All Forum Posts by: Jake Boyer

Investment Info:

Single-family residence other investment.

Purchase price: $467,278
Cash invested: $75,000

New build STR on Table Rock Lake just outside Branson MO in the Jax Creek Development. This single family home is 4 bedrooms 4 bathrooms and is located in a community of STR's. The contractor also has a property management company who will manage the properties in the community and offers additional ammenities like free kayaks, paddle boards, etc. for tenants in addition to boat rentals and more. This process started out a little rough as the builder died from Covid shortly after we signed the contract. Things got delayed, communication fell off, and the stress level went through the roof, but we're back on track now and hoping to be done by the end of May and start taking tenants!

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

Intended to be a passive investment, but things changed when the builder passed away and communication became a challenge with the new players. My partners and I stepped up and started putting pressure on them to perform and we're back on track now. Always been interested in the STR space and found this as a great opportunity to get into one.

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

Found through one of my partners on the deal who has other STR's in the area

How did you finance this deal?

Each partner put up money to purchase the lot with cash and the builder financed construction and will get it financed once complete.

How did you add value to the deal?

Building new

What was the outcome?

Still in progress, but should be complete next month!

Lessons learned? Challenges?

Communication is absolutely KEY! Make sure to establish tangible targets to achieve and keep a timeline with their commitments to ensure things get done as promised.

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

No

@Javier Santana No I haven't yet, and am not real familiar with it since my other investments are in single or multi family. I'll certainly read up on it a bit though and see what I can find. I appreciate the tip!

Hi, I'm looking for a unique property that serves multiple purposes. The ideal property would be a commercial building with retail, office or multipurpose on the lower level, then offices, condo's or residential on the upper floor(s). The closer to downtown Lawrence/Massachusetts street the better. The building should be at least partially constructed of masonry and can be in any condition from completely dilapidated to completely renovated, which is why the wide range of pricing of up to about a million. I've got cash to close the deal and/or preapproval for financing if needed.

Why I'm looking for this specific building type and location is that my other company manufactures construction chemicals and products, with an emphasis on masonry restoration and adaptive reuse of buildings, based in Lawrence KS. We struggle to find building/locations to host trainings for contractors, presentations for architects, etc. where we can demonstrate product uses and show real world conditions. Ideally we would have an open area of 2500-10000sqft in one area and the ability to house those who travel into the area for these trainings in a separate area from the "training center" portion of the building, whether upstairs or adjoining units. Ideally suited for at least 6+ housing units, up to 25 or more. The housing units don't necessarily need to be full apartments with full kitchens or anything, but should allow for bedrooms and bathrooms.

This search is dual purposed in that I would be able to purchase and renovate as an investment property, then rent the space back to my other company as a training facility, while also generating income as an investment property. Ideally the facility would lend itself to short term rentals for those traveling into the Lawrence area, and while I'd love to make some money on the property, this particular property can work out for me in other ways beyond cash flow as long as I can break even on expenses. I'm happy to elaborate more on my ideas here if you're interested and think you can help.

Hi, I'm looking for  a unique property that serves multiple purposes. The ideal property would be a commercial building with retail, office or multipurpose on the lower level, then offices, condo's or residential on the upper floor(s). The closer to downtown Lawrence/Massachusetts street the better. The building should be at least partially constructed of masonry and can be in any condition from completely dilapidated to completely renovated, which is why the wide range of pricing of up to about a million. I've got cash to close the deal and/or preapproval for financing if needed.

Why I'm looking for this specific building type and location is that my other company manufactures construction chemicals and products, with an emphasis on masonry restoration and adaptive reuse of buildings, based in Lawrence KS. We struggle to find building/locations to host trainings for contractors, presentations for architects, etc. where we can demonstrate product uses and show real world conditions. Ideally we would have an open area of 2500-10000sqft in one area and the ability to house those who travel into the area for these trainings in a separate area from the "training center" portion of the building, whether upstairs or adjoining units. Ideally suited for at least 6+ housing units, up to 25 or more. The housing units don't necessarily need to be full apartments with full kitchens or anything, but should allow for bedrooms and bathrooms. 

This search is dual purposed in that I would be able to purchase and renovate as an investment property, then rent the space back to my other company as a training facility, while also generating income as an investment property. Ideally the facility would lend itself to short term rentals for those traveling into the Lawrence area, and while I'd love to make some money on the property, this particular property can work out for me in other ways beyond cash flow as long as I can break even on expenses. I'm happy to elaborate more on my ideas here if you're interested and think you can help.

Thank you all for the feedback... Most of it was appropriate and helpful... I guess I should have asked the initial question a little different to start, more along the lines of what you said @Nathan Gesner 
If I have non conforming bedrooms due to lack of egress windows in the basement, and clearly articulate that these are not legal bedrooms to the tenants, what liability concerns do I have if they decide to use that space as a bedroom? As you noted, tenants can set their kids bedroom in the hallway if they want to after they've moved in as long as they aren't violating the occupancy number or other laws. 

I like the idea of classifying it as a "Bonus room" and leaving it up to the tenant's how they want to use it. I certainly don't want to create any hazards for my tenants and would NEVER want to mislead anyone, just want to make sure I'm maximizing the space and I'm curious if there needs to be any precautionary language in the lease and/or listing to make sure I'm covered from a liability stand point? 

Looking forward to it! Any specific topics for the night? 

Hey All, I've got a duplex where we've got a full height basement that we'd like to add two bedrooms and a bathroom to. The basements (one on each side) do have windows currently, but they wouldn't qualify for egress windows for bedrooms due to their height off the floor. Excavation and cutting into the foundation wall would not be cheap for the egress windows and we're up against it on the budget. 

I'm not expecting this to be much of a cash out refi potential on this property so my main goal is to increase cashflow as much as possible. I'd like to use the basement as additional bedrooms and could still add the bathroom since there is existing plumbing already, but the expense of egress windows and getting someone to do it in a timely manner is damn near impossible. I could easily frame the walls up and add closets, electrical outlets and HVAC ducts. I see people using basement rooms as bedrooms that don't legally qualify all the time, so I'm wondering what the concerns/liabilities are? As a landlord, you wouldn't tell someone that they can't set up a bed and have a member of the family sleep in the basement, so does this create any liability for the property owner? Could I list it as a 4 bed duplex legally? Illegally? Any concern there? Cashflow as a 4/2 on each side would be so much stronger than as 2/1's but not enough to justify the expense to do it all above board. Open to any and all feedback, please!

Hey BP, I've got a property in Tacoma that was originally built on two lots. The house crosses the original dividing line between them, so I'll need to get a survey and do a Boundary Line Adjustment to re draw the new line. Anybody been through this with the city of Tacoma, WA before? Any insight is much appreciated!

Investment Info:

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

Purchase price: $183,750
Cash invested: $183,750

Duplex in Independence MO purchased with cash with my business partner and best friend in the KC market, where I'm originally from. He is the boots on the ground and will manage the day to day local stuff, while I'll do what I can from a distance on the management side. Bought as 2/1's but we're looking to make both sides 4/2's. ARV as two 4/2 units should be close to 250k and rents should be 1300-1500. Just closed after Christmas 2021, so I'll update as things progress!

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

Multifamily deal in my home town, but still out of state for me. Cash flow potential is much higher in MO and properties are much cheaper. Easy one to get into and either rent out right away or do some minor updates to the upstairs and add value through additional bedrooms in the basement.

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

Found it on market through an agent in KC area

How did you finance this deal?

Cash out of pocket

How did you add value to the deal?

Adding two bedrooms and a bathroom to the basement on each side of the Duplex to take it from 2/1's up to 4/2's

What was the outcome?

In progress

Lessons learned? Challenges?

I'm used to doing a lot of the work myself and this will be my first LTR out of state (have STR's out of state, but total different model) where I'm not the one swinging a hammer. Will be very interesting to see how things turn out!

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

Worked with Patrick Woods in the KC Area and he was great! Good eye for the potential and easy to work with overall. I'd recommend him to other investors in the area.

Investment Info:

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

Purchase price: $183,750
Cash invested: $183,750

Duplex in Independence MO purchased with my own cash with my business partner and best friend in the KC market, where I'm originally from. He is the boots on the ground and will manage the day to day local stuff, while I'll do what I can from a distance on the management side. We may end up passing it off to a property manager when the time is right as we continue to scale our business. As is, it consists of 2/1 units on both sides of the duplex, and looks much nicer than it is in the photos honestly. Given the neighborhood, we could rent it out as is, but we decided to make at least some cosmetic updates to the kitchens and baths, then we're looking to add two more bedrooms and a bathroom in the basement to make both sides 4/2's before getting financing and paying myself back from the cash purchase. ARV as two 4/2 units should be close to 250k and rents should be 1300-1500. Just closed after Christmas 2021, so I'll update as things progress!

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

Multifamily deal in my home town, but still out of state for me. Cash flow potential is much higher in MO and properties are much cheaper. Easy one to get into and either rent out right away or do some minor updates to the upstairs and add value through additional bedrooms in the basement.

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

Found it on market through an agent in KC area

How did you finance this deal?

Cash out of pocket

How did you add value to the deal?

Adding two bedrooms and a bathroom to the basement on each side of the Duplex to take it from 2/1's up to 4/2's

What was the outcome?

In progress

Lessons learned? Challenges?

I'm used to doing a lot of the work myself and this will be my first LTR out of state (have STR's out of state, but total different model) where I'm not the one swinging a hammer. Will be very interesting to see how things turn out!

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

Worked with Patrick Woods in the KC Area and he was great! Good eye for the potential and easy to work with overall. I'd recommend him to other investors in the area.