Studs down Buy and Hold Duplex in KCK

[Darel Ison]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Kansas City.

Purchase price: $100,000
Cash invested: $105,000

This one was my BRRR from hell! Beware that in KCK, the county zoning and tax assessor do not talk.

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

I purchased this originally because it was listing on the tax assessor records as a Triplex. It had however been operating as a duplex for the last 8 years. Just as my contractor was about to start getting the 3rd unit up and running a neighbor came by and told us that the building lost it's zoning as a triplex and was a non-conforming duplex now. After some verification with zoning, we found this

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

MLS Deal, Got the sellers to drop from $120k to $100k

How did you finance this deal?

Construction loan with LendingOne, then a refinance with LendingOne

How did you add value to the deal?

Studs down remodel. Transformed two 2/1 units to one 3/2 and one 4/2

What was the outcome?

Great longterm rental property

Lessons learned? Challenges?

Call the county zoning department on all deals