All Forum Posts by: Nate Morris

This is in 95124. 2 years ago we did a cashout Refi and bought 46 units in KC. 
I have been trying to model scenarios to keep it by installing an ADU and/or JADU though the cashflow is just not worth the investment. We are now looking to sell to perform our first new construction development of 10 unit townhomes nearby. Let me know if you want to see the proposal as likely we will need to raise another $600k.

How is Avondale doing now, a year later? Is this a good target?

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $699,000
Cash invested: $145,000

Full gut single family residence including hardscape, landscape and complete interior remodel.

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

It was a classic live in rehab in an up and coming neighborhood with great schools, walk to shops and easy freeway access.

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

We found the deal ourselves and negotiated directly with seller.

How did you finance this deal?

Meriwest Credit Union supported our first time home buy and the offered two free rate discounts post close.

How did you add value to the deal?

Comps

What was the outcome?

We used this asset as a cashout for other investments.

Lessons learned? Challenges?

Lots!

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

Annette Seaborn in Los Gatos was key in encouraging us to hold / rent rather than sell.

Calling all Owners!! 

I am looking to connect with folks working to full-fill the new Bill 108 requirements for STVR on the Big Island of Hawaii. 

Please message if your in the same boat and let's exchange notes. 

Hawaii Planning Department

Bill 108 - Non confirming, un-Hosted Short Term Vacation Rental (STVR)

http://www.hiplanningdept.com/short-term-vacation-...

Hi Adam, 

Good to be in touch. 

Lots of action since our last discussion. We should plan another lunch!!

Property is located at Kuakini Hwy and Akoni, in the Kuakini Heights subdivision. Price listed for $765,000 at purchase including some negotiated terms. I put the property value closer to $950,000 at a $75,000 NOI on an 7.75% cap rate.

We have data for 8 months since purchase. We experienced ~60% occupancy for top level Airbnb and 100% occupancy for full time lower rentals. Our financials are solid at 9.7% cash on cash return after all expenses and an IRR close to 19% including a conservative appreciation value. We are harvesting about $150,000 of depreciation for 2018 with active real estate participation. I would advise to carefully consider energy costs, zoning for legal TAT, increasing GET tax as well as high cost of on island management.

Investment Info:

Single-family residence buy & hold investment in Carnelian Bay.

Beautiful 4 bedroom 2 bath residence on the North Shore of Lake Tahoe, 5 min walk to the Lake, near Ski Resorts, Restaurants and surrounded by the beauty of the Sierras. The home features a large fenced yard for furry friends to roam free, a 8person hot tub, walk-in shower and garage full of toys.

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

We grew up traveling to Tahoe for amazing summers and winters. Now we know the secret and peaceful Beauty of the fall and spring with locals abound.

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

Off market sale negotiated directly with owners.

How did you finance this deal?

Private Loan

How did you add value to the deal?

We have improved appliances, furnishings, paint and amenities.

What was the outcome?

The Airbnb has been a success for years.

Investment Info:

Single-family residence buy & hold investment in Kailua Kona.

This single family residence is a tri-level 3000+ sq.ft home. The bottom two levels are Ohana units rented full-time to local residents and the top level is a fully remodeled 5 bedroom 2 bath AirBnB. Each level has 180 degree ocean views. The property is located less than 5 minutes to world class beaches, Kona coffee farms, and bustling downtown Kona.

Investment Info:

Single-family residence buy & hold investment in San Jose.

Our first home has now been fully renovated including kitchen open scheme with vaulted ceiling into skylight. The Master Bath has a large walk-in shower below skylight. The backyard is a complete outdoor living space. We have enjoyed amazing renters since converting it in 2014.

Investment Info:

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

Purchase price: $755,000

David and Alice Smart's Historic "Additions" is two buildings totaling 28 rooms in the Northeast KC community situated between KC Med/Biosciences and the Hardesty Renaissance. Full renovation top to bottom including premium sub-terrain units, laundry and manicured gardens. This is an Opportunity Zone investment. Amazing community near parks, open green space, beautiful tree-lined boulevards, local shops and more!!

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

We have been looking for a Historic renovation project in order to provide clean, safe and affordable housing to help revitalize the local community. These buildings offer the charm of old KC on wide tree-lined street near scenic drive open space parks. Each unit came with an open air balcony, larger interiors and the gardens.

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

The deal was listed under contract in Loopnet, when we met the Clemons Group agent Richard Redding. Richard helped us search for similar listings on and off market. When this property fell out of contract we were positioned well with financing and an offer. The negotiations were smooth including a 45 day close, minor retrades for electrical and plumbing. We are happy to have worked with the seller and the Clemons Realty Group.

How did you finance this deal?

This project is financed through ANB bank with a construction loan.

How did you add value to the deal?

We are continuing to add value to the property including full unit renovations, brining 6 out-of-service units back to service, and converting one common/laundry room into +1 additional unit.

What was the outcome?

The response from current and new tenants has been very positive.

Lessons learned? Challenges?

Renovations in occupied buildings is challenging. We are grateful for our understanding tenants and partners. The importance of properly scoping, budgeting and contingency is extremely important. Finally, underwriting must always include an ongoing reserve as well as quote supported expenses such insurance, snow removal, water and utilities

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

I would recommend Richard Redding of Clemons Real Estate and Brian Roby of ANB Bank.