DESIGN POINT
Exterior after
RENOVATION ROCKSTAR
When Hatley and her partner and husband, Jason, walked inside for the first time, they discovered that the house had been heavily soiled by pets, neglect, and general age. During the cleanout process, they also discovered a mysterious hole in the basement (neighbors later speculated it might be a “mob tunnel” once leading to the base- ment of another nearby residence), false ceilings covered in “gold, sparkling popcorn” that, when removed, revealed a second layer of kitchen cabinets extending upward into the (newly revealed) 12-foot ceilings, and a family treasure trove of archives that descendants of the owner returned to collect with gratitude. “It was definitely an adventure,” Hatley said. “And that was before we even started the renovation.” Although the investors had originally intended to renovate the property as a small multifamily rental, Hatley soon discov- ered her plans would have to change. “We found the house had multiple additions. This meant the exterior walls of the house were 12-inch brick walls and, in some cases, interior walls were
the same. “There was no good way to reconfigure the rooms, which had been used as multifamily previously but were very awkward as they were,” she said. There were also some historic elements that led to Hatley to believe that the home would be better suited to either a single-family residence or, as she ultimately decided, an Airbnb rental that the investors may, at some point, sell at retail. “The house had this gorgeous staircase and that incredible kitchen. We were going to lose them if we made the property multifamily,” Hatley said. “The area is definitely a good rental neighborhood, but we felt like keeping the history, the story, and the residence intact was ultimately our best option. This is a neighborhood where people don’t leave. They live here forever. We knew it was an emotional gamble, but it was the right deci- sion for us and the property. We are now stewards of a piece of historic Kansas City." The former owner had paved the backyard, but Hatley knew resi-
Layers of History “MOB” TUNNELS, FALSE CEILINGS & AN INCREDIBLE BACKSTORY BUILT THIS PROJECT.
Featured Investors: Malia and Jason Hatley, Hatley RE Investments
Backyard after
hen Malia Hatley bought a 130-year-old brick house in downtown Kansas City, Missouri, she was defi- nitely interested in the property for the location. “That area, Columbus Park, is really close to the downtown area. It’s full of restaurants and entertainment, a vibrant community, and, I admit, I already had one project that I’d bought about four months previously that was right behind it. We were reno- vating it as a duplex, and it was chugging along just fine,” she recalled. Then, she laughed. “I thought it would be so conve- nient. Instead, it just meant any given tool someone needed was at the other property every single time!” Despite her wry sense of humor about the project, Hatley had a passion for the property from the very beginning. “I had done an extensive amount of research about the house before the auction, including talking to all the neighbors and learning about the previous owner, who had died,” she said. “We had a pretty good idea of the history, but we hadn’t yet been inside when we started bidding.” This is not particularly unusual in this type of circumstance, so, Hatley noted, “We assumed we would have to replace everything.” It was a good thing she did. W
PROJECT NOTES:
Built in 1890 4 bedrooms/4 bathrooms 3,010 square feet
Original floors and staircase Kitchen with 12-foot ceilings Purchase Price: $ 122,000 Rehab & Carrying Costs: $ 200,000 Appraised Value After Rehab: $ 468,000*
*Because the neighborhood is dominated by multigenerational households and rentals, comps for Hatley’s property were nonexistent. This is one reason the Airbnb strategy is a good one, as it enables her to wait for other, truly similar properties in the area to change hands before she sells.
Backyard before
Junk cleanout
14 | think realty magazine :: november 2018
thinkrealty . com | 15
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