All Forum Posts by: Dena Wesley

@Frank Z. I would get a few more estimates. Several years ago on my primary residence, my front porch steps were settling and pulling away from the porch slab causing some settling in the entryway. You could see the drywall seem tearing in the corner. My first quote was $19,000! The guy said I needed 12 piers all around my house. He was working the hard sell let me tell ya, and had a credit application ready for me to fill out.... had me thinking my house was going to crumble if I didn't get all those piers. He happened to be driving a nice, newer Cadillac so needless to say, my gut said get more estimates because this guy wants me to contribute to possibly another Cadillac purchase ; ) 

Other quotes I received were $7000, $3500 and finally $1800. The last quote is what I went with not because it was cheap but because the guy said for now, let's start with one pier to lift the steps then see what happens from there. Also, some grading around the rest of the house to lead water away should be done as well. Glad I got several estimates because for my situation, the one pier remedied the problem. 

Good luck!

Dena

@Kalen Jordan

Kalen,

I recently bought my first investment property in this area. The house was on a nice block with lots of rehabs going on around it which was one of my criteria for purchasing. There are "pockets" in Kansas City where investors have been buying, rehabbing and selling or buying to rehab and hold. Looking at the second map you posted, I wouldn't go east of 71 hwy since it does start to get a little rough. I have seen some revitalization east of 71 hwy but for me, it's still too speculative for my current conservative investing goals. As others have stated, either coming to the area or having boots on the ground and driving the neighborhoods will certainly give you better insight as to whether to invest or not. When a property piques my interest, I drive by at different times and days of the week to assess the level of comfort I have in the area. Hope this helps and good luck!

Dena

@George Smith

George,

Welcome to BP! These photos have that HDR appearance that I see a lot in my area when it comes to real estate photography. Quite frankly, I'm not a fan because because it gives the appearance of everything looking grungy and dark as some here have pointed out, especially if the decor is too homogeneous; that could be why the ceilings appear gray? 

As @Will Barnard suggested, some creative staging is a start to improve the appearance. This would help potential buyers  envision themselves living there. You'd be amazed at how a few furniture pieces, area rugs, accent pillows for sofas and wall art can make a difference. It doesn't have to be expansive. A little bit can go a long way.

And, thank you for your service!...keep us posted on what happens.

Dena

@Samantha Smith

Hi Samantha, I recently experienced something similar. I got an unexpectedly low quote on the property which I thought was unusual considering its location. That should've been my red flag right there. After about a month after closing, the insurance company wanted to come out and do an inspection inside and out. I started rehabbing (removed trim around windows and base boards in living/dining room because they had been sprayed with texture, kitchen cabinets being torn out, doors taken off, walls were being skim coated, etc.), so with the exception of the loft area where my bedroom is, the place was a total mess. And the exterior needed to be painted due to several areas having peeling paint but that couldn't be done immediately since my paint guys were really slammed at the time. 

After doing some research, I figured it was the insurance company looking to justify increasing the premium since my current premium was so low. I spoke with the gentleman who was trying to schedule the inspection and told him this. In so many words, he agreed and stated he had similar reactions from other clients. I declined the inspection and had my broker look for a new insurance company. Just like you, I didn't include in my budget to replace a roof since it doesn't appear to have any immediate issues.

As others have suggested, you can go ahead and have them come out to do an inspection but be prepared for them to find something which at that point you will either have to correct it or risk being dropped or, just start looking for another company and mitigate the situation. Hope this helps and good luck!

Dena

@Martin Neal Nice details and breakdown. Concerning the appraisal, he most likely used townhouses that were nearby only so that the comps would be similar and reflect a relatively accurate ARV. I did a similar purchase a couple of years ago except I live in my BRRRR. I too thought that when I refinanced, the appraiser would include homes nearby that were similar to my townhome but that wasn't the case. The lender I used to purchase the townhome also only used comps from other townhouses so I can relate as far as being a tad disappointed with the final appraised value but it still worked out favorably.

I did do some sweat equity to save on rehab costs otherwise I probably would've spent a lot more. I was able to recoup my rehab costs while still maintaining $20,000 in equity so no PMI...and it doesn't hurt to have an uncle who's a contractor that did some minor plumbing and electrical in-kind because I'm his favorite niece :)

Anyway, just thought I would mention my experience regarding the appraisal on my deal. Congrats and good job!

@Rachel Pivonka You may want to mention that her credit, along with the co-signer could be negatively affected if she decides to break her lease if you're not able to reach an amicable agreement. 

Great story. Thanks for the inspiration and defining true freedom. Blessings to you and your sister.

@Steve Johnson Thanks for the congrats. I'll send you a colleague request. Let's do meet in the near future and chat about all of the great revitalization potential in KC and contributing to it. I don't want to be just an investor, but someone who is a catalyst to the growth and increased value in these areas.

Look forward to hearing from you Steve!

Dena

@Steve Johnson

Welcome to BP! 

I too have been looking in that general area for a while. Four years ago, I was about to go under contract to purchase a mixed use property on Troost that had rehab work started. It needed minor structural work, interior painting and new kitchen for upper loft living area. I knew the previous owners who had done a lease option with the seller that didn't work out so the plumbing, HVAC, windows and electrical was all brand new. It was a beautiful living space with exposed beams, brick and hardwoods. There were two store fronts on the lower level. I was going to use a rehab loan to complete the existing work and later on, convert one of the store fronts into a studio apartment. Unfortunately, the seller owed in excess of $80,000 in liens to the city, which included a partial demolition in 2011. The back of the building that was a garage that extended out on the lower level, collapsed and killed someone. I called code enforcement and originally was told that the city would forgive the liens if the structural repairs were made in a timely manner. I e-mailed a second time to double check and get it in writing and the reply back from the code enforcement manager was different. That deal was no longer on the table and so if I bought the building, I bought the liens with it. I'm glad I did my due diligence.

I had a couple of deals last year but both went belly up. The lender wouldn't finance a unique property (earth home) on the west side of Paseo and the other property was south of Linwood near 32nd and Gilham. The seller wouldn't extend the closing claiming to have received a cash offer $5000 higher than the contract price. Ironically, the house still sits vacant with the lock box on it. I suspect there was never a offer and believe the seller wanted me to offer more than what we had originally agreed on once our contract expired. I finally found a HUD property on the Kansas side near 39th and Stateline and closed last month. I am in the process of rehabbing it and will live there a year and a half then rent it out.

It will take some time but I think the city will stay the course and redevelop Troost. The issue I have is that some property owners who are trying to sell in that area are asking way too much money considering the amount of rehab needed in some cases and a few quite frankly, just need to be torn down. This is why I started looking on the Kansas side but if you find that diamond in the rough in those areas you referenced, I believe it will pay off in the long run. KC just needs to woo some major businesses here and help balance the housing growth in the urban core.

Its been a lot of hard work and disappointments as many have said here on BP but eventually, if you do it right and wait patiently, it will work out to your favor :) 

Again, welcome and feel free to PM me.

@Jay Hinrichs, @Brittany Rose and @Marc Woodward. Thank you all for your feedback and advice. It is very much appreciated and yes @Jay Hinrichs, there are plenty of deals still here in KC. A broker who I met via networking just happen to e-mail me this morning about a couple of properties that her company will be listing and she wanted to give me first dibs to take a look.