I'd love to have you go on over to my new facebook page promoting real estate in and around Olathe, Kansas. As regular readers of this blog and of BBQCapital know, Olathe is a fast growing suburb of Kansas City, Missouri. The name of the site is Olathe Real Estate Keller Williams Realty.
Now, it's a new page so there aren't very many bells and whistles...yet. But I'd love to have you join if you are a facebook member and a regular reader of Kansas City Real Estate & Investing. What I discuss here and what I discuss there could be, will be, two different things.
Author’s Note: Sadly, this is based on a true story from this past weekend. Standing back at a distance it is kinda funny. Very funny, actually. Up close, knowing those involved, it’s really quite sad. Some of the minor facts and all of the names and addresses have been changed to protect the privacy of those involved.
Last Sunday Morning: Approx 2:35 am A pounding comes from the front door of the house as emergency lights illuminate the early morning hours of quiet, suburban Overland Park, Kansas.
“We’ve had a 911 call saying that a woman is being held here against her will.”
Still groggy from being aroused from a deep slumber the homeowner stands next to yet another policeman as several other Overland Park police officers enter the home and do a quick walk-through checking each closet, bathroom and bedroom as well as the more open areas.
Imagine the confusion of the half-awake homeowner and his family. Imagine the police trying to determine if this is a prank call or a serious incident. Just try to imagine.
Last Sunday Morning: Approx 2:15 am Awakening from his sleep Bob hears his mother speaking to someone unknown with fear dripping from each syllable. At first greyness clouds the mind. Quickly, however, a lucid realization that his mother is speaking to the local police department’s 911 operator (some twenty miles from Overland Park) comes over him as he leaps to his feet..
“You must help me. I’m at 123 Main Street, Overland Park. There is a strange man in my bed and people in my house I don’t recognize. I’m being held against my will. Hurry!”
Bob hurries to take the business end of the telephone away from his mother and begins to explain as rapidly as he can. But the wheels are already in motion. The address in Overland Park will be visited shortly by eager-to-please policemen as will the address where the phone call was made.
Over The Last Four Years The mother in question here is close to me. Almost family, really. Two years ago I sold that house at 123 Main St., OP, KS for her and her husband whom I’ve known since 1975. Two years ago they packed up and left their house of forty-four years. The mother and her husband had raised eight children in that home. Forty-four Christmases. Forty-four Easters. Too many birthday parties to count between children, grandchildren and even this extra family member.
During this emotionally transitional time the early signs of Alzheimer’s began to show itself with “mom.” Slowly at first. But today there are days when the disease seems all too comfortable with it’s host. There are days she forgets that I have children. Worse, there are days when she forgets her own children.
And there are days when she is back in that house at 123 Main St. That house was comfortable. That house was home. That house was part of who she is. I guess she’s never really left that house. Not emotionally. And as for the new owners, I can only hope that they are patient, understanding and that one day that house will mean as much to them.
Out of state owner says SELL this Kansas City, Kansas duplex. The owner's priorities have changed over the years and now he is moving on. That means he's held on to this duplex for sale too long and just wants to move on. His loss is your gain. Each side rents at $695. One side is currently occupied and the other side is getting some minor renovation done before new tenants are placed. It's had a good occupancy history and has been professionally managed.
Wow! Owner just reduced to $87,500! He wants to move on and his urgency is your gain.
Do the math. You buy at $95,000. If each side is bringing in $695 you are at $16,680/yr. Follow? Look below.
This Independence half duplex for rent is available to the first qualified tenant that says "Mine!"
Located at 1400 S Harris Ave, Independence, MO this half duplex for rent is being leased for $625 per month and a $575 security deposit. We are an equal opportunity housing provider.
Downstairs you will find a size-able living room, dining room, kitchen (with pantry), half bath, utility room and a very large storage room. Upstairs to the two bedrooms, one full bathroom and plenty of closet space. New interior paint, clean carpet and homey atmosphere.
There is a very large yard to play in or grill in or whatever. There is a two space private parking area right in front.
This investment property for rent is being offered by Chris Lengquist of Keller Williams Realty, Diamond Partners, Inc. Chris is acting as the property manager for the landlord.
To schedule your private viewing please call Chris at 913.322.7505.
This Kansas City house for rent in the Waldo neighborhood is a winner! Featuring 3 bedroomsand 1.5 bathrooms, wood floors, a HUGE basement and a heating & air conditioning system that is less than 18 months old. Did I mention the heating & air is high efficiency? That should help with the bills. Oh, and there is a one car garage.
Located on a corner lot across from a popular but quiet city park this home is a short walk to the bus routes of Holmes and 85th Street. And to all that Waldo has to offer. The yard has a dog walk and dogs are permitted with a $200 non-refundable pet deposit.
The address of this house for rent in Kansas City is 8301 Oak St., Kansas City, MO 64114. The asking rent is $845 per month with an $800 security deposit. We are an equal opportunity housing provider.
To view this home you need to call Chris at 913.322.7505. Chris is a licensed real estate agent in the states of Kansas and Missouri with Keller Williams Realty, Diamond Partners and is acting as the property manager for the landlord.
This is not my listing. But I am really liking this Olathe Duplex that is for sale. Priced at $184,950 the price has been lowered from an original asking price of $200,000...which I thought was a little high. Each side is 2 bedrooms and 1.5 bathrooms with a one car garage per side. (Not my photo so sorry about the quality.)
The really good news? It's in Olathe which is still a healthy real estate market. It's across the street...literally...from Mid American Nazarene University. And just minutes from I-35 and everything Johnson County, Kansas has to offer.
I think you can expect rents in the $750 - $775 range. The duplex is currently not rented and is owned by the Nazarene Church from what I understand.
If you are in the market, can qualify for the investment loan and have the cash on hand to make this work I strongly recommend you take a close look at this place. Contact me today if you are looking for an investment property in the Kansas City area. My phone number is 913.568.1579.
I'm going to break for this post from talking about Kansas City real estate investment property and talk about a specific part of the Kansas City real estate market and that is Johnson County, Kansas. You see, a real estate investor client of mine who has purchased a few homes from me has asked me to help his son and fiance to buy their first home. They are looking for something that will give them the warm and fuzzies but also be a solid buy and a good investment.
What they want is a home in the Overland Park/Leawood area of town priced between $175,000 and $200,000 with at least 3 bedrooms, 2 baths, 2 garages...you know the drill. Most of their money will be spent on the down payment, closing costs and move-in expenses so they don't want or need a fixer. So what can we find them "under-valued?"
Let's break for a moment and talk about mindset. With all the bad news thrown our way day after day after day (by the way, go back and read my posts from a couple years back...you'll see I never bought in to the whole "boom" thing for KC, either) you'd think you could pick up houses on the cheap all day every day. So what exactly does "under value" mean?
In my humble opinion Johnson County, Kansas is, has been and will continue to be the economic engine of Kansas City. Oh, I know KC has more population and business headquarters and all that. But the money and exec types have always ventured over to the Kansas side. (Calm down Missouri. I didn't say all the money and execs and I didn't say we were better than you.) ;) Although our football team beat your football team...
Real estate values in the Kansas suburbs simply have not dropped the way people have seen real estate values drop as little as a few miles away on the Missouri side of the line. There are only 45 homes available that meet the criteria of these new buyers and really only 9 of them look all that appealing. Days on market? Looks like about 122 is the average...throwing out one on the market for about 2 years.
A closer look reveals some more interesting thoughts about our current real estate market in Johnson County, KS...or at least this part of JoCo. In the last 6 months (that's what appraisers are looking at, right?) the average days on market for homes in that price range has been 73 for the solds. Average asking price has been $187,421 with average sales price right at $181,738. That's still 97% of asking price!
Does that sound like a depressed real estate market to you? No. Houses are not selling in a week or two any more. No. You can't just ask whatever you want price wise, either. But ask yourself this the next time you are hearing all the bad real estate news: What does this have to do with me and my current situation? Maybe everything. Maybe nothing. That's why you need professional help when trying to decide.
One last note. And this will concern Kansas City real estate investing. I've been accused of being a snob when it comes to helping people buy residential investment property. But if you'll look at the rental properties I've sold to my buyers over the last few years I'd put their current values next to any current values in the country. Some have actually appreciated even as we stand today. Others are even and a few are actually a little depressed. But in all cases rent covers the costs as we initially calculated. So even the depressed houses have the wherewithal to ride this storm out.
Portraits Today Studios is opening a store in Olathe! Portraits Today Studios is a same-day portrait studio that delivers your photos to you the same day you take them. Usually within an hour after your photo session.
What does this have to do with real estate? Truthfully, not much. But that's okay. More businesses opening in Olathe shows that the economy here is moving forward. The more businesses, the more jobs. The more jobs, the more demand for housing. And etc.
Check out their website if you are looking for professional photograhpers in the Olathe area for your holiday and family photos.
Why am I teaching a class next Saturday about Rehabbing and Renting Kansas City investment property versus flipping homes? Two main reasons;
Finding a home that has the numbers to flip aren't nearly as numerous (or in as good of neighborhoods) as finding homes to Rehab & Rent.
Flipping real estate is simply an income replacement...or supplement. Rehabbing and Renting is a method of generating a little extra cash flow while building equity for your future. Really just a more hands on way of becoming a "passive" real estate investor.
The Numbers Of Rehabbing & Renting Right off the bat when you are looking for a home to Rehab & Rent vs Flip you can find a house that sells for 6% - 8% more and still make money! Now, that may not sound like a lot but have you tried to buy houses at the prices needed to flip? It's inside that last 10% where people make and lose money. And it's also inside that last 10% where sellers seldom go.
The 6% - 8% savings comes from you not having to sell the property when you are done rehabbing. You save the real estate agent's costs and the closing costs. And before you tell me "I can sell it myself" you had better pay attention to what market we are in.
And think about this, rehabbing to a rental standard is much different than rehabbing to a resale standard. If I know I'm going to rent this investment property I'm far more likely to downgrade the carpet a little, downgrade the paint a little, downgrade several things...a little. I don't want to go cheap. I do want it inhabitable, desirable and functional. I just don't need it to "Wow!" a prospective buyer. Therefore, cost savings here that I can spend later when it's time to sell...when I have even more equity in the house.
Negotiating The Purchase Of An Investment Property It doesn't take a genius to know that most people don't wish to give their homes away. You can negotiate them down based on cost of improvements necessary, equity they may have in the home and a whole host of other factors.
But too many "flippers" bought homes that were priced too high. Flippers get frustrated working with me because I won't let them buy homes they are going to lose money on.
"But if I can make $8,000-$10,000 on this I'll be fine."
Ah, have you ever flipped a house? How about more than one? You can go through your "profit" of $8,000-$10,000 in extra, unexpected repairs and price reductions in a heart beat.
In flipping you need to buy a house as follows: ARV - Quick Sales Discount (5%-10%) - Cost of Repair - Holding Cost - Sales Costs - Expected profit (15% - 20%) = Purchase Cost.
When you are rehabbing a house and then holding it as an investment property for rental purposes you can add back into your purchase price the Quick Sales Discount (or at least some of it) and the Sales Costs. This will immediately include a whole lot of homes you didn't necessarily have access to before.
So how would you like to own a home for rental purposes that you purchased and rehabbed and still saved 15% - 20% below the actual value of the home? You'd have all that as equity for your future. Buying an income property can be done so many different ways. This is but one. If you ‘d like to learn more about Rehab & Rent just see the all the details of an upcoming workshop I've got going on.
There will be a Rehab & Rent Workshop put on by Chris Lengquist of Keller Williams Realty in Olathe on Saturday August 23, 2008 at 9:00 am and ending about noon. Space is limited so you must register to attend this workshop designed to teach you the numbers and philosophy of buying a home under market, rehabbing it to rental standards and then renting the home for cash flow. The location will be at Keller Williams Realty Olathe located at 801 N MurLen Rd, Olathe, KS.
Guest speaker Ryan Dusenberry will also be in attendance to share his own personal experiences with this technique that has allowed him to build his investment property portfolio to 9 properties...and he's still in his mid-twenties. And of course Chris Lengquist will be there to teach the fundamentals of how to evaluate these properties to choose between the winners and the losers.
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Have you ever wanted to own rental property in the Kansas City area?
Have you ever wanted to rehab a house for the profit?
Have you ever been frustrated with the available inventory of rental property and rehab property?
Have you ever wanted to know how to evaluate rental property before you buy?
Have you ever wanted to hear from someone actually doing it?
Have you ever wanted to hear from a lender on the subject of rehabbing and renting?
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There is no charge for this Rehab & Rent Workshop. But you must register. Simply click on the register highlights and fill out the form and indicate that you are registering for this workshop. There will be no books to buy, no seminars to sign up for at outrageous fees and no tapes proclaiming any get rich quick schemes.
This is a hands on workshop so feel free to bring a calculator, pencil and paper. Bring your questions and a good attitude.
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What if you could buy a home or duplex that was for sale significantly under market? Maybe not enough under market to flip the house but enough to rehab and then rent. You'd have great cash flow and a fair amount of equity just sitting in the property waiting for your next move later down the line.
Detailing the ins and outs of residential investment property ownership. Negotiating your best terms. Working with tenants. Knowing before you buy whether or not a property should be profitable.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
This Kansas City house for rent in the Waldo neighborhood is a winner! Featuring 3 bedroomsand 1.5 bathrooms, wood floors, a HUGE basement and a heating & air conditioning system that is less than 18 months old. Did I mention the heating & air is high efficiency? That should help with the bills. Oh, and there is a one car garage.
This is not my listing. But I am really liking this Olathe Duplex that is for sale. Priced at $184,950 the price has been lowered from an original asking price of $200,000...which I thought was a little high. Each side is 2 bedrooms and 1.5 bathrooms with a one car garage per side. (Not my photo so sorry about the quality.)
A closer look reveals some more interesting thoughts about our current real estate market in Johnson County, KS...or at least this part of JoCo. In the last 6 months (that's what appraisers are looking at, right?) the average days on market for homes in that price range has been 73 for the solds. Average asking price has been $187,421 with average sales price right at $181,738. That's still 97% of asking price! 
;)
;)
