All Forum Posts by: Matt Crawford

@Gregg Heminger - congrats!

@Jonathan A. - Thanks for asking. It is finished! All tenants moved in May 1st and overall has been going smoothly sense. I plan to post a more detailed “success story” on BP sometime soon. How is the project you have in KC going?

@Jonathan A. - It was through a small local bank called “Nodaway Valley Bank”. They have branches as far south as St. Joseph, MO (just a bit north of KC,MO). I grew up in Lee’s Summit, MO ( a Suburb of KC). Feel free to ask if you have any questions on the area. Grateful, Matt

Aaron, 

Thanks for the info-that is helpful! 

I am aware of the new changes coming to the KC market.   This house actually has separate living quarters and I was actually considering it for short term leasing until I saw this policy coming to effect this fall. 

I can currently looking at purchasing a house in the R-7.5 district of Kansas City, MO. The House is a SFH with 4 bedrooms and two bathrooms.

I am interested in renting out the house with separate per-room leases.  Is this legal and compliant with zoning code in Jackson County MO? 

Thanks!  

@Greg Downey - great questions.

1.) While the property is still being rehabbed (should be finished within the next 3 weeks God-willing), I marketed it for rent back in December and have 6 out 7 units rented. This is my first project - talking with a seasoned property manager in town and several others, they think I'm too low on rent. 

2.) Good thoughts. I was just under the impression that since the value of the property hinges on the NOI (being 5+ units), I would need some proven history to document the actual expenses. I'm hearing you say that this is not necessarily true.

@Greg Downey - Technically just one refinance. I also borrowed 80% of the purchase price from this local lender. When I have made my final draw on the construction loan, we will set the terms of the loan (what I am seeking advice on). 

Since this property has a major rehab and sat vacant for several years prior, there is no data to present regarding the NOI... I believe I am about $200-$300 low on my rents all 7 units combined as well. I plan to raise the rents over the next year with hopes of raising the appraised value. Is there a faster way to prove NOI without waiting for a year or two to build a history?

Hey BP, 

About 9 months ago I purchased a dilapidated 7-plex in Maryville, MO (north of Kansas City, MO) and have been in the process of rehabbing the property. I financed the rehab through a construction loan with a local lender. I am now beginning to discuss end-financing. My options through this local bank are either a 20, 25, or 30 year 5-1 arm all at 5.25%. I am leaning towards doing the 30 year in order to increase the cashflow. I also tentatively plan to refinance in roughly 2 years in order to pull my initial investment out of it (BRRRR strategy with a slower refinance). Is this good thinking? Is there better options out there? Thoughts?

Grateful,

Matt