All Forum Posts by: Derek Burkard

Congratulations, that's incredible cash flow! How did you go about creating it as a short term rental process? Did you have have reach out to the city for approval? I've been considered jumping into STRs as well, currently just doing buy and hold longterms.

Quote from @Jennifer Casey Kime:

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $145,000
Cash invested: $50,000

Contributors:
Nick Kime

After remodeling we rented on a monthly basis. We paused renting for about 3 month to complete the Springfield Short Term Rental approval process. That definitely hurt cashflow in the short term. We plan to continue focusing on monthly rentals but now have the option to rental out short term. I expect the cashflow to be level out closer to $800.

When we took control of the house we had to pull out all the nasty carpet, lay flooring, paint, update electrical, etc. House looks pretty nice now.

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

This property is close to two hospitals in Springfield. That made it idea for travel nurse rental. The house needed a lot of update but no structural/major repairs. My husband and I were able to do most of the work.

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

This was our first deal so we didn't really negotiate. We found the property through an online search and contacted the selling agent directly. The broker had a buyers agent in the office also that did the purchase for us.

How did you finance this deal?

Husband and I took out loans against our 401(k)s.

How did you add value to the deal?

We did a lot of updating. We pulled out old nasty carpet and padding. We installed new laminate flooring and painted everything. Had to install and second sump pump under the house. Doors had to be refitted a little. Electrical outlets and switches were all replaced. A dual-head mini-split was installed for the upstairs bedrooms.

What was the outcome?

The house came out really nice. It was quickly rented to travel nurses.

Lessons learned? Challenges?

This was our first investment property purchase. So my husband and I had to learn all of steps starting with the pre-approval letter. Even the process of making an offer was confusing. We were afraid to make an offer before the bank had approved the loan. We didn't realize there was a finance contingency in the offer contract. Once our agent saw that we were confused she did a great job explaining the process. We were definitely more prepared for our second purchase.

@Christian Albright It really comes down to your goals and the area. For me multifamily was the way to go. The cash flow it offered was great for the price and I house hacked it as well. If it's possible I'd HIGHLY recoend house hacking, especially if it's your first investment. It was the perfect way to learn how to be a landlord, helps pay off your mortgage, and offers very powerful loan options if it's your primary residence. One thing to keep in mind though, single family tend to have longer occupancy rates than multifamily, at least that's how it is in my area. With multi-family you'll likely have higher chances of turn over. But if you plan for vacancy ahead of time it's a non-issue!

Hi Blake! What you're doing is a great first step to better understanding the market. When I first started out all I would do is analyze properties as they came onto market via Zillow. I ended up creating my own spreadsheet of market properties and kept updating it each and every day. Overtime you'll begin to develop a much better hold on the area. 
As far as metrics go, one of the most important in my opinion is the days it sat on the market. If properties are only last a few days then it's an indication the market is hot. If you begin to see properties stay on the market for weeks at a time then pricing was pushed too high or the market will appear to be cooling off. It won't always be a clear indicator, but it will always be an important metric to keep an eye on.
Feel free to reach out if you'd like to talk more, I'm also from the Springfield area and love talking about property analyzing!

@Daniel Dulebohn Hey Dan! I've been investing in multifamily for a few years here and am an agent as well. I'll shoot you a message if you'd like to talk more!

@Dalan Heredia Welcome to BP Dalan! I'm a local investor in the Springfield area. While flips aren't my field of expertise I'd love to meet up with you and learn about what your goals are in the investing in real estate. I'm currently focusing on multi-family but am also looking doing a potential flip or BRRR. There's also a real estate agent investment group here that would be great for contacts! I'll reach out to you and share more details!

@Joshua Kelley I'm a local investor in the Springfield area, I'd love to connect with you! I'll DM you.

Unfortunately this lands on Father's day and I'll be unavailable this weekend. But I hope to catch this event next time! Are these certain days each month or do they change dates each time?

@Levi Skinner Hi Levi! I'm a local investor as well, focusing on multifamily properties. Welcome back to the forums, I'm always excited to see people in the Springfield area being active on here! I would love to get connected with you!

@Robby Williams Hey there! I'm also from the Springfield area. In my opinion I would strongly suggest house hacking a 2-4 unit building. I've been house hacking a duplex for 3 years now, and it's honestly been one of the best decisions I've ever made. I've been keeping an eye on the market and I've seen a few multifamlies come up that could offer potential cash flow. I feel like this option is better than just living out in a camper. At least this way you have more of an actual "home" and once you move out you can rent out the side you were in. I plan on moving out this year and potentially finding another Multi-Family to house hack! Just make sure you know your numbers! Hope that helps!

I'm recently started investing in Ozark, MO. Currently in the Multi-Family business. Looking to branch out to find opportunities as well as meet up with more local investors, landlords, or lenders and get more familiar with the people and area! I'd love to grab lunch and meet some new faces!