All Forum Posts by: Ryan Stahr

hi all, please give me advice on this case study I'm performing on my own here in the greater Kansas City area. Feel free to comment, criticize, or offer any advice you have.

Property:

rehabbed single family home about twenty minutes outside of Kansas City metro area.

Seller is an investor in the area and has it listed with a local real estate agent with a good reputation and active blog for $77,000.

It is a 4 bed/ 2 bath with new wood floors, remodeled bathrooms, and an overall nice appearance.

It has a 1 car garage.

The agent also does the property management for many of his investors and said he is very confident that they will have the property rented out at $895-$925/month within the next 45 days. I'm always cautious with "he says she says" and wanted to verify this. The average rents in the area ( the data isn't ideal) is around $850 for a 4 bedroom. So his claim is believable, although never certain.

With that information, should I move forward and make an offer? Running the numbers, with a mortgage on $70,000 with around a 5% interest rate, my payment will be around $450 a month, 10% of rent to property management will put me out another $90 or so a month. I'm still looking at potentially $400 of monthly cash flow, which I like for a first property.

Thoughts? Comments? Is it worth going forward and attempting to move to escrow and starting due diligence?

Thanks so much in advance to all!!

@Brandon Turner it's awesome to hear a welcome from you, thanks so much. It's kind of blowing my mind that the guys I listen to on podcasts and read on the blog actually are plugged into the community - so refreshing.

I have read The Ultimate Beginner's Guide to Real Estate Investing "cover to cover" and it's full of some great stuff. That guide and, probably not surprisingly, the article on investing at a young age were two of the first articles I read on BP. I now have the biggerpockets blog as part of my daily routine - I read the headline article every morning after I read the news.

Currently, I've read Rich Dad Poor Dad, The ABC's of Real Estate Investing, and Conspiracy of the Rich and have From 0 to 130 Properties in 3.5 year is waiting for me when I get back from this business trip (Paula Pant's suggestion on your recent podcast). I'm gonna summarize all of them in my blog post once I'm home!

Again, thanks so much for the warm welcome, it makes BP feel less like a forum and more like a true community when you are involved!

Thanks Ali, appreciate the welcome. I actually have your blog Favorited so it's great to put an actual face (even just from a comment) with that website!

Hope the market in California is good. I'm in Sonora for work now and it's beautiful. I wouldn't mind finding an avenue to invest in this state as well!

and just to quickly answer your question - I'm a diehard Vanderbilt fan but I always pull for the SEC in every matchup. Maybe I should adopt some other teams but I just love my Dore's that much.

Again, thanks for the welcome!

Hey BP, great to meet ya finally. I actually joined about a month ago but was confused on how to do this new member intro and actually engage with this great community!

My name is Ryan and I originally hail from Nashville, TN and am now a resident of downtown Kansas City. I started a white collar job for a large corporation here in the midwest right out of college and found BiggerPockets through websearches for ways to make passive income!

A little about me: I graduated from Vanderbilt University in May of 2013 and am a die hard SEC football fan. Everything college sports, actually, gets me really pumped up. I hope to eventually relocate back down south to settle down and enjoy a life of financial freedom.

I grew up with a father who runs his own business and realized recently how much financial freedom he has. I work 12 hour days normally and he is always blowing me up to "do this" or "read that" or "I'm going to start doing contract asphalt jobs!". It actually hit me when he called me to tell me about that idea, while I was at work eating lunch at my desk and he was hanging out with my twin sisters at the mall on a wednesday afternoon, that he has achieved the dream and I want that! which is how I got interested in real estate investing - come to find out he actually also owns a rental property!

Please feel free to contact me and hit me up with any/all opportunities to learn! I am a very hard worker and grew up working as a janitor (for my dad, of course). so if you are a KC investor and need a property cleaned, detailed, or whatever, I'm your guy! Whatever it takes to start great, meaningful relationships with the local veterans.

Also, I started a blog and need book suggestions so please check it out and leave a comment with any books you believe are valuable to a newbie RE investor!

thanks all and Go 'Dores!

I'm hopefully a soon to be new investor, I'm very interested in small multifamily homes, and I've read through the "ultimate beginner's guide" as well as multiple books on the topic of investing. I found out about biggerpockets.com simply through internet research. What a great community! hopefully, I'll be very active over the coming months as I begin to learn and grow as an investor.

So i am curious about how more seasoned investors analyze a certain location. How do you decide, on the grand scale, to invest in an area? are there any common characteristics you seek?

I know some areas can have a certain "reputation" associated with them. Do you consider this in your analysis of a property or do you stick to quantifiable data?

Essentially, I'd love to hear what other investors use as location criteria, from as broad as "I choose Kansas City Metro over Overland Park" to as specific as "I choose 30th street over Troost". how do you make these choices?