2108-2118 Swift St mixed use project

[Brock Thomas]

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $577,500
Cash invested: $120,000

This is a 17 unit mixed use renovation (BRRR project) in the up and coming North Kansas City (15 minutes south of the airport). 2 unit office space, 3 unit AirBNB and 12 unit apartment building. We are currently under construction with plans of leasing some of the apartments by August. The AirBNB should be in full operation by August 1. If you come to Kansas City please give us a try. You will love the attractions that are within walking distance such as Chicken N Pickle and multiple breweries

What made you interested in investing in this type of deal?

Economies of scale. I have 30+ single family and duplex doors so I wanted a project under one roof or continuous parcels.

How did you find this deal and how did you negotiate it?

This was a off market deal where I saw a building in need of capital improvements, tracked down the owner and showed them it was in their best interest to sell. I approached the owner... several times to show I had serious interest in purchasing the property. I was very persistent over 6-8 months. I then negotiated off from the appraisal price because of the condition of the property.

How did you finance this deal?

Local bank- construction loan.

How did you add value to the deal?

Apartments- New kitchen layout, moved laundry into each unit, updated bathrooms, new windows (curb appeal), updated paint and flooring, turned the laundry room into the 12 unit.

AirBNB- changed usage on the main level from office to 2 unit AirBNB.

Office building- removed drop ceilings to add 3 foot ceiling height to make the space seem larger with more natural light.

What was the outcome?

So far so good but we have a ways to go.

Lessons learned? Challenges?

Meet with the permits department prior to closing and consult with a architect.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am a licensed realtor with Keller Williams and still love to work with investors. I understand the numbers and my local market so if you are interested in KC lets connect.