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i am also curious about those numbers from an investor stand point. the returns i have been seeing in Texas average around the 10% cap rate range which is ok for “A” properties in “A” neighborhoods but nowhere close to the numbers available in other “investor friendly” markets that tend to average 15%+. with that being said, Austin is 1 of my top 5 cities to live in and ranks very high in the owner occupied markets.
According to http://www.fhfa.gov, here are the 3rd quarter numbers on the home price index for 2010;
Austin -.48% Average home value – $283k Cost of living index 101% of national average – $47k avg income
Houston -.93% Average home value – $192k Cost of living index 91% of national average – $41k avg income
Kansas City -.58% Average home value – $146k Cost of living index 88% of national average – $44k avg income
xarp wrote:Wow, that's great! I thought you might be just own 1 property and you are a wholesaler.I am investing on my own, so I probably wouldn't use your services in buying a property – but theoretically I maybe could see if you could help me with rehabbing in the future.
By the way, have you also checked Topeka, KS market? What are your thoughts about that?
i am not familiar with the topeka market. really any market can be profitable if you have the proper power team in place. where people get into trouble investing is buying the wrong property, hiring bad contractors, over/under rehabbing for the market and having lousy property management. every property looks good on a pro-forma. its actually achieving the numbers that is sometimes hard.
xarp wrote:morekc wrote:ActToday wrote:I don't always agree with Nigel's posts but in regards to Vegas I think he is 100% correct.according to http://www.fhfa.gov this is what the las vegas market is doing. Year Quarter Las Vegas-Paradise, NV 2010 3 -8.38 2010 2 -14.60 2010 1 -19.20 2009 4 -18.89 2009 3 -22.12 2009 2 -26.78 2009 1 -29.75 2008 4 -33.77 2008 3 -29.23 2008 2 -20.68 2008 1 -13.02 this is kansas city Year Quarter Kansas City, MO-KS 2010 3 -0.58 2010 2 -2.85 2010 1 -4.44 2009 4 -1.76 2009 3 -1.25 2009 2 -1.50 2009 1 -1.08 2008 4 -2.68 2008 3 -2.46 2008 2 -1.09 2008 1 -0.10
Thanks for sharing the numbers! Have you invested in Kansas then? I actually bought there a Multifamily property last month – in Topeka, Kansas.
I wrote a short article about my experiences here: http://www.buyingpropertyinusa.net .
It is a 5-unit building and I got it for $55,000 and financed partially by the owner, so I paid just $12,000!What are your experiences with Kansas? Did you buy something directly in Kansas City? I was checking the market there as well, but the return on investment seemed to be lower.
Also, if you have some good contacts for handymen or property managers, could you PM them?Cheers
i am actually 1 of the largest home buyers in kansas city. i buy 5-15 properties a month that we rehab, place tenants and sell to investors globally. i actually bought 20 properties in December. we also have a property management company and manage approx 400 properties in the kansas city area. our returns are based upon risk. higher risk urban neighborhoods will have much higher returns than “A” properties in “A” neighborhoods.
our website is http://www.morekc.com.
let me know if i can assist.ActToday wrote:I don't always agree with Nigel's posts but in regards to Vegas I think he is 100% correct.according to http://www.fhfa.gov this is what the las vegas market is doing.
Year Quarter Las Vegas-Paradise, NV
2010 3 -8.38
2010 2 -14.60
2010 1 -19.20
2009 4 -18.89
2009 3 -22.12
2009 2 -26.78
2009 1 -29.75
2008 4 -33.77
2008 3 -29.23
2008 2 -20.68
2008 1 -13.02this is kansas city
Year Quarter Kansas City, MO-KS
2010 3 -0.58
2010 2 -2.85
2010 1 -4.44
2009 4 -1.76
2009 3 -1.25
2009 2 -1.50
2009 1 -1.08
2008 4 -2.68
2008 3 -2.46
2008 2 -1.09
2008 1 -0.10APerry wrote:lucigoosey wrote:Funny thing this US investment, everyone has a totally different opinion of where to invest. Why doesn't anyone talk about areas such as San Fransico, Oakland, Memphis, Seattle As an outsider these areas seem to be very solid and they have cheap property's as well as forecolures aswell any thoughts experts?I'm sure there are opportunities to make money everywhere in the US at the moment. The problem is that to invest there successfully you need to do more than buy well. Finance is difficult, as is property management, and it would be very difficult for someone offering a service over there to solve these issues for their clients in every market, or for an individual to solve them for themselves. Also, some markets are more depressed than others and there are very different financial landscapes in different areas. If you find an attactive market and can solve the issues that have affected Australian investors over there for years then there is no need to look anywhere else.
ABSOLUTELY!!
if you dont have a trustworthy power team on the ground, keep your money in your pocket.
property management is the single weakest link in the whole investing chain.
if the property is not rented and cash flowing with DECENT tenants it is worth nothing.lucigoosey wrote:Funny thing this US investment, everyone has a totally different opinion of where to invest.Why doesn’t anyone talk about areas such as San Fransico, Oakland, Memphis, Seattle
As an outsider these areas seem to be very solid and they have cheap property’s as well as forecolures aswell
any thoughts experts?
memphis has proven to be a good cash flow model with lower price points similar to kansas city. the other markets seem to be a lot pricier and much lower returns from the investors i have spoken with.
kansas city missouri has proven to be a great investment.
lower than usual unemployment.
current population growth.
future job growth outlook strong.
diverse economy with large blue collar work force.
rehabbed homes in GOOD neighborhoods in the $30k-$40k range that rent for $700-$900 per month.
