All Forum Posts by: Kirk Calhoon

@Evan Dyer if I had to do it all over again, I would absolutely House hack and turn it into a BRRR. Unfortunately, I already had a young family when I discovered the strategy. I have e done several BRRR's and multi unit flips in the KC area. All have been very successful and I attribute that the buying theproperty right. Never buy a property just to "get in". Get the best price you can by looking at a lot of properties and make a lot of offers. When you find the right property for the right price, don't let it go. Take care and good luck.

Investment Info:

Large multi-family (5+ units) commercial investment investment in Lawrence.

Purchase price: $1,000,000
Cash invested: $7,500

Made my largest MF purchase to date using partner funds and my own cash. This is a large scale BRRR project. We are currently rehabbing interior units and bidding out exterior cosmetics. This is a true "Work in Progress" and will have more details and learnings as time presses on!

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

I have always wanted to scale the amount of units I own but buy for the right price. I went outside of my metro area to a nearby college town to do so. The market dynamics are different and rental cycles are different however cap rates are very similar so I felt really comfortable with the purchase.

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

I actually found it on the MLS believe it or not! Owner's just had the last deal fall through and I promised to move quickly. I made good on my promises and closed in January.

How did you finance this deal?

I used partner funds, my cash and a community bank for short term monies and rehab costs. Plan to move to agency debt once re-evaluated and stabilized.

How did you add value to the deal?

That is a "work in progress" but we are rehabbing all units and exterior to bring it up to date and raise rents throughout. MF valuation is based off NOI and cap rates. Once you know that info, it's up to you to add value accordingly.

What was the outcome?

TBD

Lessons learned? Challenges?

A continued lesson on all of my deals is that you have to explore all options on construction. EG. Don't spend too much! I always want my units to be top notch, but it's not realistic to make sure you return your capital.

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

Cindy Nielson with Reese and Nichols did a great job helping me close this and battled with me through and through!

Wow, I am totally deficient in checking my BP page! Thanks for the replies. All of my RE leads come from Zillow and MLS searches that I have set up with a realtor. I also network with local brokers to find pocket listing which is how I bought my 29 unit. Look for that post shortly!

@Kenny Dahill. No charge for Cozy but correct on the wait

Investment Info:

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

Purchase price: $85,000
Cash invested: $70,000

June 2018:Picked up a Duplex in historic Westside KC MO. Bought for $85k BRRR method is by far the most profitable way to invest in real estate and create that investing snow ball! We are rehabbed currently and are rent ready. Property is listed for rent and for sale. I am under contract on a deal that will inevitably be a launch pad for my RE career so if it makes sense, I am going to 1031 exchange my profits over into my next deal.

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

Building that passive income snowball! You have to find the BRRR deal at a solid price and make sure to not over spend on your rehabs (easier said than done). This strategy seems to be pretty rock solid as long as you don't over spend.

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

I found this on the MLS. I made an offer over asking to due it being under valued. I offered to close quick with cash and that shot my offer to the top. The property was deeply neglected so that lowered the buyer pool by quite a bit. Once we closed mid summer we got right to work!

How did you finance this deal?

I used a HELOC to buy cash in had funds in the bank from my last BRRR ready to deploy for construction.

How did you add value to the deal?

We cleaned up the place, Added efficiencies such as additional insulation and new plumbing. We drywalled, painted and dressed it up so that it it up to date. The property is very close to the downtown mid town area of Kansas City so I knew that it will rent relatively quickly at the right price. We are in lease up as I type this.

What was the outcome?

Number TBD, in lease up and actually listing for sale for 1031 purposes

Lessons learned? Challenges?

Old building come with many many many more headaches. They just built things differently 120 years ago. Don't avoid these at the right price but be careful and know what kind of project you are taking on!

Investment Info:

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

Purchase price: $85,000
Cash invested: $70,000

June 2018:Picked up a Duplex in historic Westside KC MO. Bought for $85k and am currently flipping for a Buy and Hold BRRR. BRRR method is by far the most profitable way to invest in real estate and create that investing snow ball! This property came complete with all the headaches and challenges that come with rolling up your sleeves and gettin' it done! December 2018: This property being built in 1907 had plenty of challenges including a sewer pipe issue that gave me a lot of heartburn. We are rehabbed currently and are rent ready. Property is listed for rent and for sale. I am under contract on a deal that will inevitably be a launch pad for my RE career so if it makes sense, I am going to 1031 exchange my profits over into my next deal. More on that deal to come when it is closed.

KC

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

Building that passive income snowball! You have to find the BRRR deal at a solid price and make sure to not over spend on your rehabs (easier said than done). This strategy seems to be pretty rock solid as long as you don't over spend.

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

I found this on the MLS. I made an offer over asking to due it being under valued. I offered to close quick with cash and that shot my offer to the top. The property was deeply neglected so that lowered the buyer pool by quite a bit. Once we closed mid summer we got right to work!

How did you finance this deal?

I used a HELOC to buy cash in had funds in the bank from my last BRRR ready to deploy for construction.

How did you add value to the deal?

We cleaned up the place, Added efficiencies such as additional insulation and new plumbing. We drywalled, painted and dressed it up so that it it up to date. The property is very close to the downtown mid town area of Kansas City so I knew that it will rent relatively quickly at the right price. We are in lease up as I type this.

What was the outcome?

Number TBD, in lease up and actually listing for sale for 1031 purposes

Lessons learned? Challenges?

Old building come with many many many more headaches. They just built things differently 120 years ago. Don't avoid these at the right price but be careful and know what kind of project you are taking on!

Sounds like you are doing all the work and they are purely financially invested.  What is your time worth?  If this was my deal and partnership, I would negotiate a larger % or pay myself for hours spent on rehab.  Either is fair and I would bounce off of the partners what they think is most appropriate.  2 cents!  

not true on the 75%. Just closed with UMB KC at 80% LTV. Process was very easy and pain free.

Although I will be out of town for this event, please please keep these going!  

KC

Hello all,

I am actively looking to interview property managers in the Kansas City area to take over my portfolio and grow with me.  I am open to any and all referrals; folks that you know and trust.  My strategy is small to midsize B&C Class multifamily.  I focus on key areas of KC Mo and Johnson County.  Looking for a management team that can market apartments and adequately manage all over the metro.  Thank you!

KC