All Forum Posts by: Nicholas Giordano

Hey Ayad... i do realize this post is 2 years old but I am currently located in NY and interested in potentially investing in the KC area. I am mostly interested in Cash Flow perferably through multi family properties... i have about 75k to invest and am willing to take moderate risk.... would love to hear back from you ! 

@Ejy Mirjan, as JJ said, the KC market is a big area with lots of possibilities.  You need formulate your investment strategy and goals before you do anything else as this will help you determine what areas in KC you want to look for properties.

You have already established that you want rental property, so here are a few more questions to ask yourself:

1 Do you want SFR (single family residential), multi family, or commercial (commercial tenants)?

2 How much money do you have to invest and how much money can you borrow (if you want more money)?

3 Are you more interested in cash flow or long term equity?

4 How much risk do you want to take?  This is probably the hardest question for most investors to answer.  We all want the best returns, but with high returns usually comes higher risks.  You need to determine if you are a big risk taker or a little risk taker.  Think about your financial situation when you answer this question.  Do you have the financial means to recover if your investment is a bust?  Do you need income from your rental properties to pay your bills?  Are you simply looking for a way to reduce your taxes?  

If you can answer these questions, I can better tell you what areas of Kansas City you need to be looking at.

Hey @Nicholas Giordano I agree with @Mike D'Arrigo. I'm from Queens + work in White Plains and for a long time I couldn't decide where to invest. I've looked all over the country for a city that I could invest long term in and Kansas City & Indianapolis definitely came up on the top, especially if you're looking for more stable cash flow. I pulled the trigger last month and purchased my first SFR and I've been under budget in almost every aspect in expenses and estimates and with that my Cash flow & ROI are increasing. Contrary to your statement, I believe those two cities are exactly what you're looking for in terms of cash flow.

Hope you find the motivation to take the leap, I know I was as impatient as you were 5 months ago but, do your own research and a lot of it..then figure out what fits your investment goals.

I am with Larry T. There are plenty of great deals In rochester area. For 50K you can buy a decent 2-3 family with positive cash flow and great cash on cash return.
I looked into Albany market over the summer and the prices are grossly overpriced .... just my opinion. I guess I am spoiled with cap rates in double digits. Good luck!

@Nicholas Giordano

Our area can be pretty tough to find that deal that cashflows great. I have the one 2 family here, 2 single family rentals in Pa, and I'm on the 4th flip in Pa as well. Peekskill may be a bit slower than the Bronx and lower Westchester, but it's still a bit similar. Is your goal for this to be pure investment or will you be living in one side? The best deals have been cash bought because you need to solve a problem like take on tenants, violations, extensive work, etc... anything that's move-in ready is high competition in this market. Westchester taxes are a killer, and if you want cash flow you should shoot for a 3+ unit. That extra unit can be all the difference. 

@Nicholas Giordano

Congrats on getting into your 1st real estate deal. Where in Westchester is this 2 family? While I respect everyone's opinion about investing out of area(I, myself do flips in PA), but our markets appreciate a lot more than those areas. For example I bought a 2 family in December 2013 at 400k and it is easily worth now 550k. Maybe even a bit more. When you did your numbers, how much do you cashflow? Also is there any value add? Can there be a development play down the line? Is your goal immediate cashflow or long term value or both? 

With this property you mentioned I did quick numbers and it seems like you'd cashflow about -$55.11 a month. You would have to do your own property management to cash flow a little over $200 a month. 

Rental Income: $3200

PITI: -$2419.11 - with 20% Down

Vacancy 5%: -$160

Cap Ex 5%: -$160

Repairs 5%: -$160

Property Management 8%: -$256

Water: -$100

Cash Flow: = -$55.11 

Good Luck!!!!