All Forum Posts by: Emanuel Blando

Congrats on getting started and taking action Walter!  If you need any connections to services like lenders or contractors please reach out! 

Since you have already put investment into the rehab, if I were in your shoes, I would try it out on furnished finder as an MTR and see how it goes since that was your first gut feeling for it.  It does take some more investment in furniture, and if it pans out it would be well worth it.  In my MTRs in KC I keep them all full all the time, so I believe the demand is there!  The pictures of the street look clean and safe.  So I would go for it!  But I have a decent tolerance for risk. Worst case scenario, you have to sell the furniture and rent it long term, are you ok with that?  Cut your furniture costs a bit by going to FB marketplace and Ikea. 

What is your podcast called and where can we listen?  Also, I might be interested in being an LP or in some way involved with these types of syndications.  Would love to learn more and connect. 

My biggest advice is, don't overprice.  Price at what the market will bring and there will be plenty of demand for renters.  I've seen landlords get greedy and it just hurts them.  For example- Let's say you're trying to rent a unit for $1200/mo.  If you let it sit for 2 months vacant thats 2400 you have lost. You could just drop your asking price on rent by $100/mo to $1100, thats $1200/yr less, sound like a lot. BUT if you go vacant for 2 months how many years does it take to make up one month of lost cash flow?  Id rather have the $1100 NOW, then incrementaly raise it every year.  If you are not refilling units fast in any season, fire your property manager, or drop the price fast.

Hey Olivia!  What connections are you looking for?  Contractors, lenders Agent, other investors? What kind of investing are you doing?

Yeah Tim, I am totally surprised too. There's a lot of both in KC, the Gov of Missouri is Republican, but unfortunately for Airbnb hosts, the mayor of KC leans left.  So in Palm Springs, was it all just wiped off in a day?  Like Airbnb and VRBO just have to comply and take listings down? 

On 5/3/2023 the City of Kansas City, MO announced that Short-Term Rentals will be completely banned in ALL residential zoning!  I had not taken it seriously until I read a couple of articles outlining their plans.  Most of Kansas City's STRs were already operating 'illegally' up to this point and the city doesn't have the resource to enforce their permitting requirements.  Just 7% of KC's BNBs were permitted.  But now they plan to enlist the help of the platforms like Airbnb in enforcing their law by requiring Airbnb to not list any properties that have a KC address, with heavy fines on hosts for not complying.  (links about all this below)

What I want to know:  Is there anyone that knows of other cities that have taken similar measures?  Has the government been successful in getting the cooperation of Airbnb and other platforms?  How does it all go down when a city begins to ban bnbs?

https://www.kcmo.gov/Home/Components/News/News/2033/16
https://www.kcur.org/news/2023-05-04/kansas-city-council-will-vote-on-restricting-airbnbs-in-residential-neighborhoods

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $70,000
Cash invested: $50,000
Sale price: $185,000

This was an interesting hoarder house. The man who lived there was 'off grid'. So he got all his water from the rain. There were big water containers on the gutters where he got all his water for the home. City water was not turned on at the house! After several dumpsters and some plumbing repairs, it was a pretty straightforward full gutt flip! We also add a full bathroom!

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

Decent margin and had financing in place.

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

Got it from a friend who had picked it up after it fell out of contract several times on the market.

How did you finance this deal?

Cash and hard money.

How did you add value to the deal?

Full on reno and bathroom addition.

What was the outcome?

$$$

Lessons learned? Challenges?

Clear communication with contractors is key!

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

I was the Realtor on the sale. The purchase was off market.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $574,000

Used a cash-out refinance from a rental portfolio of 5 single-family homes and used that money to buy 7 more doors in the same neighborhood. Got the 7 property portfolio from one seller in a package and got them at a great discount.

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

Increasing my portfolio by 140% in one transaction.

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

Was the buyer's agent for the seller years ago. When the client called me ready to sell I happened to be in the market. I only wanted 5 out of her 9 properties due to the condition of some of the homes. I was able to sell 2 out of the 9 to a flipper client and then agreed to buy the remaining 7 including the 5 better properties and the 2 others. I got a deal on it because I solved the seller's problem of liquidity. She wanted a quick sale of all 9, and could not take the time to sell 1 by 1.

How did you finance this deal?

I used a cash-out refinance from an existing renal portfolio.

How did you add value to the deal?

The rents were under market value at purchase. Whenever there is a vacancy or lease end I rehab the property and put a section 8 tenant at full market rates.

What was the outcome?

Doubled cash flow overnight.

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

Negotiated and brokered the deal myself.

A combo for sure! We did some new counters floors and paint. And a new HVAC. That's about it.