All Forum Posts by: Seth Wilson

Also know ALL of your expenses prior to purchase. Don't wing it, don't guess, know it! (I just read your last post)

Spencer,

Remember that you are looking for a motivated seller, the last thing you want to be is a motivated buyer! I know that whenever I find myself getting too excited about something and I want to move on it quickly, especially if it is a new project for me, I will overlook all sorts of issues or dismiss serious potential problems.

Sam Zell has said "A good investment is made when the other guy wants your money more than you do." I always keep that in mind in my investing. Make him want to sell more than you want to buy.

Wade,

Even if it was a 100 unit building it WOULD be feasible. For the same reason you would spend the time to look at all of the units in an 8 unit building, you don't know who or what is lurking behind those doors...

Good Morning,

I have been watching the apartment boards for some time now and have learned a ton, thanks to all that contribute and share their time.

I have been looking for multifamily properties for a couple months now and am in the final stages of negotiations on a 12 unit in a C-class area that is bouncing back due to the recent development spurred by the city and state. Most if not all of the undesirable elements have been removed from this area and is really rebounding, plus the larger economic factors in KC have made multifamily a little hot as of late. Having said all of that the complex is poorly managed, and I am looking for a value play. It is owned by a couple bar owners who have rehabbed the property with ambitions of flipping it. The units are rent ready but they were unfamiliar with income property and hired an incompetent property manager.

Anyway here are the numbers: 12 unit 2bd/1ba

Purchase Price; $235,000

Gross Income (reported); $29,000

Expenses (reported); $8,000

Market Rent; $480-500/mo

4 vacant units

Late Payers in 4 other units

I have personal ambitions of being a developer someday and think that taking on a property like this that will need my guidance would be great. I have done some 'soft marketing' and there is demand for this area and at this price. While the CAP rate is low on this property I am confident that I can fill it up with quality tenants quickly and have started interviewing property managers that specialize in this type of property.

So for my questions;

1. Financing, I have been calling around to traditional lenders but I feel they may not be too interested in such a property due to its poor numbers. So I am looking at HML. Is there anyone that you all may recommend? And what should I look out for or avoid?

2. Re-Financing, I would like to hold the property and take equity out later and cash flow on the deal. I have read that it is about 12-18 months of stabilized management till this can be done, does that check?

3. Section 8, The area would still be subject to a number of interested section 8 tenants. I have started my homework on working with the city but once again is there anything special I need to be aware of going into this?

Long story short I think this would be a great start for me and a profitable deal in the short and long term. Now what I need is for you all to try and burst my bubble, tell me all of the things I don't want to hear and any advice you may have.

Thanks again all!

I like to cross reference mine with craigslist, zillow, and calling on nearby rentals to see what they are charging for what.

Renometer.com is totally new to me. But poking around on those sites and calling on other landlords, comparing your property to theirs is probably the best and fastest way.

@SamCraven, is that just at the local courthouse?

Howdy,

I think that the ways that you all are marketing through direct mail, etc. is great. I just tried to do the same through Listsource which has great reviews from people on BP and it has a friendly software interface. But here has been the rub that I have had; I ordered a list for a geographical area around Kansas City to include 4-30 unit buildings among other criteria. Listsource, doesn't do Kansas and sent me a list that included individual condo owners, which makes up half of the the list and the other half is suspect. I have been trying to get in touch with their customer service people, but after holding for more than 30 min, I was put in touch with some who barley spoke English and certainly didn't understand what I was trying to accomplish.

Has anyone else had this experience with them and what can I do to make my list better? I am also now looking at using ListAbility.

I still think that this is a great marketing tool that I used when I did SFRs but now I am stepping up to MFR.

Thanks in advance!

Sounds awesome, keep us all posted!

Good afternoon, I am Seth Wilson originally from St. Louis, but now living in Kansas City, Missouri. I have been reading the posts and listening to the podcasts from BP and was finally convinced to formally introduce myself.

I am currently in the Missouri Air National Guard as a C-130 pilot. I have moved quite a bit in my 7 year career, but have finally settled down in Kansas City (permanently) and couldn't be happier. I have some previous RE experience in SFRs, wholesaling, mobile homes, and rent-to-own in Nebraska and Iowa. Moving forward I would like to invest in value add Multi-Family Residential in the Kansas City area. Specifically, 4-10 units and more if available. I have the time, energy, motivation and even some funding to move forward with my plan. I am looking to network with individuals and create long-term mutually beneficial business relationships.

Other than that I enjoy physical activities, the outdoors, all things aviation, travel and working with my Border Collie, Sally. Thank you all for the warm welcome in advance and look forward to learning more about how we may help each other!

Paul, I am a newbie to MF as well and just recently (this week) I have been looking for a broker. I started by searching "Kansas City Multifamily Brokers" and looking on Loopnet for who had the listing types and areas that I am looking for. Then I spent a few hours calling around, some said that "I don't work with less than 100 units and others would only work with institutional investors but I would ask for recommendations and they all started to recommend the same guy. I took that as a good sign, so I called him up and he promptly called me back. I explained that I had worked in SFRs and that I am totally new to MFR and needed a sherpa. He eagerly suggested that we meet next week to talk about my goals, so far I think I am on the right track.

Hope that helps.