All Forum Posts by: Milton Chamberlain

Hi David!

I am from Columbia, and own 3 single family investments there. I plan to purchase two more there in the coming year.

I do not work in Columbia (I live in KC) but I have connected buyers with some great agents in that area. Last year my preferred agent put a friend of mine into a triplex, and another friend of mine's son into a duplex (to live in while the son goes to Mizzou).

If you want to chat, hit me up! Columbia's MLS data is locked up pretty tight, but on zillow I do see that there is a multifamily coming on in a qualified zone that allows you access to dramatically lower rates through a government program. seems like this could potentially be a good opportunity.

I recently helped a buyer use one here, and without the program her rate would have been in the 5.5-6% range, but with the program her rate was 3.25% (30 year FHA)

message me if you would like to discuss your goals more.

@Mike D'Arrigo Yeah. I typically only work with local investors.

On a side note, I just moved a good friend of mine to that exact neighborhood with her son.  Right by Center elementary...7 min drive to her mom's house in Leawood, super convenient for her. I tracked down an FFIEC loan (it is super neat for owner occupant buyers, this was right when rates had hit 6%, and the program gave her a 3.25% 30 year conventional rate! Here is the website if anyone is interested in looking up targeted areas: https://geomap.ffiec.gov/FFIEC...)

Actually, for any local Kansas City investors looking to house hack into a multi family using 3.5% down, and who would like to take advantage of this FFIEC program, there was a well priced duplex in a targeted area in Grandview that looked to be in turnkey condition. Lenders have confirmed with me that this program works for up to two units. pretty neat!

In my market of the Kansas City metro, there are 309 single family homes for sale between 50-100. I consider the entire metro to be around 2000-2500 square miles (depending on where you would draw the line of being within the 'metro')

around 1/3 of these 309 homes exist with a 30 square mile zone, specifically East of Troost (a street in KC) in what I would consider to be the urban core.

As you can imagine, as we get closer to the 50 end of the range, these homes generally will always need significant repairs to make rent ready. But on the other end at 100, you can generally find some turnkey properties that you could immediately rent out for $1000+. Keep in mind that this area presents certain obstacles to investors, so it's not all cake; no such thing as a free lunch. But if you do it right, plenty of people make money investing there.

it's good to look at what I call the 'green zones.' these are areas that butt up to highly desirable neighborhoods. (the city of KC is very block by block...in a green zone, you can take an identical home, but move it .5 miles east or west, and get a 50-100k price difference). an example of a home that I would consider to be in a green zone is at 1928 E 81st Terrace, Kansas City, MO 64132 (if you want to zillow it), this is a good example of a property I would consider to be worth checking out...I would guess their is some underlying issue with it being listed for 75 with a tenant in place at 925, but still, with taxes only being 362, and being right on the edge of the highly sought after Waldo neighborhood, by the numbers seems like a good deal.

There are plenty of other great homes to find for 50-100 in the KC metro, but generally speaking they on the outskirts of the metro, and the market rents will not justify the purchase price.

Frank Lewis with RPMP has a great reputation

Comps don’t lie. So I always go off of ‘SOLD’ comps and rental comps. People will overlook a lot for location. So although things like school ratings, crime rates, sex offender registry’s, etc would often time impact where someone will buy/rent property, sometimes people will overlook those things bc of other factors they consider more important (generally location).

I pull sold data through a variety of software to analyze accurate ARV or for estimating appraisals.
my method for determining rent comps is pretty basic. I simply Call up active rental listings in the area and ask what the rent is for a comparable property, 
or look at rental websites for Similar properties close to the subject property.

If you ever shift to the KC market I would love to chat!

Frank Lewis with Real Property solutions is great. You can find his contact by googling. He host the NKC investor meetup and has a wealth of knowledge. Good solid tenant placement processes. He boasts never having had to evict a tenant he placed.

the further from the heart of the metro, the cheaper the property values get and the cap rate and cash flow are better (particularly in the North of the Metro)

You can still find some well priced properties in the Raytown area that make sense as a buy/hold. But good deals pop up all over the place. It has become slightly less competitive for buyers, with the rates increasing to the mid 5's-6 for 30 year rates

Hi Ezekiel!

It can be hard to tell where to start! if you ever want to chat about your goals and how that could tie into certain paths of Real Estate investing, give me a call! It's a fun subject to explore and dive in to!

https://www.rpmprinciples.com/...

Frank Lewis host the Northland Investment meetup. He is great.