All Forum Posts by: Steven May

As someone who owns several rentals in and around the area $1300/mo may be a stretch if it is very close to the highway. Although the hospital is there - most would likely agree not a area you would walk your dog at night. Yes, gentrification is happening but that area is still definitely C class. I'd underwrite for $1200/mo to be conservative but will leave that in the hands of a PM. The farther west you can get the better your hopes for STR purposes.

Yeah we have a couple different submarkets here in Kansas City that we could make that happen in! 

Investment Info:

Other buy & hold investment.

Purchase price: $750,000
Cash invested: $63,000

Purchased self storage facility #2. 50/50 ownership with a partner. This is down the street from our first one. 99 units on 6 acres with 50,000 sq ft of outdoor RV, trailer, boat, etc parking. This deal also came with 1 acre next door that has a 6,000 sq ft industrial warehouse on it with a NNN lease in place. Purchase at 90% occupancy. We plan to self manage with our ESS software, organize outdoor parking, and increase rents. Expected value after 1 year is $1,300,000

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

Great asset class at a great price. Low overhead and economies of scale.

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

Cold call - same owner as the first one we bought.

How did you finance this deal?

20% down bank loan. 4.1% fixed for 5 years. 25 year amortization.

How did you add value to the deal?

We will be raising rents, organizing outdoor parking, and self managing to decrease expenses by about $30,000/year.

What was the outcome?

Cash cow.

Lessons learned? Challenges?

Always continuing to learn.

Investment Info:

Other buy & hold investment.

Purchase price: $750,000
Cash invested: $63,000

Purchased self storage facility #2. This was the same owner who sold us our first one. 50/50 ownership with a partner. This is down the street from our first one. 99 units on 6 acres with 50,000 sq ft of outdoor RV, trailer, boat, etc parking. This deal also came with 1 acre next door that has a 6,000 sq ft industrial warehouse on it with a NNN lease in place. Purchase at 90% occupancy. We plan to self manage with our ESS software, organize outdoor parking, and increase rents. Expected value after 1 year is $1,300,000

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

Great asset class at a great price. Low overhead and economies of scale.

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

Cold call - same owner as the first one we bought.

How did you finance this deal?

20% down bank loan. 4.1% fixed for 5 years. 25 year amortization.

How did you add value to the deal?

We will be raising rents, organizing outdoor parking, and self managing to decrease expenses by about $30,000/year.

What was the outcome?

Cash cow.

Lessons learned? Challenges?

Always continuing to learn.

Investment Info:

Other buy & hold investment.

Purchase price: $750,000
Cash invested: $63,000

Purchased self storage facility #2. This was the same owner who sold us our first one. 50/50 ownership with a partner. This is down the street from our first one. 99 units on 6 acres with 50,000 sq ft of outdoor RV, trailer, boat, etc parking. This deal also came with 1 acre next door that has a 6,000 sq ft industrial warehouse on it with a NNN lease in place. Purchase at 90% occupancy. We plan to self manage with our ESS software, organize outdoor parking, and increase rents. Expected value after 1 year is $1,300,000

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

Great asset class at a great price. Low overhead and economies of scale.

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

Cold call - same owner as the first one we bought.

How did you finance this deal?

20% down bank loan. 4.1% fixed for 5 years. 25 year amortization.

How did you add value to the deal?

We will be raising rents, organizing outdoor parking, and self managing to decrease expenses by about $30,000/year.

What was the outcome?

Cash cow.

Lessons learned? Challenges?

Always continuing to learn.

Congrats! Curious, what location in Kansas City?

Hey Austin! Happy to chat about my air bnb in Waldo that I own & self manage. Also have helped clients buy air bnbs in Waldo, west plaza, Strawberry hill, independence & north of the river in the last few months. 

@Garett Weber is pretty spot on with the locations. I own one in 64114 and am currently helping several out of state investors purchase STRs in and around the Plaza, near KU Med, Waldo, and Midtown can be a great location as well. I have helped a handful of Hawaii investors purchase Air BNBs in Independence as well and just North of the River. Happy to chat about it!

At that price point and that large of a house, you’ll most likely be doing student rental housing due to proximity to Kansas State University. Sure it can be great cash flow but are you interested in rented to 4-6 college students? Then it may be a good fit for you. In that scenario, PM experienced in that rental group would be key.  

I’d focus more on KC, MO - better appreciation and larger market for tenant pool than Manhattan.