DJ Quarles talks and walks with local investor Jeff Moore, who has bought and renovated over 200 houses! Where many people see a challenge, Jeff sees and opportunity.
DJ: Alright Jeff so share with me a little bit, how’d you get started in real estate?
Jeff: Yeah so I came to Lexington for college, and after a year that I decided I didn’t want to pay somebody else’s mortgage so I bought a duplex lived in one half and rented the other out.
DJ: What’s up everybody it’s DJ Quarles the Real Estate Savant, in this case I’m gonna have to relinquish that title because I have a true savant with me today, Jeff Moore. Jeff here has been involved in over 200 transactions in the past two three years?
Jeff: Four or five, yeah.
DJ: For five years 200 transactions. Where many people see a challenge Jeff sees an opportunity. So what do we have here?
Jeff: So this is a shotgun house on 7th Street. When we got it it was totally gutted there was nothing but studs on the exterior walls, there was a naturally occurring skylight from from Mother Nature, the roof, the reparative floor joist and it was literally a shell of a house. You could see the dirt under the floor joist. So we come in put it back together. So we’ve got a two bedrooms, one on each end of the house, and then this is kind of the kitchen combo. We try to make for efficient use of space. So rather than put the HVAC units up in the attic or in a closet we try to make a new wall and you know put them above something. In this case you know we’re putting on the shower to conserve space. We do a lot of other things to try to conserve space. We use tankless hot-water heaters, stackable washer/dryer. So this will be a stackable washer/dryer and it will have a tankless hot water heater. A lot of times what that lets us do is we can get another shower in a house, so we can be you know two full bathrooms instead of one or one and a half and the tenants can get a lot more bang for their buck. This is actually going to be an affordable housing requirements. So we can help keep the neighborhood affordable for people and providing with a really nice product.
DJ: That’s awesome. What are some of the differences between going through this as a project that you plan on renting out versus one that someone is looking to flip?
Jeff: Right. With a flip people are generally incentivized to get the job done for as little as they can to make as much as possible which that’s fine you know people have to make money and you know that does a lot to revitalize housing stock, but where I keep these as rentals I don’t want to have to get calls to come back and fix stuff. This is not what I want to do. It doesn’t make for a happy tenant and it just winds up costing me more money than if we just fix it the first time.
DJ: So what you’re saying is when you plan on keeping one as a rental you actually go in and use better grade material.
Jeff: I try to. that may not be what other people do but that’s that’s what I have made the decision to do. You know the hardwood nail down flooring we use, you know the cabinet’s that we use in all our rentals, there’s no particle board anywhere in these. You can see here that they’re dovetail for the woods so this is not something that you would get off the shelf at Home Depot. Another cool thing is that they have a slow closed hinges on them but you know these things will not disintegrate on you.
DJ: You’re really giving people, providing people with a very nice home under an affordable price.
Jeff: Yeah trying to.
DJ: That’s amazing
Jeff: That’s another thing that I really like is that we try to be pet friendly. We put dog bowls in all of the houses right here and that’s just the automatic filled dog bowl. I’ve got three dogs and I have not once had to fill up their water bowls since i’ve got them.
DJ: So Jeff, you’re also one of the first to actually see the opportunity to invest in this area. What caused that?
Jeff: Well I thought it was just kind of an underappreciated part of town. You can get a whole lot of house for your money and rent out the the dwellings and actually make some money to reinvest and kind of do the next one. So that was kind of my dream was originally was the rent multiples. But you know culturally this is a really rich area too. It’s very convenient. I just think with the infill that the city government is you know kind of forcing everybody to do this area will do well over time. Location-wise it’s really convenient to downtown, restaurants, bars, all sorts of places here for entertainment. Things like that. Very walkable with a lot of jobs and stuff as well.
DJ: So whether you are looking at an investment property or would be buying your first home you usually like this this part of town.
Jeff: Oh absolutely, absolutely. Especially with the opportunities in legislation that’s out there right now. It basically dictates it’s a favorable tax treatment over here and by the way the legislation is worded is, you have to invest a lot into the house and to to make it economically viable and make it last a long time and it also helps you can make it affordable as well which we are which we’re doing a lot of.
DJ: Alright Jeff, thank you for your time. Of course as always follow us across all social media platforms at 411LEX me personally at DJQuarles_ thank you all for tuning in, see you next time!