swoop up anything worth a damn pretty quick.

All of these 'A' markets are often 'fed' by tertiary markets further out in the metro (30-45 min from the city center point) and other desirable markets further out from the metro (OP fed by Spring Hill and Olathe, Liberty fed by Excelsior Springs, Orrick, Richmond, etc, P and then standalone markets of Excelsior Springs, Platte City, Kearney, SMithville, Weston, etc...I am less familiar with standalone cities in the south, but these would include Raymore, Louisburg, Peculiar.

For flips though, its all about purchase price, and most of the wholesale (and a few on MLS) deals that I see that would be good flip candidates due to entry price mostly exist in Independence, Raytown, Gladstone, Grandview.

Areas to avoid are in the city center. The entire City experiences crime, but there are stretches that are desirable. Give me a call if you would like to discuss this more in depth

I second Ernst's statement

Hi Joe,

KC provides a wide variety of investment opportunities with its cultural city point and wide variety of standalone suburbs and (further out) rural farm communities. Lots of options for lots of different strategies.

I also own 3 single families in Columbia MO, which is home to the University of Missouri. I am working on getting MLS access there as well *and working through a proxy investor-minded 'boots ion the ground' family member/realtor there.

Contact me if you would like to go through my investor consultation process

Hi Alicia!

Career education systems is the way to go for getting through the MO exam. I was able to study on my own and pass the KS and National exams, but that MO Exam is TRICKY! so I would highly recommend them for that.

Bob Coleman is an investor and owns an accounting business in OP KS, and hosts a meetup every Tuesday. If you search him on Facebook and follow him, you can see who is going to speak that week.

Frank Lewis is a property manager and hosts a monthly meetup in the Northland as well. And Alex Rico-Chang is a lender and investor, and he frequently hosts meetups. Once again, following them on FB will let you in on any events they are hosting. I unfortunately have never been able to attend any of those due to my schedule, but they look like great networking opportunities.

I honestly do not have any primary experience with wholesaling and Fix n Flips (I invest in buy/holds and generally help those types of investors out) but I am still happy to talk shop with you anytime. Just give me a call/email.

Hi Xzavion,

I've been looking at properties 'boots on the ground' for a few house hackers and investors here within the KC metro recently. Mostly in the northern part of the metro (the 'Northland') KC is a great market, being one of the few major metropolitan hubs with positive rent appreciation over 2022.

Keep in mind that the main intrigue in house hacking is the lower barrier of entry (needing 15-25k versus 60-75 k). It's a great way to get started. You will need that steady job of 2 years in the same field to get financed. And a DSCR loan could work if you qualify with good credit and DTI, but the ones I have seen have had STEEP rates (8%+) with 20% down and less. #'s only really look good if you are putting down a hefty chunk of change, which then defeats the whole concept of house hacking.

3 bed/2+bath per unit is going to have the best/most amount of tenants interested, and the best market/value appreciation will occur in A and B markets. Ive been seeing them at 350-425. Closer to 300 in C markets, but those are quite rare if traditional side by sides and not monster houses.

Plenty of turnkey 2 bed/1+baths in the 200-300 price range in A-C markets.

To cash flow on a turnkey, you will have to rent out a room (350-500/room depending on property quality.

I helped a house hacker buy a turnkey in Liberty around 13 month ago. rates were in the 3's then, so he is sitting pretty. paid 325k (now its market value is around 365k) for 3 bed/2.5 bath in nice area. He caught a nice wave with under priced rents going from 1075--->1450 (Current market rent). 

Once we find him his next place (he rooms with his dad, so his dad is using his FHA for another duplex purchase) they will be cash flowing around 800.

Numbers are tougher to make sense in A and B markets, but I have seen 'sexier' numbers the more you are willing to go on the 'outskirts' of the metro (20-25 miles from city center point;Platte City, Raymore, Olathe, Kearney, etc)

Feel free to hit me up if you want to talk more about the intricacies of your goals

happy to talk. call anytime.

Hi Joe,

Happy to talk. Reach out anytime.

Hi Derek, I own 3 single family long holds there, and have some referrals I could throw your way (lenders and contractors). Give me a call if you would like to talk about it.