All Forum Posts by: Carrie Hallensleben

@Nathanial Dunn

What area of town are they in? Can you give zip codes or intersections?

Thanks!

Carrie

I learned a lesson today and figured I'd share it. What looks good on paper and in photos isn't always the truth. We've been considering buying a triplex in midtown Kansas City an area which I know very well. We found a beautiful 120 year old mansion that had been converted into three units. The photos and description highlight all the character of a home of that age, beautiful hardwood floors, huge crown molding, several original fireplaces, ballroom converted into a huge well lit studio apartment. 

So I drove by to see how this particular block looked and the yards and neighbors. I noticed many 20 somethings out walking dogs, lots of flowers, etc. There were many other apartments nearby but that wasn't unexpected. It was right down the street from where my best friend used to live when she was renting in the late 90's. Very close to the "hip" areas of the city. So we set up an appointment to go look at it. Did I mention  it was fully occupied and recently renovated? Of course that should be a plus, right? Turnkey?

So we arrive at 10:30 to the place and after knocking and entering the 1st apartment we find a couple still in bed, (after a long night of partying??) they weren't too happy we woke them even though they had notice we were coming. While it was clear with every turn in this 3500 square foot house, the grandeur and what a special place it once was, it was also obvious that it was not being well cared for (it was a pig sty with dirty dishes, clothes, beer cans everywhere) plus there were so many places with wood rot, shoddy work done, codes violations galore, asbestos tape around the pipes, gaping holes in the sofits etc. etc. etc.  

It brought me back to the time when I was a renter and lived in midtown. We liked to have fun at nearby Westport and invite friends over. We certainly weren't the best on keeping up on laundry or getting the recycling out. We let the grass grow longer than we should have and left too many dishes on the counters before we got around to washing them. There wasn't pride in ownership because we didn't own nor did we have kids which, for us, brought a need to keep on top of the laundry, dishes, yard, a whole different lifestyle of course.   

I also was brought back to being an owner of a 100 year old home. Our first house wasn't too far from this property. It was a beauty and we LOVED it. However, it was freezing cold due to the lack of insulation, had knob and tube wiring, pipes that got clogged, and so on. While we put a lot of love, hard work, and money into that home, I don't know that I would want to be in the situation again of not knowing what we would find behind the walls. 

I'm posting this because I did have warnings about investing in multis in the city but figured I knew my way around (which I still do feel) however, the warnings weren't for naught. So many people are interested in this area on BP and I see some that are being offered that not only are older homes but also are located in worse areas. So I'm also urging due diligence and caution when looking at photos and numbers on paper. Come and visit the area and look at some of the places you are considering. I'm glad I did!

@Mike D'Arrigo

I don't doubt that Independence and Grandview are wonderful areas for investors however, I am not comfortable venturing into areas that I am not familiar with. The area we invest now is in a sought after school district of Park Hill. It is a 5 minute drive from home to get to the two we have. 

As far as midtown goes, I am quite familiar with that area as I lived there for nearly 10 years as both a renter and home owner. I know it street by street where the hipsters live, where it gets rough which by the way, our first home was between Troost and Paseo just south of 39th on a diverse and wonderful block but as you probably know, next door/a pocket within what can be a war zone. I also taught for five years at a charter school east of Paseo in the urban core serving families living in high poverty. 

I very much appreciate your caution about investing in and around KC. I don't think anyone who is not familiar with the area should go in blind. I also value your experience with multifamily. Before I move toward making any offers in or around midtown, I have much learning to do about vacancy rate, cap rate, and much more that I don't even know that I need to know.  That's where experts like you and others on this site come in. :)

@Phillip Charlton 

We've been investing for 15 months now and started slow to learn and replenish our HELOC loan each time. We did the BRRR method that has been talked about on here with Buy, renovate, rent, refinance. Now we are starting to look at multifamiles (triplexes or fourplexes) and may consider partnering or seeking private lending to grow more than we could on our own. I'm not familiar with all areas of Kansas City (a lot of folks invest in Grandview and Independence). I don't know those markets enough to take risks there. We stick with what we know which is up north and midtown.

You are welcome to reach out anytime! I think you can private message by going into the persons profile and selecting send message. 

@Brady Hanna 

@Brady Hanna I also would be interested in any wholesale deals you have so can you put me on your list of contacts? Thanks!

@Marco Santerelli  @Ndy Onyido and @Gordon Cuff 

It is great to hear from folks like you who are working successfully in this market even long distance. I feel grateful to live in such a good market.

hi Phillip!

I have been living in the Kansas City area for  over 20 years. I've lived in midtown/plaza and now up north. There definitely are many areas that are difficult to invest in. 

I'd be happy to talk more if you'd like to private message me. 

Hello BP friends,

I have been reading @Brandon Turner 's book about no and low money down along with listening to podcasts several times a week. I need some advice about a potential change in my primary residence. I've noticed in many of the recent podcasts along with the message at my spiritual home, the idea of dreaming bigger, visualizing, and taking action to bring your dreams to fruition. Mindset matters!! 

So...we have now own 2 rental properties along with our own house. Our house is 1/2 paid off and we are on a 15 year loan with 12 years left. My husband's income has increased recently with his business taking off as has mine with yearly raises. I've been dreaming of moving to a house that is lakefront in my current neighborhood. I came up with a plan to put away money each month to save for a down payment but had in mind that we would make this move in a couple of years. Well being the go getter that I am...I wrote a letter to a few of the owners of moderately sized houses here at the lake telling them of our wishes in case they would want to sell in the future. I asked if they would be interested in some creative financing such as we start paying on the property before we even move in. 

Fast forward a few weeks and I've heard back from two owners. The reason I'm posting is two fold. One, I'm super nervous to even really speak to one of them because I guess I'm not sure what I can offer at this time. Secondly, I am not sure we can afford to get on the lake at this moment so I'm wondering if I am wasting everyone's time. 

Here are the very limited details I have about the two:

Property #1:

Excellent location - Property was owned by the current (middle aged) owner's parents (I think it was built by them) and is very likely not carrying a mortgage 

He is an agent and has it currently listed for 425,000 which is close to market value (it has been listed for almost a year)

He responded to my letter by saying that he doesn't think we are on the same page with objectives but would be willing to meet with me - I haven't called him back just because I am so nervous about what I would say!

Property #2

Lake front but in a cove with not as good of a view

It has the right amount of square footage, and many new things (new deck, dock, new exterior paint, etc.)

These are friends from church who are really motivated to figure out a deal because she lost her job and they will end up in foreclosure

She mentioned us taking over the mortgage payments without a down payment - however, they are 2800 per month which is more than double what we are paying now

Her house is valued in the low 300,000's

If we were able to make this work, we could hold onto our current residence and rent it to grow our portfolio which would be great with not too many years left on the mortgage

What I would like to offer would be us paying what we would be comfortable per month (i.e. more like $2300) but then wonder how that would work for them

If they were to go into a short sale, that would require us to sell our house to get the equity for the down payment and I'm not 100% sure I want to do that

Please help with any and all ideas. Thank you to this amazing community! I never would have done anything like this without BP.

@Steven Barros

We looked for duplexes in a good school district and then ran the comps for the area as far as not only value but rent to expect as well. We have worked with inspector Nick if you google him and Kansas City, I'm sure he will come up. Are you in KC or California? It is good to have someone looking at the specific area and even street you are thinking of purchasing in. 

Good luck to you!!

@Josh Nix

That's a good idea to find out where he is coming from before trying to figure any negotiations. Thanks for the encouragement. It was a little nerve wracking putting the letter out there. But like you said, what can we lose. 

Hello,

Just looking for some input. My husband and I have a single family home we live in which is 1/2 paid off and has about 10 more years on the loan. We also have two investment properties that have both been renovated and rented. We live in a lake community and would LOVE to get a house that is lake front. Today I wrote a letter to a guy who has his property listed on Zillow but not through the realestate agency although he is a realtor. It is advertised for $425,000 which is out of our price range but I'd like to try to find a way to make it work. I think the owner probably doesn't have a mortage on it. In my letter I told him we are putting away money each month to save for a down payment to get onto the lake and we'd love to work out a creative deal with him. If he were to respond, I honestly have no idea what to suggest as a fair and affordable deal. I have never tried anything like this before. Would love any input.

Thanks,

Carrie

@Daniel Ryu

What a great success story! I love getting a peek into different cultures and it is always cool to see how much we all have in common. Looking forward to watching the video link! 

All the best for growing prosperity to you and your meetup group!

Carrie