All Forum Posts by: Ryan Lloyd

@Milton Chamberlain Thanks for all the great info and reply.  I'm just beginning to build my network in the area and would love to touch base sometime to talk about what's going on with you and how I could possibly help.  I'll shoot you a message.

Just starting out investing in the KCMO area and working on coming up with my criteria for real estate purchases in the area. Below is my first stab at things. Would love to know from others in the area if I'm off base with expecting to find deals like this? Are ya'll seeing the 1% rule met for example or purchasing at 70% ARV etc...

Beds/Baths: 2-3 Bedroom

Size: 700-1900 sqft

Cash Flow: >$100 cash flow

1% guideline (not rule) on rents

• Example: $100,000 purchase price
• $100,000 * .1 = $1,000 minimum rent for property

75% guideline (not rule): ARV * .75 = Max offer minus renovation costs

• Example: $100,000 ARV and $20,000 renovation costs
• $100,000 * .75 = $75,000 - $20,000 = $55,000 maximum price

Bonus: Good area near good schools or hospital

Bonus: Extra square footage to add additional bedroom etc… to add value

Bonus: Unfinished basement or other area for opportunity to add value

Preferred Areas Ranked:

1. Kansas City Northland Area
2. Liberty and Lee’s Summit Area
   1. Liberty Area
   2. Lee’s Summit
3. Midtown and Plaza Area
4. Independence, Raytown and Grandview Area
   1. Independence
   2. Raytown and Grandview

Just starting out investing in the KCMO area and working on coming up with my criteria for real estate purchases in the area. Below is my first stab at things. Would love to know from others in the area if I'm off base with expecting to find deals like this? Are ya'll seeing the 1% rule met for example or purchasing at 70% ARV etc...

Beds/Baths: 2-3 Bedroom

Size: 700-1900 sqft

Cash Flow: >$100 cash flow

1% guideline (not rule) on rents

• Example: $100,000 purchase price
• $100,000 * .1 = $1,000 minimum rent for property

75% guideline (not rule): ARV * .75 = Max offer minus renovation costs

• Example: $100,000 ARV and $20,000 renovation costs
• $100,000 * .75 = $75,000 - $20,000 = $55,000 maximum price

Bonus: Good area near good schools or hospital

Bonus: Extra square footage to add additional bedroom etc… to add value

Bonus: Unfinished basement or other area for opportunity to add value

Preferred Areas Ranked:

1. Kansas City Northland Area
2. Liberty and Lee’s Summit Area
   1. Liberty Area
   2. Lee’s Summit
3. Midtown and Plaza Area
4. Independence, Raytown and Grandview Area
   1. Independence
   2. Raytown and Grandview

@Lien Vuong Loved your example about your partner having more down time at work so does all the administrative roles.  I'm a brand new investor, never partnered and trying to figure out what value I bring. 

I do have a more flexible work schedule to bring to a partner so I would love to hear more about how you structure that partnership.  Exactly what did each of you do?  Did one person bring the capital?  What did both parties do exactly?

It's hard for me to imagine me saying "I have a flexible schedule and so I can do the admin tasks and you bring the capitol" being an attractive arrangement with a partner.  But I'm new to the game so maybe that does work for some.

@Casey Christensen Amazing insights and ideas.  Thank you so much for sharing your knowledge. @Dan Guenther Thanks again, that's a great idea!

@Dan Guenther Thanks so much!  Great suggestions that I will definitely give a try.  I need to go look at the analysis calculators for BP and will.  But in the meantime, are you aware of any specific BP tools built around analyzing specific markets?  

Brand new aspiring real estate investor here.  I am looking to analyze markets for how well they will either cash flow through buy and hold rents AND/OR how well properties are likely to appreciate over time.  Currently focused on single-family or small multi-family properties.  What tools or strategies to folks recommend to begin to analyze various markets?  I'm open to focusing close to home (Northern Utah) or long-distance markets.  Thanks in advance for helping this noob out.