Many people know that I’m in the process of expanding my business to include another area/state outside of the Puget Sound. In particular I am focused on Wichita, KS because of my family ties to the area which include my mom and dad, who own their own real estate company called Myrna Haas Realty. With my parent’s accident earlier in 2007 I have been traveling there somewhat extensively and I’m in the process of getting my RE license there so I can start doing business when I am in town.
The big bonus of this is that with Team Reba having a segment of our business that focuses on investment properties, we will have more direct access to a product that will more likely cash flow better than most of the multi-family properties here in Puget Sound. With the past several years run up in prices in the tri-county area (King/Snohomish/Pierce) it has become more difficult for investors to find a property with a decent price per unit, positive cash flow and reasonable yield opportunities. We’ve watched CAP rates drop to the lows of 4-6% locally and the Wichita marketplace positions us to look at more favorable buying conditions.
Some of the factors we look at when considering a market area for investment include what a locale offers in terms of economic growth and infrastructure. In July of 2007, oddly coinciding with the beginning of my local real estate classes, Wichita put forth an urban neighborhood revitalization plan. The property I purchased there this year (in May) happened to sit right on the border of this area setting me up for the likelihood of a neighborhood resurgence for the values in the area. I’m also hoping that where this property sits there will be opportunity for improving the overall tenant character and safety. I’ve been told by some of the long-term tenants that live in and around the area that crime has been an on-and-off again issue for the area. To that end, I’ve been working with local tenants and the police to try and do my part to help limit the opportunities for crime such as installing more security lighting, instituting gate locks, regular police contact, and working to get law-abiding neighbors to come together – much like a block watch but without the more formal organization. Another positive aspect of the location of this property is “The Arena” that is currently beginning construction in the downtown area near “Old Town“. The arena is expected to hold NCAA games and be available for other convention type opportunities to help bring in revenue into the Old Town area of Wichita. I look forward to the additional businesses (restaurants and shops) that will likely crop up around this new city feature since my building is within walking distance of it.
For those of you interested in reading the revitalization plan for Wichita, I have attached a link above to the multi-page document. It’s a big one (about 73 or so pages) but there are also some good map overlays that show the plans in a visual manner for the likely rezoning of the areas the city will be concentrating on for re-development. In the meantime, we at Team Reba will be forging ahead with our plans to bring investors to the city and to helping Wichita realize its plan of revitalizing these areas nearer to the downtown core.
