Cody Davis update - at HEAVY renovation Project

When Multifamily Strategy was founded, Cody Davis was my partner. So the two of us started this wholesaler finance journey in Grant County, Washington. I'm back in Grant County today with Cody at his latest acquisition. Let's see what he's been up to. He just bought this 5-unit building for $115,000. It may need a little bit of love. We got this beautiful piano that comes with the building, basically in tune. He is doing a huge rental project on this, then he is selling this rent ready. So he is going to get this thing completely turned around. Him and a partner bought this bad boy in cash, so he has no debt on this thing. So they're going to sell it for somewhere around $300,000 to $350,000 when they're done. So pocket a neat $100,000, but they have some work cut out for them. My goodness.

All right, on with the tour.

Look at this place. This is awesome. So down to the subfloor in a lot of the units, some drywall repair, but the actual design of this is really cool. This is mixed-use retail and residential, so this is one of the residential spaces here on the side, but this is a lot of project. Cruising down here, here's the basement.

What? Okay.

Obviously no reno needed down here. This is rent ready. Cody will actually be moving in in two weeks. I'm kidding, I'm kidding.

All right, we're on Cody's latest acquisition, this beautiful basement here.

Welcome home.

Building above this, but, uh, Cody, tell us about your project.

Well, I bought this basement for $115,000 and it has a sixplex above it.

There we go.

Move-in ready.

Gross.

The spiderweb caught the wire.

Oh no, no.

What is the— what is the vision for the basement?

Either gonna wall it off for storage units or get approved to add a unit. I probably won't be the one doing that project though.

Nice. What was the debt on this project?

There is zero debt.

That is in budget. How much did you spend? Acquiring this?

$0. I got paid $2,000 in commissions.

That is also a budget.

Free real estate.

So you are the broker and the owner?

Oh, I'm sorry.

It's okay, we didn't need that.

Just turn it off when you're done. Yep, broker and the buyer.

So is this all residential here or is this retail as well?

We have 2 retail spots. A hole in the ceiling. That happens. Another hole in the ceiling. That also happens. It's wet. All right, apartment number 2. This is a 1-bed, 1-bath. Needs a closet. Otherwise, ready to go. Don't forget to paint the outlets. We're gonna do new LVP. Oh yeah, open concept plumbing.

He's awesome.

We're gonna paint this, new fixtures. Cabinets are actually decent. We'll do new LVP throughout, new outlets. Not too shabby for $115K.

No, not bad at all.

The land right there is listed for like $199K.

What is the, uh, what's the final sales price for this bad boy?

I think it'll appraise between $375K and $425K, but I'd sell it for $300K because 1031 into something new. Well, check out the laundry room.

What things are you 1031ing into now?

Brand new apartments and townhomes.

Oh, that's cool.

Yeah, needs a little love, but in a month and a half, these will be rent-ready.

Oh, that's cool. How do you organize the crew for this type of project? Because that's not a huge rental budget for the amount of stuff to get done.

This wasn't here when I bought it or when I went under contract. I didn't do that. What was in here? Yeah, I'm pretty confident that that wasn't like that, or maybe the door wasn't on, I don't know. Uh, organizing the crew, just establishing what needs done and then figuring out who's gonna get it done the quickest for the best price. So we'll have David come in and paint all this. I'm gonna have to scrub down these walls though. Someone smoked bad in here.

Yeah, just a little bit of, uh, Clorox should clear that right up.

And then all this land's included, and I gotta cut that down. I am a tall man. Kitchen, living room. This actually might— this is actually a bedroom. That's the living room. The weird thing about this apartment though, you got the bathroom and then there's another bedroom, so that is unfortunate. Probably gonna just chop this off and make it storage.

What is going on with the 4 water inputs?

To our city and to our lake. You have lake water for healing properties, and, uh, it's supposed to be really good for your joints. So this actually runs to the lake. Are all the tubs like that? Uh-huh.

That is cool.

That— it is actually very cool.

Yeah, tell us a little bit about Soap Lake.

It's full of soap. Uh, it's a touristy town. Not a whole lot going on. People live here and commute to Ephrata. Lots of leaky ceilings, but very old town. I think this building was built in the '20s. You guys want to check out upstairs? Upstairs is one of the nicer units. Yeah, this was built before all of us were born combined.

Oh, this is cool.

This is very cool.

Is this where you're moving?

This is where someone's moving, not me. Gonna do all new floors. It is very big. Yeah, this is a 3-bed, 2-bath apartment. So this is a standard tub, and then you got the lake water tub over here. Ta-da!

That is the wildest thing.

It's kind of cool.

How does that do on the plumbing? Isn't all the healing properties from the sediment in the lake? Does it get a bunch of gross?

I don't know. I don't want to know. But I was told by the mayor and his local, uh, associates that they think this is going to rent for $1,800 to $2,000 a month. Very—

this is about as close as you get to a penthouse in Salt Lake.

Yeah.

Yeah, hornet problem actually.

Those aren't bees. I'm aware. Or wasps. They're outside, right? No, no, they're on the inside. Where are they at?

Right there, glass door.

Oh, they're playing around. No, there's a box.

Damn, I suppose that does happen. Not here, don't jinx it. That's only at your properties.

This is actually pretty nice up here.

Yeah. Something you guys probably didn't hear, but all the bathtubs here have Soap Lake water. They have connections for the Soap Lake water. It does what it wants. This was built in the '20s.

Oh, this is so cool. Yeah, I love that claw tub.

Oh yeah, do you see the one downstairs?

No, you probably could sell that.

Well, Soap Lake water and property water, so it's kind of fun. Oh, either or. Yeah, then the beautiful lake with all the wasps— or the roof, not lake. One of them.

I imagine the way that it's built, it looks like it could become a lake.

It in fact does. Oh yeah, those open for ventilation from the inside. Oh yeah, and then there's a way down from up here. It's kind of fun.

All right, we're on Cody's latest acquisition. This beautiful basement here.

Welcome home.

Building above this, but Cody, tell us about your project.

Well, I bought this basement for $115,000 and it has a 6-plex above it.

There we go.

Move-in ready.

Gross.

The spiderweb caught the wire.

Oh no, no.

What is the, what is the vision for the basement?

Either gonna wall it off for storage units or get approved to add a unit. I probably won't be the one doing that project though. Nice.

What was the debt on this project?

There is zero debt.

That is in budget. How much did you spend acquiring this?

$0. I got paid $2,000 in commissions.

That is also in budget.

Free real estate.

So you are the broker and the owner?

Oh, I'm sorry.

It's okay, we didn't need that.

Just turn it off when you're done. Yep, broker and the buyer.

So is this all residential here or is this retail as well?

We have 2 retail spots. A hole in the ceiling. That happens. Another hole in the ceiling. That also happens. It's wet. All right, apartment number 2. This is a 1-bed, 1-bath. Needs a closet, otherwise ready to go. Don't forget to paint the outlets. We're gonna do new LVP. Oh yeah, open concept plumbing.

He's awesome.

We're gonna paint this, new fixtures. Cabinets are actually decent. We'll do new LVP throughout, new outlets. Not too shabby for $115,000.

No, not bad at all.

The land right there is listed for like $199,000.

What is the, uh, what's the final sales price for this bad boy?

I think it'll appraise between $375,000 and $425,000, but I'd sell it for $300,000 because 1031 into something new. Well, check out the laundry room.

What things are you 1031ing into now?

Brand new apartments and townhomes.

Oh, that's cool.

Yeah, needs a little love, but in a month and a half, these will be rent ready.

Oh, that's cool. How do you organize the crew for this type of project? Because that's not a huge rental budget for the amount of stuff to get done.

This wasn't here when I bought it or when I went under contract. I didn't do that. What wasn't here? Yeah, I'm pretty confident that wasn't like that. Or maybe the door wasn't on, I don't know. Organizing the crew, just establishing what needs done, and then figuring out who's gonna get it done the quickest for the best price. So we'll have David come in and paint all this. Gonna have to scrub down these walls though. Someone smoked bad in here.

Yeah, just a little bit of, uh, Clorox should clear that right up.

And then all this land's included, and I gotta cut that down.

For those who don't know, Cody is 6'7". Those weeds are almost as tall as him.

I am a tall man. Kitchen, living room. This is actually a bedroom. That's the living room. The weird thing about this apartment though, you got the bathroom and then there's another bedroom. So that is unfortunate. Probably going to just chop this off and make it storage.

What is going on with the 4 water inputs?

2 are city and 2 are lake. You have lake water for healing properties, and, uh, it's supposed to be really good for your joints. So this actually runs to the lake. Uh-huh.

That is cool.

That is actually very cool.

Yeah, tell us a little bit about Soap Lake.

It's full of soap. Uh, it's a touristy town, not a whole lot going on. People live here and commute to Ephrata. Lots of leaky ceilings, but very old town. I think this building was built in the '20s. You guys want to check out upstairs? Upstairs is one of the nicer units. Yeah, this was built before all of us were born combined.

Oh, this is cool.

This is very cool.

Is this where you're moving?

This is where someone's moving, not me. Going to do all new floors. It is very big. Yeah, this is a 3-bed, 2-bath apartment. So this is a standard tub, and then you got the lake water tub over here. Ta-da!

That is the wildest thing.

It's kind of cool.

How does that do on the plumbing? Because isn't all the healing properties from the sediment in the lake— does it get a bunch of gross?

I don't know. I don't want to know. But I was told by the mayor and his local, uh, associates that they think this is going to rent for $1,800 to $2,000 a month. Very well.

About as close as you get to a penthouse in Salt Lake.

Yeah, yeah, hornet problem actually.

Those aren't bees, I'm aware, or wasps. They're outside, right? No, no, they're on the inside. Where are they at?

Right there, last door.

Are they paying rent?

No, there's spots.

Damn, I suppose that does happen. Not here. Don't jinx it. That's only at your properties.

This is actually pretty nice up here.

Yeah, something you guys probably didn't hear, but all the bathtubs here have Soap Lake water. They have connections for the Soap Lake water. It does what it wants. This was built in the '20s.

Oh, this is so cool!

That was not original.

I love that claw tub.

Oh yeah, do you see the one downstairs? No.

You probably could sell that.

Well, Soap Lake water and, uh, property water, so it's kind of fun. Oh, either or. Yeah. Then the beautiful lake with all the wasps— or the roof, not lake. One of them.

I imagine the way that it's built, it looks like it could become a lake.

It in fact does. Oh yeah, those open for ventilation from the inside. Oh yeah, and then there's a way down from up here. It's kind of fun.