All Forum Posts by: Brock Thomas

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $577,500
Cash invested: $120,000

This is a 17 unit mixed use renovation (BRRR project) in the up and coming North Kansas City (15 minutes south of the airport). 2 unit office space, 3 unit AirBNB and 12 unit apartment building. We are currently under construction with plans of leasing some of the apartments by August. The AirBNB should be in full operation by August 1. If you come to Kansas City please give us a try. You will love the attractions that are within walking distance such as Chicken N Pickle and multiple breweries

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

Economies of scale. I have 30+ single family and duplex doors so I wanted a project under one roof or continuous parcels.

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

This was a off market deal where I saw a building in need of capital improvements, tracked down the owner and showed them it was in their best interest to sell. I approached the owner... several times to show I had serious interest in purchasing the property. I was very persistent over 6-8 months. I then negotiated off from the appraisal price because of the condition of the property.

How did you finance this deal?

Local bank- construction loan.

How did you add value to the deal?

Apartments- New kitchen layout, moved laundry into each unit, updated bathrooms, new windows (curb appeal), updated paint and flooring, turned the laundry room into the 12 unit.

AirBNB- changed usage on the main level from office to 2 unit AirBNB.

Office building- removed drop ceilings to add 3 foot ceiling height to make the space seem larger with more natural light.

What was the outcome?

So far so good but we have a ways to go.

Lessons learned? Challenges?

Meet with the permits department prior to closing and consult with a architect.

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

I am a licensed realtor with Keller Williams and still love to work with investors. I understand the numbers and my local market so if you are interested in KC lets connect.

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $577,500
Cash invested: $120,000

This is a 17 unit mixed use renovation (BRRR project) in the up and coming North Kansas City. 2 unit office space, 3 unit AirBNB and 12 unit apartment building. This was a off market deal where I saw a building in need of capital improvements, tracked down the owner and showed them selling was in their best interest. The 3 unit AirBNB was acquired from a separate owner. The property was being used as office space but had been vacant for the better half of the last 5 years. We are currently under construction with plans of leasing some of the units by August. The AirBNB should be in full operation by August 1. If you come to Kansas City please give us a try. You will love the attractions that are within walking distance such as Chicken N Pickle.

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

Economies of scale. I have 30+ single family and duplex doors so I wanted a project under one roof or continuous parcels.

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

I searched for multi-family owners in the zip code. I then looked for ones that needed capital improvements and/or were not being managed well. I approached the owner... several times to show I had serious interest in purchasing the property. I was very persistent over 6-8 months. I then negotiated off from the appraisal price because of the condition of the property.

How did you finance this deal?

Local bank- construction loan.

How did you add value to the deal?

Apartments- New kitchen layout, moved laundry into each unit, updated bathrooms, new windows (curb appeal), updated paint and flooring, turned the laundry room into the 12 unit.

AirBNB- changed usage on the main level from office to 2 unit AirBNB.

Office building- removed drop ceilings to add 3 foot ceiling height to make the space seem larger with more natural light.

What was the outcome?

So far so good but we have a ways to go.

Lessons learned? Challenges?

Meet with the permits department prior to closing and consult with a architect.

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

I am a licensed realtor with Keller Williams and still love to work with investors. I understand the numbers and my local market so if you are interested in KC lets connect.

@Jacob Greenhoe what part of town? Community banks are usually specific to the markets they invest in. Pony express, bank of liberty, equity bank and bank of Weston are a few. If your looking for an agent/ team to assist you let me know. I have a great team to help you.

Investment Info:

Single-family residence fix & flip investment in Gladstone.

Purchase price: $80,000
Cash invested: $24,600
Sale price: $135,000

This was a pretty quick and easy one. I thought about renting it but with the market conditions I decided to sell it. Most of my rentals look just like this and in a similar location so it wasn't an easy decision.

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

It is my target kind of rental property and I know the market well. I knew it would be easy to rent or sell. It was a solid home with no foundation issues.

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

A friend brought me this deal because he knew I was in the business. His father in law didn't want to put the house on the market and it needed some work. I knew I could rent or sell this one and come out good. It was a very straight forward, simple construction project. I sold it on the first day on the market. I probably could have gotten more but the buyer needed a 3 week closing and wrote a full price as is contract.

How did you finance this deal?

I paid cash.

How did you add value to the deal?

New kitchen cabinets, interior and exterior paint, removed over grown landscaping and put new LVT flooring in the bathroom.

What was the outcome?

A quick and easy $22,000 net profit.

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

I am a licensed agent.

@Chris Billington. Are you still looking for a turn key multifamily? I may have a good opportunity for you in a great area.

@Steve Patterson...says the person who hasn’t filled out a profile.... there are lazy people everywhere. I wouldn’t generalize. I know many agents that are workaholics.

Updated 4 Bedroom, 3 Bath True Ranch Home! All hardwood floors throughout main living area. New flooring in main kitchen and bathrooms. Basement is set up for a house hack. Basement includes bedroom, full bath, living room and kitchen...perfect rental space to pay part of the mortgage payment! Newer windows, driveway & kitchen cabinets. New interior paint and stainless appliances in main kitchen.

Market rent is $1300/mo, but this could be a great house hack for an owner occupant.

I have a seller who wants to sell to me.  He has a loan that is current with a loan amount of about $125,000.  We agreed on a sales price of $187,500.  He is willing to keep his loan/ let me use it while I rehab and sell the house.  How do I structure this?  

In this market your losing money by not listing with an agent. I listed my flip last week and had 75 showings in 6 days and a bidding war. Having Multiple offers to give to the appraiser to justify the selling price also helps with what I’m getting. Multiple offers are very common and always give sellers options. Inventory is so low you want to leverage buyers anxiety.

Two 4-plex buildings for sale in a great location in the middle of rapid development close to the airport.  Both were constructed in 2006.  Two 3 bed, 2.5 bath 1 car garage and two 2 bed 2.5 bath 1 car garage in each building.  One property has an unfinished walkout basement while the other is slab on grade.  This is part of a development that has onsite professional management, clubhouse, pool and exterior maintanence provided.

9121-7 N Dalton- 2017 Gross Income $59,200, gross expenses $21,058, NET INCOME $38,142 ($615,000)

9130-36 N Helena- 2017 Gross Income $49,495, gross expenses $20,379, NET INCOME $29,116 ($575,000)

Last year each building lost a couple long term tenants therefore lost some rents due to make ready timelines and increased expenses.  Rents have been increased and both buildings are 100% occupied.  This is a great location with top rated Park Hill School District.