re investment news - may 2017
TRANSCRIPT
investGREATER KANSAS C ITY METRO AREA
S INGLE FAM ILY REAL ESTATE
LIVING
KC METROTHE MAP
KANSAS CITY
INDUSTRY
IN KCLEARN THE MAJOR
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contents
2017
Sample Properties starting
Page 30
Case Studies
Major Businesses
A brief look at Multi-Family
Industry 18
Other Sectors 20
Why Kansas City
Building Your Team
Living 12
Service Providers 24
The Major Areas
The Map 4
Cover and Photo to the left from VisitKC.com
North of the river from downtown Kansas City,
Clay County is one of the fast growing regions in
the metro area. Typically referred to as the
Northland. Here you will find not only the metros
major amusement parks Worlds and Oceans of
fund, but also the Ford Assembly Plant were they
buld the F150 and the Chevy Plant where they
build the Malibu.
CLAY COUNTY
The second most poplous county in Missouri
and is the metro area's center of population.
Home to THE "Kansas City" Missouri, the city
most refer when they say "Kansas City". We
can break Jackson County Down into Kansas
City on the west side and then eastern Jackson
County.
Kansas City Missouri is made of of the
Northland in Clay County, Downtown on the
west just south of the river and including the
Plaza, Historic North East or the North End,
Midtown with Hyde Park, Brookside and Waldo,
our long neglected Urban Core and last South
Kansas City that blends in the the parts of the
Grandview Communities.
Eastern Jackson County is made up of
Independence, Raytown, Blue Springs and
Lee's Summit. Independence and Raytown are
going to be your blue collar areas along with
parts of Blue Springs and Lee's Summit and
other areas of Raytowns are going to be
Suburbs as the come with newer communities
and better schools.
JACKSON COUNTY
the Map
With just 3 cities, Kansas City (Kansas), Bonner
Springs and Edwardsville. Has a broad economic
base in transportation, manufacturing, government
and tourism. Home to numerous tourist
destinations including NASCAR races, world class
soccer, detination shopping at Village West plus
the University of Kansas Hospital.
WYANDOTTE COUNTY
The major metro suburb of the metro. Nationally
recognized for supurb schools and shopping. One
of the most prosperous suburban areas in the US.
A healthy business climate, strong quality of life,
outstanding education system and abundant job
opportunities continue to attract newcomers and
keep residents from leaving.
JOHNSON COUNTY
North of the Missouri River along Interstate 29 and
home to the Kansas City International Airport.
Scattered through out are office parks, industrial parks,
shopping centers and hotels. Becuase the
communities are spread out and many maintain their
small town feel, you can get away from the city to
spend a day in Parkville or Weston and feel you have
stepped gone on vacation.
PLATTE COUNTY
KANSAS CITY | 05
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REGIONS
MAREI.ORG | 08
South Kansas City is an area that runs along I-49
(formerly known as 71 Highway) from just south of
85th Street in Kansas City Missouri South to the
Belton Raymore exit. This area is booming with
major development over the past 5 to 10 years and
is continuing to grow. The opening of the
Honeywell Federal Manufacturing Plant to the
south end of this area has a 10 year plan of
continued growth and new jobs. The Cerner
Corporations Three Trails Campus at the former
Bannister Mall Site is growing not only jobs for the
Health Care industry, but more jobs in the hotels
and shops planned for the region. In addition there
has been a large phenomenon in the Grandview
area of South KC called IHOP - the International
House of Prayer that started revitalization of vacant
commercial buildings and their university brought
in a lot of new tenants and parents buying houses
for their children. Of late we have also seen major
money spent in Grandview of redevelopment of
shopping centers.
Mid-Town, made up of the Plaza Area, Hyde Park,
Westport, Brookside and Waldo are also booming.
the old stately houses have been snapped up for
years by folks who want to restore them to their
former glory. There are also smaller houses for
rentals as well as small, medium and large multi
family. These areas are close to all the in places
downtown and have easy highway access to
anywhere in the metro area.
The Urban Core is also always a place where a lot
of out of state investment dollars are spent,
however this area is not for the novice investor.
This area does have good pockets and a lot of
blighted areas. Of late there has been a major
influx of investment and redevelopment ike at 27th
Street and Troost where new aparments and grocer
are planned or a few of the targeted areas, which
still leaves large portions of the urban core
forgotten and neglected. Due Dilligence and a
good team area must to invest in this area of KC.
Downtown Kansas City has a few up an comming
neighborhoods like Columbus Park, the River
Market and the Crossroads mixed in among the old
and the new commercial buildings. The
redevelopment of Union Station many years ago
sparked new buildings from the Postal Service the
Kansas City Star and our Performing Arts Building.
Plus everywhere you look are cranes and
construction of new aparments and redevelopment
of old buildings into lofts.
KU Med Area is the University of Kansas Medical
Center, which is actually in Kansas, however it sits
right on the state line and offers opportunities in
both Kansas City Kansas and in Kansas City
Missouri. While this area offers great opportunity
for rentals for medical students and staff, it also
offers an opportunity for a totally new way of
investing, short term and nightly.
Short Term and Nighly Rentals have seen an
increase in both our Downtown, Mid-Town and KU
Med areas as people are looking for a place to stay
during a sporting event at the Sprint Center like the
recent Basketball Championships and all the World
Series Games a few years ago. Around the Med
Center, visiting Doctors and Instructors or families
wanting to be near patients are also filling up short
term rental spaces.
Northland encompases just about all areas north of
the Missouri River and include North Kansas City,
Gladstone and Claycomo. This area has always
been a good market for rental and for flips due to
not only the Ford and Chevy plants, but also due
the fact that the city of Kansas City Missouri
requires their employees and officials to live in the
city. The portion of Kansas City that is in the
northland has better schools, better amenities like
grocery stores and entertainment areas, and has
always atracted the city workers. These are good
solid suburban working class neighborhoods that
are excellent areas to not only hold for rentals but
also for fix and flip.
There we have it, over a page and a half, only on
Kansas City Missouri, we do want to take a look at a
few of the other areas.
Independence, Raytown and Grandview are all
south of the river and border Kansas City or in the
case of Raytown, seems to split Kansas City
Missouri in two. Grandview has seen a lot of
growth of late as already mentioned.
Independence and Raytown are older suburbs with
not a whole heck of alot exciting going on, but
because of their proximity to other areas they offer
a good solid supporting role to the rest of the area
and offers good solid rental neighborhoods.
Johnson County is a whole other world where you
can pretty much be assured that in the areas where
homes are under $150,000 that you have good
opportunity for rentals and flips. Get an area over
$200,000 and you will be hard pressed to find a
house to fix and flip, the competition will be fierce
but if you can get the deal and make the numbers
work, you will be looking at a home run. You will
find that Blue Springs and Lees' Summit in Jackson
County and Raymore and Belton in Cass are very
similar to Johnson County, just not quite as
populated.
Kansas City, Kansas is quite often overlooked. We
look to the KU Med Center area on the east and the
Village West and Sporting Venues on the west,
leaving much of the city open for opportunity.
KANSAS CITY | 09
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KANSAS CITY | 09
LIVING
The Kansas City Metro, what makes it a good place to invest
our money?
Overall, the Kansas City Metro has considerable advantages.
Low cost of living. Housing is affordable and considerable
space to build more new or revitalized the old stuff. The
highway system is for the most part adequate and well
maintained, making commutes to and from fairly easy from
anywhere in the metro. Most of our cities have good public
schools, but not all, so please do your homework here. And
last we have fairly low crime rates, but again, not all of our
cities do.
The experts tell us to dig a little bit deeper, so let’s take a look
some basic real estate factors:
Housing Prices: Let’s face it, many people turn to Kansas
City as a place for their real estate investing dollars because
the median price for a house is just around $175,000 to
$180,000. Some areas of the metro are less and some are
more. Add it all up and you get affordable housing,
something that investors can’t necessarily find in their own
back yard in some areas of the United States.
Sales Statistics: Most likely the person reading this is
WHY INVEST IN THE KANSAS CITY METRO
Photos from VisitKC.com. Above after Royals win
the World Series at Union Station. Below tailgating
at Arrowhead and Game day at Sprint Center.
MAREI.ORG | 12
considering Kansas City as a market for a long term
buy and hold. They are buying to get cash flow
now, cash flow in the future, but at some point the
property will need to be sold. Hopefully that sale
will be a long time down the road, but what if
circumstances change and the house needs to be
sold? You need to be in a market where you can get
a reasonable sale price on the home.
Review sales stats to find that, for the most, there
are part no huge upswings or downswings in price.
Even in the Great Recession, most neighborhoods
did not see huge price losses, on a whole they held
their value. Yes, the overall median price did drop,
but that was a factor of the bank foreclosures on
the market and less of a factor of the average home
and rehabbed home dropping in price.
Next we are told to spend some time reviewing
trends in month supply of inventory, time on market
and asking price vs sales price.
Vacancy Rates: Finding the rental vacancy rate in
the Kansas City Metro is a bit tough as it’s not
something easily measured or even reported.
Fannie Mae reports the Vacancy Rate was
declining to 4.75% as of Q1 2016. An April 2015
report from HUD shows an estimated vacancy rate
of 7.5% which was a marked improvement from the
11.7% in 2010. So, while these numbers may not
be entirely accurate, we do see our vacancy rates
are getting smaller and much less than the US
average of 6.9% for Q4 of 2016. Here in Kansas City
we really don’t have to look at the statistics, just
drive around and see all the apartment houses
being built across the metro, from the down town,
to the urban core, to the suburbs.
Time on Market: In the Kansas City metro the time
on the market overall has not changed much over
the past year. In March 0f 2016 days on market
was 69 for existing homes and this year it 57, note
those numbers dip even lower in our peak selling
months of June and July. For new homes, we see
similar numbers of 125 days on market last March
and 132 this March and the low of 90s in December
and January, the two worst months for building
houses in the Kansas City Metro.
This all adds up to an average of 1.8 months supply
of existing homes available in Kansas City and a 5.3
months supply for new homes. With only a 1.8
month supply of houses the investor in Kansas City
needs to work hard to find the great deals and have
the cash ready to go to buy fast. This seems to be
the trend all over the country.
Rent-to-Value Ratio: The experts tell us that as a
general rule monthly rents should be at least 1% of
the property value. If you buy a property for
$250,000, your rent needs to be at minimum
$2,500 a month. If we look at the metro’s overall
Median price on Existing Homes of $167,500 of all
houses and Zillow’s reported rent of $1249, we see
that we are pretty close to that 1%. And if we were
to eliminate the high end, non-rental houses we
would see numbers similar to these three bedroom
houses that are listed for sale, do a bit of
negotiating and rent for a bit more than average
rent and you are well over that 1%:
Area Price Rent Ratio
Gladstone $124,000 $1,130 0.91 %
Raytown $ 70,000 $ 950 1.35%
Blue Springs $119,900 $1,150 0.95%
Waldo Area $119,500 $1,050 0.87%
Urban Core $ 59,900 $ 800 1.33%
Ratio of Owner Occupied to Rental Properties:
One expert that was consulted in the writing of this
article would have you believe that the higher
number of rental units to owner occupied house
would be a good thing. However, you need a good
balance.
If you are in an area where all the houses are owner
KANSAS CITY | 13
occupied, well that is either because it is against
the home owner association covenants, in which
case you could not offer a house for rent in that
area anyway. You will find that newer suburban
areas with home owner associations fit this
example.
Conversely if you are in an area where almost every
house is either a rental house or vacant, will be
able to keep it rented? You may find that the pride
of ownership in the overall area is less, they will
attract a lower quality of tenant, and you may
struggle to keep the property cash flowing and
because every house is either a rental or vacant, no
one really seems to care when the house next door
gets vandalized. Houses in this type of
area are much harder to manage, the cash flow
numbers look amazing on paper, but don’t typically
factor in the vandalism number. This is our urban
core areas. And while you can make good money
in these areas, you need to have a stellar property
manager to keep them full and cash flowing.
Instead look for an area that has a good mix of
owner occupied houses and rental houses. This is
going to be in our older suburban areas, like
Gladstone, Raytown, Independence, South Kansas
City, Midtown and older areas of Overland Park and
other Johnson County KS neighborhoods or in
multi-family communities where everyone is a
renter.
From just a Real Estate Analysis look, the Kansas
City Metro seems to make sense financially, houses
are affordable, they will cash flow and if you must
sell them, you can. Next, you should research the
economic factors, the factors that the people living
in the community review before moving to a city.
Population: What is the population of the area and
is it getting bigger or is it getting smaller? You can
dig deep into US Census Bureau data on
population growth in the Kansas City Metro area
and find that overall, the population in the Suburbs
on both the Kansas and the Missouri Side have
been growing since the beginning of time, we see
no contractions. However, if we look at just Kansas
City Missouri, the old part of the city where it all
started, that the population was rising ever so
slightly till about 1970 and then it started
decliningsharply for about 15 years as everyone
fled to the suburbs from the downtown and urban
core areas. Then in about 1985 it leveled off and
about 1995 it started going back up as the old
downtown buildings were revitalized and some of
the Midtown areas started to see the big houses
being restored back to their original stately beauty
from the multi-family housing they had been
chopped up into back earlier in the century.
Economy: Is the economy diverse or does it
depend on just one industry, like for example
Detroit? In the Kansas City metro you will find that
we have a lot of industry. Being in the middle of
the country we have transportation and distribution
jobs. Being in the Midwest, gives us farming and
agricultural jobs. Kansas City is home to a Ford
Plant, a Chevy Plant and a Harley Plant. Being a
healthcare and technology hub, Kansas City has
even been dubbed the Silicon Prairie.
A quick Google search will tell you that trade,
transportation and utilities are our biggest
employers in the region. Government is second
followed by professional and business services. No
matter what type of job a person desires, they can
probably find it here in the Kansas City Metro Area.
Wages and Unemployment: These go hand in
hand. Is employment going up and are wages
keeping up?. If we look to unemployment rates, we
see over all about a 4.5% across the metro as
of January 2017 vs about 4.9% for the US as a
whole. The median household income in Kansas
City grew 6 percent between 2014 and 2015
according to the recent census data. Adjusted for
MAREI.ORG | 14
inflation, our metro median income grew from
$57,062 to $60,502. January 2017 was about 4.9%
for the US as a whole. The median household
income in Kansas City grew 6 percent between
2014 and 2015 according to the recent census
data. Adjusted for inflation, our metro median
income grew from $57,062 to $60,502.
One area of the metro that was lacking in jobs in
jobs was and still is our urban core. We just don't
see a lot of industrial, offices, retail or services in
our urban core. But we do have an excellent
highway system for those with cars, an adequate
bus system for those that do not to get the people
to the jobs Downtown and in the Suburbs. And the
new starter Street car line is expected to grow and
slowly but surely we are seeing redevelopment and
job growth on the edges of our urban core.
Overall the Kansas City Metro has a rising
population and is growing, it has a very diverse job
market to keep the economy balanced with no big
swings. Overall folks are sticking around and even
moving to the metro for jobs as our cost of living is
so reasonable, our commutes to work are easy and
wages are competitive.
The next factor most investors look at are
regulatory factors that affect the hard to control
numbers when you look at the profitability of the
rental property. Things like property tax rates,
property insurance rates, licensing fees, landlord
tenant law when it comes to eviction for example
and over all how the local cities view and treat
landlords.
You can look at all the real estate taxes and
insurance rates and find them reasonable. As with
any location the more services the metro offers, the
higher the taxes. In general taxes are going to be
higher in Johnson County and Lee’s Summit and
lowest in the urban cores. Conversely the safer
area and the newer the housing stock, the lower
your insurance rates.
Evictions: In the Kansas City Metro we find that the
Landlord Tenant law is very similar on both sides.
Although an eviction is going to take you just a bit
longer in Kansas. And overall, it might cost you on
somewhere around $500 or less. Just be sure
when you do need to evict someone you are
working with an attorney that specializes in
eviction so they know the right judge and court to
file in and because the bigger firms tend to get
cases in front of the judge faster.
Foreclosure Laws: Fot really a big factor for
landlords, but please note that MO foreclosures
take a little over 3 months, KS a bit longer and in KS
there are redemption rights of 3 months to a year.
Local Rules: We seem to have more registration
and licensing of rental houses on the Kansas Side
and more regulation of the construction trade. The
Missouri side seems poised to catch up. Be sure to
ask about licensing and registration when you buy.
Overall the Kansas City Metro is a great place for
your investment dollars. But as with any metro, you
will want to evaluate the individual markets within
the metro and look at all the same factors
discussed in this artcile and also things like
neighborhood safety, quality of schools, access to
transportation, proximity to shopping and
recreation, all factors that will affect the desirability
of your rental property or your flip property.
We know you will want to dig into the data, so we
have created a special page just for you that can be
found at www.MAREI.org/WhyKansasCity, we have
posted all the resources we have used to create
this report.
KANSAS CITY | 15
INDUSTRY
American
Century
Investments
Plaza
Bernstein-Rein
Advertising
Firm
Downtown
Black & Veatch
Engineering
Power & Water
Overland Park
Burns &
McDonnell
Engineering
Kansas City, MO
Busnell
Corporation
Optics
Overland Park
Cerner
Corporation
Health
Information
Technology
Chevy Malibu
Manufactured
Here
Northland
Dawn
Dish Soap
Made Here
Kansas City, KS
YOU KNOW
MAREI.ORG | 18
Ford Escape &
F150 Made
Here
Northland
Garmin
GPS
Technology
Lenexa, KS
Hallmark
Downtown
Hostess
BrandsHostess
Brands
Kansas City, MO
Russell
Stover
Downtown
Sprint
Cell Phones
Overland Park
Knorr & Lipton
Soups & Mixes
Made Here
Independence
YRC
World Wide
Overland Park
KANSAS CITY | 19
OTHERKANSAS CITY METRO REAL ESTATE
Apartment Complexes: A look back at 2016 saw
vacancy rates hit historic lows at around 4.8%.
With the economy improving from the great
recession, many Millennials who has been stuck
living with family and friends continued moving
out and seeking urban living as they have all
found jobs. This demand has seen not only a
demand for housing in rentals and sales, but
huge demand for rental property across the
metro.
This demand for rental property has pushed rent
rates in the multi-family sector up by 3% in 2016
and saw over 3,000 new units added to the
market across the metro. And in South Kansas
City as the Cerner Development at Three Trails
continues as well as Development along the I-49
corridor to the south, demand for Class C Rentals
across the southern area has grown.Apartment
Complexes.
Rents averaged about $925 a month in Cass A
properties and around $675 a month in Class b
and C. Rents were the highest near the Country
Club Plaza with averages around $1,140 and then
next in Downtown and South Kansas City with
rents in both locations over $1,000 a month.
The predictions for 2017 show that Rents are still
at an all-time high and should remain stable.
Construction that is currently started should be
completed over 2017 and 2018, but the experts
don’t expect a lot of new development to start as
we may need a couple of years to absorb all the
new projects that came online.
Office Market: The Kansas City Office Market
had a strong 2016 with Vacancy rates down to
about 9.6%, Adsorption Rates Up, Construction
Flat and Rental Rates Up with Average Asking
Rents at $17.80 per square foot. Much of the
office market activity focused around the South
Kansas City Missouri and south Johnson County
Kansas markets. We often see companies
swapping states as new incentive packages get
tossed at them to move.
Retail Market:The Retail Vacancy rate in the
Metro KC market increased to 6.3% during the
fourth quarter of 2016, and the overall market has
tightened. The average quoted rental rate stood
at $12.89/SF, up from last year. With decreasing
vacancy rates, and substantial net adsorption and
increasing rental rates, the metro Kansas City
retail market is well-positioned going into 2017.
MAREI.ORG | 20
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KANSAS CITY | 21
MARKET UPDTATE march 2017
3,132homes sold
1.1% Increase over 2016
65average days on
market12.2 % Decrease from 2016
96.4% of asking price0.6% Increase over 2016
$17k$16,825 average
sale price
increase from
same time last
year (8.4%)
4,257pending sales4.0% Increase over 2016
6,748houses for sale 21.9% decrease
2.1 month supply
average: $217,014
median: $180,000
Closed Sales decreased 0.7 percent for existing homes but increased 19.0 percent for new
homes. Pending Sales increased 5.8 percent for existing homes but decreased 9.5 percent for new homes. Inventory decreased 28.4 percent for existing homes but increased 9.1 percent for new homes. The Median Sales Price was up 6.7 percent to $167,500 for existing homes but decreased 0.3 percent to $323,950 for new homes. Days on Market decreased 17.4 percent for existing homes but increased 5.6 percent for new homes. Supply decreased 30.8 percent for existing homes and 1.9 percent for new homes.
The U.S. economy has improved for several quarters in a row, which has helped wage growth
and retail consumption increase in year-over-year comparisons. Couple that with an
unemployment rate that has been holding steady or dropping both nationally and in many
localities, and consumer confidence is on the rise. As the economy improves, home sales tend
to go up. It isn't much more complex than that right now. Rising mortgage rates could slow
growth eventually, but rate increases should be thought of as little more than a byproduct of a
stronger economy and stronger demand.
For further detail see http://www.kcrar.com/statistics
AUCTION.COM
Foreclosure Properties Auction .com
ACCURATE TITLEA Full Service Title Company David Green www .AccurateTitleCo .com 913-338-0100
ALPHA TITLEFull Service Title Company Patsy Archer www .AlphaTitleLLC .net 913-498-8999
BRIDGE TURN KEY INVESTMENTSKansas City Based Turn Key Real Estate Company "Building Wealth and Freedom Through Real Estate Nathan Brooks www .BridgeTurnKey .com 913-276-4114
ANDERSON & ASSOCIATESLaw Firm Julie Anderson www .MOKCLawcom 816-931-2207 / 913-262-2207
CONTINENTAL TITLEA Full Service TitleCompany Sharon Bower www .CTitle .com 913-338-3232
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know your business. Who can solve problems as they arise to help you
get the deal completed on time and for maximum profit.
MAREI.ORG | 24
HEARTH MASTERSChimney & Fireplace Restoration Mage & Gene Padgitt www .ChimKC .com 816-461-3665
HOME RENTAL SERVICESKansas City Property Management Sandy Fisher or Paul Branton www .Home4Rent .com 913-469-6633
CROSSROADS INVESTMENT LENDINGInvestor Lending Britton Asbell and Doug Harriswww .KCLend .com 913-766-2900
DISCOVER HVACHeating & Airconditioning Complete System for $2785 www .DiscoverHVAC .net 816-500-2900
HOME DEPOT2% Rebate on all Purchases Christine Putman PRO Account Rep 816-377-9534 Sharon Beck PPO Account Rep 913-313-8912
EAGLE HOME MORTGAGEBeth Langston , Loan Officer https ://bethlangston .eaglehm .com Office : 816-600-4170 Cell : 816-679-4000
11 CAPITAL FINANCERyan O 'Mara www .11CapitalFinance .com/MAREI
INVESTORS CHOICE FUNDINGThe Flexible Funding Solution L . Scott Ficinus www .InvestorsChoiceFunding .com 816-668-7223
GREEN HOME SOLUTIONSSoulutions for Mold and Odor , Naturally Terry Amerine & Erich Amerine www .GHSofKC .com 1 .800 .SOLUTIONS
JAMIESON HOME TEAMRealtor & Property Management Kevin Jamieson www .KevinJamieson .YourKWAgent .com 913-384-8331
KANSAS CITY | 25
MERCHANTS MORTGAGEReal Estate Finance Company Susan Aubin www .MerchantsMtg .com 720-554-9480
NATIONAL REIA UOnline Training Professional Housing Provider Credits www .NationalREIAU .com
KC CABINET COLLECTIONCabinet Source Mark Yanda www .CarriageHouseCabiinet .com 913-980-4260
KC GROUT WORKSDJ Hoffman www .KCGroutWorks .com 816-448-5579
MIDATLANTIC IRASelf Directed IRAs & Tax Strategies David Lang www .MidAtlanticIRA .com 800-607-0145 Main Office Cell 816-590-6345
KC INVESTInvestment Property Seller Kim Tucker www .KCInvest .com 913-735-0018
KCMO HOME BUYERProperty Buyer Don Tucker www .kcmoHomeBuyer .com 816-200-2198
NULOOK CUSTOM FINISHESDon 't Replace Refinish www .NuLookFinishes .net 913-385-2574
MCKINNNIS REAL ESTATETurn Key Provider Nick McKinnis www .McKinnisRealEstateInvestments .com 816-914-2614
OFFICE DEPOT OFFICE MAXOffering Discounts in store and online for members of MAREI . Discount information can be found in the Member Benefits Guide and the Member Library
MAREI.ORG | 26
REALTY RESOURCEAnd Realty Resource LOZ Real Estate Brokerage Scott Tucker www .RealtyResourceKC .com 816-406-0701
RENTALS.COMAdvertise Your Rental Properties Discounts for Members www .Rentals .com
PAT LIVEProfessionally Answered Telephones Free Trial & Discounts www .MAREI .org/PatLive
PRIDE PROPERTIESReal Estate Professionals Marcus and Matt Bray www .PrideProperties .com 913-213-5370
RENT PERFECTTenant Screening , Leases & Insurance www .RentPerfect .com Disount subscription to member of MAREI . Deiscount link in the MAREI Member Benefit Guide .
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ROYAL GATE MANAGEMENTRyan Goyer www .RoyalGateManagement .com 913-735-3279
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YOUR LISTING POSTED HEREBecome a business member today , only $499 annually .
KANSAS CITY | 27
WinVestor's
Hosted by Brian & Michelle Winberry
Wednesday Mornings at 9 am
Lucky Brewgrill
5401 Johnson Drive, Mission
1st Saturdays
Hosted by Jim & Beth Kasper
1st Saturday of the Month 9 am
Networking Coffee / Denny's
9001 Shawnee Mission Pkwy, Mission
Landlords of Johnson County
First Wednesday of the Month
Matt Ross Community Center
8101 Marty, Overland Park, KS
Cass County Landlords
3rd Tuesday of the Month
Carnegie Village
103 Bernard Drive, Belton
Landlord Inc of KCK
3rd Tuesday of the Month
Loan Star Steak House
1501 Village West, KCK
Blue Springs Real Estate Investors
3rd Thursday of the Month
Perkins
3939 S Bolger, Rd, Independence
Landlords Inc.
4th Tuesday of the Month
Central United Methodist Church
5144 Oak Street, KCMO
Landlords of EJC
4th Thursday of the Month
Allen's Banquet Hall
11330 E Truman Rd
Independence, MO
Jackson County Real Estate Investors
Last Wednesday of the Month
4 West Monroe Street
Buckner, Missouri
MAY MTGFROM OTHER GROUPS >
MARE I . ORG / CA L ENDAR
THE CALENDAR
See full day workshop
page 5
REHABBING IN KC
BONUS DAY APARTMENT INVESTING“Why not take the time and energy you’re putting into finding,
negotiating, and buying a single family home and buy a 10 unit
instead? Or a 50 unit?” Join us to learn how to get started investing
in Aparments in Kansas City even if you have never done a single
deal. Instructor Anthony Chara is holding 1 of his 4 day bootcamps
in Kansas City.
Kansas Ciity Bootcamp in the KC Metro on Thursday, Friday,
Saturday and Sunday, June 1, 2, 3, & 4th. You can purchase as part of
his Apartment Investing Package offered at MAREI - see
MAREI.org/AptBC for complete details.
Whether you are wholesaling a house, rehabbing a house or buying a
house to hold you need to know and understand a few basic building
and permitting rules that can save you $1000's if you know about them
in advance or can cost you big if you miss them in the analysis.
At the May 9th MAREI meeting, General Contractor, Rehabber,
and Real Estate Investor Robert Massey is joing us to go over
the Top Ten Screw Ups Investors Make when they
invest in a property.
This is a must attend for landlords and rehabbers,
wholesalers and anyone who ever intends to own a
property. See MAREI.org for more details.
MARKETING IN KCJUNE MTG
We all want more deals and right now in KC finding a hot deal on MLS
or online is tough. So we need to find a way to get the motivated
sellers to call us and that does not happen without marketing.
At the June 12th MAREI meeting, the nation's leading expert on
direct mail and other marketing tactics for real estate investors,
Kathey Kennebrook, will be joining us to teach us her top
Marketing Strategies. that drives in motivated sellers by the
herds begging her to buy their properties.
This is a must attend for anyone wanting to get a good deal.
Remember monthly meetings are from 6 to 9pm at the Holiday Inn at 8787 Reeder Road,
Overland Park, KS. Netorking from 6 to 7, Presentation 7 to 9pm. MAREI Members & First Time
Guests who Pre-Register at MAREI.org attend free - all others py $25 at the door or $15 online.
MAREI.ORG | 28
REHABBING MISTAKES
BEFORE CLOSINGI T E M S T O B E C O M P L E T E D
B E F O R E Y O U C L O S E
The most often overlooked steps when buying a
house to rehab happen before an investor
buyer closes on the property.
Inspections: If you know what you are looking
at when you inspect a house, that's great. But if
you are not an expert or if you are buying from
afar, getting an expert to inspect the property is
worth every penny of the $350 to $450 you
might spend to find out there is a $10,000 or
worse repair you did not anticipate.
Structural: If there are possible issues with the
foundation or other structural items, spend the
extra money and get the opinion of a structural
engineer. It's much easier to sell a structurally
repaired house if you have the engineer report
to back up the repairs.
Previous Repairs; If you note that the home has
additions or other updates and repairs that
require a permit and inspections, check with
the city to make sure the permits were pulled
and the inspections passed. If you find the
seller failed to obtain needed permits, you
might have to go back and get them, or worse
yet, totally start over on the repair or addition by
tearing out the work.
Insurance: A few days before closing, order
insurance for your property so that you have
the proper coverage in place for you as the
buyer and your lender if there is one. Make sure
you also have the property type of insurance to
cover your either vacant property or your rental
property. Remember regular home owner
insurance is not going to cover rentals and
neither will cover vacant property.
Utilities: Don't skimp to save a few dollars. If
you are going to make money on this property
you need to get it up and running and you and
your conractors cannot do that with out the
utlities turned on.
Contractors: Have your contractor ready to go.
While you are waiting to close, find a way to get
your contractor into the home if at all possible
so you can have your contractor start any
repairs needed on day 1.
Up to this point the mistakes listed have all
came from various TV Guru shows. The next
one is all Missouri.
Notice of Intent to Sell: This is a Missouri
requirement that if a home is to be sold and
repairs have been made that the seller must
have recorded a notice of intent to sell 45 days
prior to closing. So if you plan to sell this house
in the next 45 days on, be sure to file your notice
of intent to sell when you file your closing docs.
KANSAS CITY | 29
CASE STUDIES
SAMPLE PROPERTIES
MAREI.ORG | 30
INQUIRE TODAY! 913 -735 -0018
KCINVEST
Scott Tucker kcInvest.comOffice: 913-735-0018 Cell: 816-284-7844 Email: [email protected]
Purchase Price:
Renovation:
Bed / Bath:
Size: (sq ft)
Price/Sq foot:
Year Built:
Parking:
Style:
$86,500
$40,000
4/2
1440
$87.85
1964
2 - 1 Car Gar
Duplex
Rental Income:
Property Tax:
Insurance:
Vacancy / Maint
Property Mgmt:
Cash Flow:
Net ROI:
Rent/Value Ratio:
$20,400
$1,755
$1,000 est
$1,020
$2,040
$14,585
11.53%
1.24%
5 NE Eastridge, Lees Summit, MO
Fixer Upper Duplex in HOT location with ARV of around $130k to $160 depending on repairs. Rent $850 side.
Purchase Price:
Renovation:
Bed / Bath:
Size: (sq ft)
Price/Sq foot:
Year Built:
Parking:
Style:
$100,000
$5,000
3 / 2
1352
$77.66
1960
2 Car Garage
Ranch
Rental Income:
Property Tax:
Insurance:
Vacancy / Maint
Property Mgmt:
Cash Flow:
Net ROI:
Rent/Value Ratio
$13,200
$1,940
$1,200
$570
$1,140
$8,350
8.35%
1.1%
10917 Elmwood, Kansas City, MO
Great South KC Location, easy Hwy Access Rents about $1,200 month, minimal repairs to rent.
SOLD FAST!!
Our Properties
MOVE FAST!
Get on Our
List at
KCInvest.com
INQUIRE TODAY! 816 -284-7844
REALTY RESOURCE
Scott Tucker RealtyResourceKC.com Office: 816-406-0701 Cell: 816-284-7844 Email: [email protected]
Purchase Price:
Renovation:
Bed / Bath:
Size: (sq ft)
Price/Sq foot:
Year Built:
Parking:
Style:
$75,000
$20,000
6 / 5
3448
$27.55
1925
8 off Street
5 Plex
Rental Income:
Property Tax:
Insurance:
Vacancy / Maint
Property Mgmt:
Cash Flow:
Net ROI:
Rent/Value Ratio:
$27,000 est
$102
$600 est
$1,350
$2,700
$22,248
23.42%
2.3%
109 Saratoga, Excelsior Springs, MO
Currently Vacant. Owner Previously Renovated & Had Rented. Will Need some Updates & Make Ready.
Purchase Price:
Renovation:
Bed / Bath:
Size: (sq ft)
Price/Sq foot:
Year Built:
Parking:
Style:
$60,000
$20,000
5 / 4
2120
$37.74
1920
8 off Street
4 Plex
Rental Income:
Property Tax:
Insurance:
Vacancy / Maint
Property Mgmt:
Cash Flow:
Net ROI:
Rent/Value Ratio
$21,600 est
$81
$600 est
$1,080
$2,160
$17,679
22.09 %
2.25%
121 Saratoga, Excelsior Springs, MO
Currently Vacant. Owner Previously Renovated & Had Rented. Will Need some Updates & Make Ready.
MAREI.ORG | 32
INQUIRE TODAY! 816 -226-7272
Purchase Price:
Renovation:
Bed / Bath:
Size: (sq ft)
Price/Sq foot:
Year Built:
Parking:
Style:
$45,000
NONE
2 / 1
936
$48.08
1955
1 Car Garage
Ranch on Crawl
Rental Income:
Property Tax:
Insurance:
Vacancy / Maint:
Property Mgmt:
Cash Flow:
Net ROI:
Rent/Value Ratio:
$8,700
$423
$600
$435
$870
$6,372
14.16%
1.61 %
7401 E 112th St, Kansas City, MO
Rented Ruskin Area Property. Updated Interior, plumbing, wiring and newere HVAC.
Purchase Price:
Renovation:
Bed / Bath:
Size: (sq ft)
Price/Sq foot:
Year Built:
Parking:
Style:
$36,000
None
3 / 1.5
1,248
$28.84
1928
Off Street
Bungalow
Rental Income:
Property Tax:
Insurance:
Vacancy / Maint:
Property Mgmt:
Cash Flow:
Net ROI
Rent / Value Ratio:
$9,000
$455
$650
$450
$900
$6,545
18.18%
2.08%
5232 Woodland Ave, Kansas City, MO
Market Renter on a 12 month lease at $750 a month. East of University of Missouri Kansas City.
Purchase Price:
Renovation:
Bed / Bath:
Size: (sq ft)
Price/Sq foot:
Year Built:
Parking:
Style:
$48,500
None
2 / 1
836
$58.01
1940
Off Street
Bungalow
Rental Income:
Property Tax:
Insurance:
Vacancy / Maint
Property Mgmt:
Cash Flow:
Net ROI:
Rent/Value Ratio:
$8700 est
$606
$600 est
$435
$870
$6,189
12.76%
1.49%
10530 E 14th ST, Independence, MO
Currently Vacant. Renovated Independence Ranch - Rent estimated at $725 Monthly.
RENTED
RENTED
INQUIRE TODAY! 816 -914 -2614
MCKINNIS REAL ESTATE
Nick McKinnis McKinnisRealEstateInvestment.com Office: 816-914-2614 Email: [email protected]
Purchase Price:
Renovation:
Bed / Bath:
Size: (sq ft)
Price/Sq foot:
Year Built:
Parking:
Style:
$100,000
None
3 / 1
1032
$96.89
1955
2 Car Garage
Ranch
Rental Income:
Property Tax:
Insurance:
Vacancy / Maint:
Property Mgmt:
Cash Flow:
Net ROI:
Rent/Value Ratio:
$13,200
$1483
$1,100 est
$660
$1,320
$8,637
8.67%
1.11%
11301 E 44th St, Kansas City, MO
Turn-Key renovated home. Raytown Area with a Kansas City Address to attract KCMO Employees.
Purchase Price:
Renovation:
Bed / Bath:
Size: (sq ft)
Price/Sq foot:
Year Built:
Parking:
Style:
$110,000
None
3 / 2.5
1369
$80.35
1959
1 Car Garage
Ranch
Rental Income:
Property Tax:
Insurance:
Vacancy / Maint
Property Mgmt:
Cash Flow:
Net ROI:
Rent/Value Ratio:
$14,400
$1,447
$1,200 est
$720
$1,440
$9,593
8.72%
1.01%
4601 E Red Bridge Road, Kansas City, MO
Currently Vacant. Owner Previously Renovated & Had Rented. Will Need some Updates & Make Ready.
MAREI.ORG | 34
Great South KC Location, easy Hwy Access Rents about $1,200 month, minimal repairs to rent.
INQUIRE TODAY!816 -799-6435
STAUFFER PROPERTIES
Tim Stauffer StaufferProperties.com Office: 816-799-6435 Email: [email protected]
Purchase Price:
Renovation:
Bed / Bath:
Size: (sq ft)
Price/Sq foot:
Year Built:
Parking:
Style:
$102,500
None
3 / 2.5
1204
$85.13
1958
1 Car Gar
Ranch
Rental Income:
Property Tax:
Insurance:
Vacancy / Maint
Property Mgmt:
Cash Flow:
Net ROI:
Rent/Value Ratio:
$12,600
$1,137
$1,000 est
$510
$1,260
8,693
8.48%
1.02%
10114 White Ave, Kansas City, MO
Renovated and listed for rent at $1,050 on Zillow. Great South Kansas City Location
Purchase Price:
Renovation:
Bed / Bath:
Size: (sq ft)
Price/Sq foot:
Year Built:
Parking:
Style:
$102,500
None
4 / 2
1900
$53.94
1955
1 Car Garage
S / S Split
Rental Income:
Property Tax:
Insurance:
Vacancy / Maint
Property Mgmt:
Cash Flow:
Net ROI:
Rent/Value Ratio
$14,400
$1,183
$1,200
$770
$1,440
$9,807
9.57%
1.26
10210 Drury, Kansas City, MO
BEFORE REHAB
TURN
KEY
Property
BEFORE REHAB
KANSAS CITY | 35
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c o m m u n i t yN E T W O R K I N G : E D U C A T I O N
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