All Forum Posts by: AJ Vanderhorst

 Thanks, Daniel. I had no idea this was even an option. City officials gave me the impression there was no paper trail whatsoever: "City record has no indication of this being anything other than a duplex."

Guessing they are blowing smoke...which would not surprise me in the least. I'd like to get to the bottom of this.

 Thanks, Hadar. In terms of a house conversion, do you mean downgrading from a 6plex to a 4plex? This is a big, colonnade-style three story property. It looks like a small apartment building and it's apparent it's never been used as a duplex. My head is still spinning, trying to figure out how it ever got zoned that way. Of course no one with the city is interested in answering that question.

Forgive my newbie questions...so apparently some lenders have more latitude for this type of weird situation than others? In my case, it's the local appraiser who paused the refi process. For liability reasons, he won't sign off on the appraisal until we resolve the zoning problem. I'd assume other appraisers tied to different lenders would want this resolved as well?

Hi all, 

I'm pretty new to real estate investing, and nearing the end of a cash-out refi process on a 4plex I've owned for a decade. My plan was to use the $$ to fund my next investment property. 

However, my lender (Quicken) has informed me that the property is zoned incorrectly and I need to get it zoned correctly before we can move forward. 

I reached out to KCMO planning and development and got this response: 

>>City record has no indication of this being anything other than a duplex. The R-1.5 zoning , would allow the use of a triplex with sufficient lot area with commercial plan review and permit for new Certificate of Occupancy. A 4-plex would be prohibited without rezoning of the property.<<

I bought the building in 2009 as a 4-plex and got it financed as a 4-plex. It has been a 4-plex for at least 50 years, under previous owners. Prior to that it was a 6-plex—the three story colonnade type that are all over downtown/midtown. So in 100 years, it's never been anything less than a 4-plex. In addition, there are multiple 4-plexes and larger apartment buildings on my block. 

I'm pretty confused at this point... How is this property zoned as a duplex? Any advice on how to move forward? It seems like this will hold up the refi indefinitely.  

Thanks for the advice, all! I appreciate the quick crash course. I wasn't getting notifications for a couple days, so sorry for my delay in responding. This 4-plex is my first property/house hack, so it's my primary residence—I should've spelled that out. It sounds like my best bet will be to look around for the best introductory HELOC rate I can find.

If I use a HELOC down the road on an investment property, apparently I'll have my work cut out for me. Of course, that would be a good bridge to have to cross...

Hi all, I've stumbled into a BRRRR situation, and I'm looking to tap into my property's equity to fund my next investment. I currently owe $277,000 on 4-plex worth approx. $800,000 after 10 years of appreciation, forced and market-driven, in Kansas City, MO.

Ideally, I'd like to use a HELOC to fund my next (more intentional) BRRRR. What's the best way to find a HELOC with favorable terms? Local? Big national establishment (PedFed)? Scan the market for hot rates and deals?

Any and all advice is appreciated. 

@Luke Carl When you say self-manage, I assume you mean coordinating cleaning/maintenance remotely while continuing to handle guest communication yourself? As opposed to handing everything off to a local mgt company or service like Evolve. Sorry for the thread hijack. A third response that doesn't answer the original question...

@Andrew Neal I bet your mileage will vary with the market. Echoing someone else’s comment, free Airbnb photos have gone the way of the dinosaur, at least in Kansas City. I’ve tried and failed to land photographers for my listings—they tend to want to shoot on weekends, when I’m always booked.

If someone contacted me with an offer like yours (off the platform) I’d be very open to it, especially in the slow season. All the more if they had a portfolio.

As it is, I’ve had to dust off my SLR, bone up on interior photography and shoot my own photos. Not ideal.

I bet your mileage will vary with the market. Echoing someone else’s comment, free Airbnb photos have gone the way of the dinosaur, at least in Kansas City. I’ve tried and failed to land photographers for my listings—they tend to want to shoot on weekends, when I’m always booked.

If someone contacted me with an offer like yours (off the platform) I’d be very open to it, especially in the sow season.

As it is, I’ve had to dust off my SLR, bone up on interior photography and shoot my own photos. Not ideal!

@Paul Sandhu That works, thanks. Hilarious listing, btw! Love the "better call Saul" references. Great job personalizing the whole pitch. My background's in marketing and copywriting...I'll stop gushing.  

 Hey Paul, your CL ad seems to keep looping me back to this thread. Care to repost or send me a link? Crafting my own CL ad and I'd love to have a look.