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Real Estate Investing School Podcast
64. The Power of Vision: Expanding Options in Real Estate Investing
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- [00:00]
A
Welcome to the Real Estate Investing School podcast. I'm your host, Joe Jensen. Our guests, plural today, is Kelly and Anthony Frost. So after years of trying to figure out how to get out of the rat race, Kelly and Anthony accidentally stumbled into real estate investing. Along with their three kids, Kelly and Anthony are tackling a live in flip. This DIY couple isn't afraid of hard work and putting in the times. They can create the life of their dreams. Welcome, Frost. How are you guys?
- [00:37]
B
Thanks, Joe. We're doing good.
- [00:38]
C
We're excited to be here.
- [00:40]
A
Awesome. Well, I'm excited to be able to chat with you. I actually had the pleasure of meeting Anthony at his work. We were doing this out, you know, in the mountains, doing these climbing ferratas and climb repels and all this gnarly stuff, which he's the pro at. And that was super, super fun. So, so, but I, I, and I think I met you at the cash Flow conference as well, Kelly. So it's cool. I'm excited to dive into your story as opposed to just kind of the casual meeting.
- [01:13]
B
That was a lot of fun at the ferrata, Joe. I just lined up perfect. I, it popped up on the schedule and I thought, I gotta go because it's.
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A
Yeah, yeah.
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B
I was invited to, by any means to go.
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A
You're like, I'm coming.
- [01:27]
B
That's a once in a lifetime. I gotta jump on this.
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A
Yeah, it was, it was cool. We had like all the coaches there and Brody, and it was awesome. I'm glad you're able to make it. Well, let's dive into it then, you guys. So you say there in your bio that you kind of accidentally stumbled upon real estate investing. So tell me and tell all the listeners a little bit about how that happened and what you mean by that.
- [01:51]
C
Yeah. So back in 2019, the kids were super, super restless and they just needed to get out of the house. And so it was rainy and we were like, let's just go for a drive. So we went down this road, it turns to a dirt road and so it's not a super popular street. And we see this house and it is just covered in dead trees. There's chain link fences, there's no trespassing signs all over the place. And I was like, what about that house? And Anthony was like, what about it? I was like, is it for sale? Is somebody living there? And he's like, the old lady died in December. And I was like, sweet. And so I'm like all excited, like, what is she thinking?
- [02:41]
B
And I'll tell Him. Why? So we had bought our first home, and we were six years into this home. We had just finished completely remodeling this home we were in, and I didn't want to take on another project.
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A
Yeah, yeah. She's thinking all this real estate stuff and you're like, dude, six years in, we're just finishing up. I don't want to go more like, what are you doing?
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C
It was a pretty red brick house. It's on an acre. It. I was just like. So we asked about it and family showed us the house and they were like, but we don't own the house. And I was like, okay. The guy that owned the house, he. It was his great aunt's house and he signed papers and had her sign them. So that way he got the house when she died.
- [03:38]
A
Gotcha.
- [03:39]
C
Family was super mad about the whole ordeal and we were like, okay. So they're like, if you, you know, reach out to him, don't tell him you know us.
- [03:51]
A
Yeah.
- [03:52]
C
So we. We sent a snail mail, snail mail letter out to him. And we were saying, hey, are you interested in selling your house? And he's like, actually, I am. And so that was kind of the beginning. And when I said we accidentally stumbled upon it, we had walked through the house, and it is a three story red brick house. Eleven bedrooms, three kitchens, three bathrooms with eight exterior doors. To get into this house, it was.
- [04:28]
A
Like a whole complex, like a compound.
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B
It was set up like a triplex, basically.
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C
And so I'm like, if we go for this house, like, we don't. We're not going to fill the house with that many kids. I'm like, how could we use this? And so that's kind of when we started thinking about real estate investing. And then as we're trying to get under contract on this house, we find out that there's what's called a Les Pendant on this house. It's like a lien. But the family, he doesn't have a clear title until this Les pendant gets cleared. And we did our due diligence, and since family didn't like this guy, they're like, we're not going to sign it for him, but we'll sign it for you. And we told him, we're like, hey, we will deal with all of the legal stuff and get this Les Pendant cleared, but you'll have to come down on price. And so we talked him down 40,000. And little did he know that it was only a $75 recorder's fee at the county office to get the House. But we had done our due diligence beforehand and knew.
- [05:42]
A
So, man, I have so many questions. So that's super cool. So first of all, so you saw the place and you guys are interested in it, but you weren't thinking real estate investing at the time. You were just thinking, ooh, a n brick home on an acre. Like, I want more of a. Of a personal residence. And then it was. Had such a unique option. You're like, what do we do with all this? And that's what kind of got your brain thinking about the real estate investing side.
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C
Yeah. And then when pendants, like, we didn't know what a Les Pendant was. And so.
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A
Yeah, so break that down. How did you find that out? Like, how did you even find out it exist that there was one at all? And how did you learn what it was? Like, walk us through the steps. Because I'm sure most of lenders, even a lot of experienced listeners, are like, what are they talking about?
- [06:30]
B
I think we had a lot of connections and they helped us a bunch. So the small town people work in a bunch of different places. And it turned out that the neighbor down the street, he ran the title company. Nice talk to him. And he was able to give us the. The history of the home and the whole breakdown of. And then he walked us through it. He told us, he says, this does not have a clear title. This is a les pendant. I'm like, what is that? And so he was like, kind of a coach in that area. He's like, sure, and this is what you need to do to clear it. And this is what has to happen before it can be purchased, because that cannot be on the title.
- [07:11]
C
Well, we were also buying this house without a realtor. And so for me, that was like, if I'm gonna sign this contract, I better know everything that's in it. And so I found bigger pockets. And so I listened to all of their podcasts at that point, and that was kind of the start that I was like, hey, this house is going to be an investment property and not just a.
- [07:35]
A
It's hard not to listen to all the podcasts and not have a fire into you to do something. It's like you keep listening to them and you're like, I gotta do something. Like, it just lights a fire. So can you explain to us in your best wording what a Les Pendas is?
- [07:55]
C
So in our case, what it was is our house is three stories. It was built for each floor. There was three sisters to live on each floor. So they were separate Living quarters, but still living together. And so when family. Or when the. Sorry, I'm not explaining this very well. When the lady died, family felt like they deserved part of the money of the house because that was their aunt or their relative. And so it's when family is essentially arguing over or anybody arguing over that they. Yeah, part of that. That equity in the house.
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B
So they're claiming ownership, and they're putting a lien on the property. Basically.
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A
Yeah. So basically, anytime that there's, like, legal action, there's any sort of, like, lawsuit or conflict, if there's like, you know, it could even be, like, maybe even a contractor's lien lawsuit that's blown up. Like, whenever there's legal action tying it up, that. That's basically what a list Pendants is. And, you guys, it was this. This whole family ordeal because. Take a step back, because I'm just really interested in the details. Sometimes we, you know, we go over things so broadly, but I love to dive into the details, so. Because if you take step back, the guy that actually owned it, he was he family as well. You said it was like an uncle or something who ended up getting it when. When she died.
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C
He was a nephew.
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A
A nephew. Okay.
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B
He was overseeing all of the sisters or his aunts, all of their finances. And in doing so, he wasn't doing things the most honest way. And that's where he had them sign the property and into his name. And so the family wasn't very excited about that, and they thought they had lost control of it. And so their only control left was to put a lesbian attach him to it so that he could basically not do anything with the property until they gave him permission.
- [10:13]
A
Gotcha. Gotcha. So he gets them to put it into his name. The family's fighting it. They're like, that's not legal. You did this wrong. And then, so he gets tied up in a lawsuit, and then you guys go to him like, hey, we want to buy this now. And he's like, shoot, it's tied up in a lawsuit. I don't know what I can do with it. Like, yeah, if you'll deal with that, you get $40,000 off, and he gets to wash his hands of it. But you already talked to the family, and they're just like, dude, we'll. We'll erase it for you. We don't care. We just don't want to give it to the shady nephew still in the. The aunt's house. Yeah, that's great. What? What? And you had no idea going In. That's the funniest thing is you're going in like, oh, it's a brick house. And then it's like you learn all this.
- [10:56]
C
Yeah, that's cool. From the time we looked at the house until the time we closed, we waited 15 months. 15 months getting everything cleared, getting all the signatures.
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B
And he was being really hard headed and he didn't want to work with us very much. And so we just pulled out. He wanted as much money as he could get. He didn't realize that. And there was no competition. We were the only ones asking about it. I mean, he was claiming there were competition, but we there wasn't.
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A
Yeah, like, no one even knows this thing exists. Dude. It's on a back road, hidden. Like it's not listed. Like.
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B
Yeah. So the first we were working for, I think about six months with him wasn't going anywhere. So we just pulled out and left. And it was not quite a year had passed. And he reached out to us again and he realized that we were the only ones interested and maybe his only option to get out of it. And so he came back to us. And then it's like, all right, now the ball's in our court. If you want to work with this, this is how it's gonna be.
- [12:06]
A
That's cool. No, and that's awesome. Like, it just goes to show, like I tell people all the time, like, man, you need to keep lots of, you know, what do they call it? Fires going at the same time, lots of, you know, pans on the oven. I don't know what they say, but, you know, you want to have a lot of things going at one time when it comes to real estate investing, because these things can take so long. Like I said, your guys took over a year, almost a year and a half, you know, and it's like, you know, if you're just like putting all your eggs in this one basket, like, this is our real estate investing. We're just doing this one thing. It's like, dude, what? The next one takes a year. You know, that's a slow road. But if you got four or five things going at once and one falls out and one falls out and one takes a year and one takes three months, then you're actually getting a lot more done. And it can be overwhelming for the. Especially for the beginners that are coming in. They're like, I don't want to take off multiple things at once, but it's like, you're probably not going to because most of them won't work out and the ones that do will drag out and. And so you really probably will be biting off less than you think you're biting off, even if you're trying to take down, you know, four or five things at once. But that's cool. So you guys, you found this. You. And you guys are pretty handy. You said, you know, the first house, you'd spent, you know, years remodeling it, doing it all by hand, doing it yourself. So you weren't afraid of a little fixer upper, it sounds like.
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C
No. So not only did we. We bought this house as is, but it was clear full of stuff.
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A
3. Three people's worth of stuff, right?
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C
Well, yeah, they're all hoarders. And so we had oh geez stories, a walk in attic, a double light, a greenhouse and three sheds and a root cellar to clean out.
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B
And the building we're in right now. Yeah.
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A
Wow. So there was a double wide trailer as well, a greenhouse and another structure that you're in.
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C
Yeah. Yep.
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A
Wow. So what's the structure you're in? Just like an out shed or something.
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C
They used it as a canning kitchen and it's a two story building and below they used it for like their cold storage, for their onions, those carrots. And we have actually turned it into our home gym. So our gym is outside of our house.
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A
But that's awesome.
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C
It's probably like 15ft wide by 30 something feet long. So it's a good space.
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A
That's really cool. Yeah. So you got a lot of bang for your buck on this. So what's the game plan then with it? So you saw these options like dude, some we don't need all of this. We could probably house hack. As you're studying the bigger pockets and all the podcasts and books, what's the game plan then with it and how far have you got on the game plan?
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B
So right now the game plan is we are living on the main floor, which is technically considered the second story. The basement is finished and it's on Airbnb. And the upstairs is going to be finished and is possibly going to be turned into a midterm rental or employee housing, I guess.
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A
Sure.
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B
There's also right where the double wide was at those that area has its own utilities and so we want to actually divide the property. There's enough real estate that we can divide it because the building that we're in right now is technically considered the ADU for the home. And so there's building ability on the property unless we divide it and there's enough room so that the home and the ADU and the whole property can separate. We can start building some more, and we can utilize those extra utilities.
- [15:56]
A
That's cool, because so could each parcel has so much building capability. So what you check with the zoning, it sounds like in your area, and they said each parcel you can do what, like a main structure, an adu, and a barn or something like that? Is that kind of like what's the zoning allow in your area for each parcel?
- [16:15]
C
Yeah, so it's considered an ADU if it has electrical and culinary water, and our building does. And so it's considered an ADU even though it doesn't have, like, a bathroom or anything in it. So for us, it makes sense to split the property. Back in 2020, we actually sold that double wide to pay for our kitchen cabinets.
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A
Nice.
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C
The guy hauled it off himself, but yeah, so that's our future project. We're two thirds of the way done with this house on our future project will be to build a duplex. Build the duplex, live in one side, rent out the other. So we'll just be continual house hackers.
- [16:57]
A
Yeah, there you go. So that's the idea, is to parcel it out and then build a duplex on the extra parcel once it's its own lot, because then you can build on it again because there's not too many structures on one lot. That's cool. And now, Craig. Oh, you had something you wanted to add.
- [17:13]
B
So the duplex, we're going to live in that while we're renting the home three different ways, and then we're gonna step from there into our next home. Like, hopefully we can build a home, but, like, the duplex isn't our end game plan. Like, it's gonna be rented two different ways eventually as well. We want to separate ourselves from this property because there's gonna be a lot of noise on this property when we're all done. There'll be a lot of people on it.
- [17:39]
A
Sure. Yeah. That's cool. So, I mean, when you're. When you're all said and done with this project, you're gonna have five doors you're renting out, and, you know, short term, long term, midterm, all from this one deal.
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C
Yeah.
- [17:55]
A
That's awesome, man. That's cool. That. That's super exciting. So when it comes to the zoning of the land. Did you check with zoning and they said, like, how much. How big an area can be? Because I know there's certain, like, minimums of how much you can split it apart, you know what I mean? So how much acreage did you have and what's the minimum size of a parcel in your area?
- [18:22]
C
So we have an acre and our, the main house is kind of built right in the middle of the whole acre. So yeah, that's how it goes. And so we're gonna divide it so it'll be like a third and two thirds. But the town, I started going to all of the planning and zoning and the town. And so I'm there every, every month even if I'm not on the agenda. So I found out that the depth of the property needs to be 80ft deep, minimum. And then, you know, from where you want to build to the fence line, you know, they have all their different measurements and stuff.
- [19:07]
B
It's 80ft of roadside access. And so our property is over 200ft wide of roadside access. So that gives us plenty of room to divide it into. And then you just have your offsets between the buildings.
- [19:26]
A
Yeah, see, I just think that's cool for people to hear because it's like, there's a lot of details. Like I said, I was. And again, I was just thinking, oh, parcel size. Oh, if, you know, if it's two acre minimum or whatever, you know. But you guys like, well, it's not just that. It's. It's frontage road and setbacks and where you can actually build the structure. So according to all of these little random things, these are your only options, right? And it just goes to show, it's like, just go talk to the city, show up, talk to zoning and planning, like, figure out what the details are in your area. And it might feel overwhelming at first, but once you've done it, it's just like, okay, so this is what it is. And, and then you'll know your options. And so many times people are a little, I guess just overwhelmed or intimidated because they don't want to look stupid and be like, I have no idea what I'm doing. And it's like, but if you do that, then you'll, then you'll learn all these little details. And it's, it's like, it's not as bad as it seemed on the surface is what I've found. Is that kind of how you guys have felt as well.
- [20:21]
C
Once you dove in for me, it was like with the title company when they were helping us with the house, I was like, they're getting paid to help me. Like, I don't know what I'm doing, but they're getting paid to help me. And so the same with, like, for the town. I'm like, you guys are on the town board to help me. You guys are on planning and zoning to help me. And so, yes, that way you're like, I don't know everything, but we're gonna figure it out.
- [20:48]
B
Yeah, you can ask them the hard questions and they have to answer it because they're getting paid to learn those responses.
- [20:55]
A
Dude, I love that attitude. Like, it's just like, especially with these public service people, you know that we're getting paid with your taxes. It's like they're. You're literally paying them to work with you. It's like, there's your coaching people, you know what I mean? Like, go call the title company if they close the deal. Like, I love that. Like, they are getting paid, especially the city town hall and all that. And they're cool. Like, almost every time I talk to them, like, they're happy to break it down for you. They're happy to actually. What they don't like is people are trying to skirt the laws and fight with them and battle them. Like, that's the headache person. You trying to figure out how to do it right. I almost never get any pushback or resistance. When I'm like, hey, I'm really trying to do this right. Will you teach me how to do it right? They're like, yeah, for sure.
- [21:40]
B
We've made advances a lot faster when we just swallowed our pride and asked the question. Don't try to figure it out in silence on the Internet Googling it. Just find the right person and ask them.
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A
Yeah, there's so much power in that. And I always say, like, find what the city wants, find what the county wants, Find what your state is pushing and be aligned with that. If you can do that, it's going to be a. It'll be a downhill battle. Like, it's easy. It's just like here, just slide on down. But if you're trying to go against what the county wants and against the city and you're like fighting, you know, sometimes there's a place for that if you got a big pet project and you know it'll kill. Like, you gotta fight the good fight, but if you can avoid that, it's just gonna be so much easier. And so, yeah, that, that's super cool that you guys dove in and, and figured all that out. And like I said, just feel stupid. It's okay to look dumb, man. Like, I've been doing this for years. I've done a lot of projects. Like, I'VE done a. Bought a lot of things, and it's still. I feel like every week I'm like, I have no idea what that means. Can you explain that to me? How does this work? Like, there's so many little nuances, and every county's different, and I buy all over the country. So it's like every state has its own rules. It's like there's so many things to learn. It's like you just got out. Humble yourself. Just not worry about trying to look smart or cool. It doesn't really matter. I love that. So that's cool. So you got. What made you guys. So you. You bought the first house, you remodeled it, and then you.
- [23:14]
B
You.
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A
You had the guts to pull the trigger. Did you sell that one, or did you keep it as a rental, or did you end up selling the first home you bought?
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C
It's our biggest regret.
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A
Right?
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B
I think I wish we would have been in the school or at least talked to somebody that knew more about real estate before we moved on with this home. Because we did sell it. We fully cashed out, and then we partnered with my parents. They pulled a HELOC on their home, and we bought this entire house in cash.
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A
Oh, okay.
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B
Because of its condition, it was unfinished, and so it wouldn't qualify for anything but a construction loan. We thought, I don't know if we want to go through the hoops if we can qualify for this. Like, it's going to be a lot of money. It's not just the upfront. It's. It's all the estimates. Yeah. So, yeah, yeah, we. We sold it, but we're here. I mean, the podcasts talk about sometimes you sell an asset to get a better one. So we're going to look at it in a positive way, but we do regret selling our home.
- [24:19]
A
Yeah. I mean. And welcome to the club. You know what I mean? Like, I there. I can list. There's. That's how we all feel, you know, you're definitely not alone in that.
- [24:30]
C
The only nice thing is we sold it to a sweet young couple, and she sent me this spring a picture of the 300 tulips that I had planted. It was kind of bittersweet because I'm glad they're taking care of it. They love it. But at the same time, I was like, I wish I still had that.
- [24:49]
A
Yeah. Yeah. That's hard. Well, that's awesome that you guys did it, though. You know what I mean? You know, you're going to go from zero doors to five doors when this Project's all said and done and, and it's cool because you have this project. You know, you got, you got a lot of work lined up for you for ways to come. So what, what do you see as your next moves in? I know you guys are deep into your current stuff and getting this stabilized. You're already renting out one of the units as a short term rental. How's that going for you?
- [25:21]
C
We just got our first two five star reviews. So our first two guests left us two reviews already. So.
- [25:28]
B
Yeah. So it's.
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A
Oh, so it's just barely up and running. That's awesome.
- [25:31]
C
It's been a long time coming because we had to clean out the house before we could even start renovating it. And then we renovated it through the pandemic. I got pregnant, I had a little one. We have three kids. It's been. And it's just me and Anthony working on this place.
- [25:48]
A
Yeah.
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C
So it's been a labor of love, but it's coming and it's, it's. People are booking and May was booked almost completely solid and June and July is trickling in and we are getting a bunch of bookings for this fall. So it's working.
- [26:07]
A
That's awesome. That's great. I love it. So what do you see next on the path, besides maximizing this property, which you have so many options and we didn't even get into like, you know, doing a putting debt on it eventually. You know what I mean? Like, once it's all finalized, you get this new appraisal for double what you paid for it and you can pull out as much money as you put into it. I mean, you have so many options on the financing side, so you can dive into that if you would like. But also just wondering, like, what do you see as other future projects or directions you'd like to go?
- [26:43]
B
We have a couple of deals that we are focusing a little harder on right now. There's some pretty big deals, but I.
- [26:53]
C
Love the hospitality and short term rental aspect and I love designing. So we have our eye on a few projects that have a couple more units than this property. So that will be kind of fun if it, if it will all work out. But.
- [27:09]
B
Yeah, we want to branch out. But for now our plan is to stay local and we have quite a few options that are just. It's like those sneaky options that are right in plain sight that people don't even pay attention to. Like, we've talked to the owners and we're working things out, but eventually we are Going to own real estate away from here, and it's probably going to take us out of this town. Hopefully we can turn everything that we own here into management. Like, we can create a management company or we can turn it into an existing. Just to free up our time and step away and travel, get away from here a little bit.
- [27:49]
A
That's cool. And let's talk a little bit about where you're at, though. And I want to get the link to your Airbnb so that we can put that in the show notes as well, because you live in a really cool area of southern Utah. So what city are you guys in and why are people coming out to this middle of nowhere?
- [28:07]
B
So most people know if we reference the city of Kanab, it's a little bit bigger, it's a little more well known. But we're north of Kanam in a tiny little town called Orderville.
- [28:19]
A
Cool, Cool. So you guys are in this, this Orderville small town, southern Utah, surrounded by just the most crazy hikes and canyons and mountains and red rock and all of that. And so that's kind of the, the demographic you're tapping into, the people that want to go play in the wilderness. Yeah.
- [28:39]
C
Yes. We are 20 minutes from Zion National Park. We are an hour from Bryce Canyon, an hour and a half from the Grand Canyon, and just over an hour from Lake Powell. So we're right in the middle of all these major attractions. And so people that come through our area just love the outdoors and they just want to go and explore and have fun.
- [29:00]
A
Yeah, well, and you're that far, you know, that close to all these major ones. But then you're like 5 minutes, 10 minutes, 20 minutes from a ton of local ones also that are just as incredible as some of those major ones. And so, yeah, there's so much to do out there. It's super, super cool. And I think that's such a cool niche. It's. Sometimes I feel like people want to, like, I don't know, feel cool. So, like, oh, I want to do like, I do a lot of out of state investing. I think people think that sounds sexy and cool. Like, oh, that's so rad. You buy all over the country and it's like, I don't know, like, if it's really not cool, like, like if you find something that works, that's what's cool. And if you have this niche where you live in this small town and you can find these deals like this that are going to sit there, that no one knows how to maximize and you have this vision and you're seeing things that, you know, a lot of these people just grew up on a ranch. They live their life on a ranch and that they don't even think outside of. Like, I mean, I guess we could feed cattle on the land. Like, I don't know, you know, and you guys, you know, one, you gain the school. So you're students of the real estate investing school. You've met with coaches, you're studying a ton on your own. And so you're, you're expanding the options that you're seeing in, in a world where maybe not everybody's doing that. And that can be such a cool niche. It's like, maximize that and get it while it's good. And, you know, I think that's the coolest thing is finding something that works for you that gives you some sort of unfair advantage. Because anybody from out of state trying to do what you guys are doing, you know you're gonna kill them because you guys have such deeper, intimate knowledge of the area. Like you said, even that first deal, you're like, well, the neighbor is the title guy. So he just told us every detail and it's just like, boom, boom, boom. You know, it just makes it so much more doable than some outsider trying to come in and capitalize.
- [30:45]
B
Podcast that Brandon Turner was talking about the exact same thing. He, I think he said he put like $600,000 on a multi unit and he ended up having to sell it because he was losing money and one of the locals bought it and they, they turned it completely around. It turned into a money maker for the local because the local, like, he just talked, he was crunching numbers, but he, he just didn't know the area, didn't know the people. So. Yeah, exact same thing that you're saying here.
- [31:23]
A
Yeah, I love that. So, yeah, keep running with that as long as you can. That's super awesome. And then, yeah, the, the cool thing with real estate is the sky's the limit though. You know, you can run here and then pivot there and then do that. And, you know, I always encourage people, especially the beginning, to try a lot of different stuff and see which ones you love and see which ones you hate. A lot of people, you know, are turned on to short term rentals. Like, oh, that sounds so cool. And then some people get into it and they have a niche for it, they have a knack for it. Like, like you, Kelly. Like, I like the hospitality business. And that's what I think people need to realize. Like if you're doing short term rentals, yeah. There's real estate investing. That's a part of it. There's also the running a hospitality business. That's a whole nother part of it. And if you're not into that side, that's probably not going to be the strategy for you.
- [32:09]
B
But.
- [32:10]
A
And a lot of people are just looking at the money and they hate the hospitality side. And so it's like that might not be the best niche, but they don't know until they do it, you know, for sure.
- [32:20]
C
I think I love to design. And so with short term, you can just have fun and do all these fun accent walls and a mural. And that's kind of what I love about it. And just having, allowing people to have a fun experience in this beautiful area that is our hometown. And it's been a lot of fun.
- [32:40]
B
Yeah, like single family or multi family, you wouldn't be going crazy with the pain or the style or the furniture. You want to go basic, just.
- [32:47]
A
No, you have to be so boring. It's painful. Yeah.
- [32:51]
B
It's not even close to the same.
- [32:54]
A
That's cool. Well, that, that's super awesome. Especially when it's such a hands on, intimate project, like, you know, a house hack that you're in. It's like, it's cool to be able to be a little passionate with it, you know, and then someday you'll see people hashtag you showing pictures of that and you're like, I miss that house. I miss my tulips. I miss the gym. You know, it's always good to miss something and keep pushing, pushing your limit to bigger and better things.
- [33:19]
B
For sure.
- [33:20]
C
Well, this house, we will definitely be keeping it forever. We are not planning on selling it at any point.
- [33:26]
B
We learned our lesson.
- [33:28]
A
Yeah, no, for sure, for sure. That's awesome. Well, that's super cool. I think this has been super fun. I love for people this here. Like how. I mean, Brody says this all the time. He's like, you're literally just one deal away from changing your life. And I mean, that's a pretty good example with what you guys have. And, and, and people hear that and they might think, oh, one deal, like, that's no big deal. It's just like, sign here and then it's done in a week. And you're like, that one deal might take 15 months to tie down and three years to stabilize and get up and running and, and countless hours and city hall meetings and whatever, you know, but it's like, what's the alternative? Do Nothing.
- [34:12]
C
Right. And for us, since this house was so scary, a lot of people would look at it and, or you know, as we, when we bought it, they would look at it and you were like, you guys are crazy for doing this. I'm like, you just got to see the potential. We bought this house at 215 and the bank, when we pulled our HELOC on this house, they gave us an ARV of 845,000.
- [34:41]
A
So you've already pulled out debt on it.
- [34:43]
C
So. Yeah, so we had to pay off his parents because they small HELOC on it just to pay off his parents and pay for extra renovations materials, man.
- [34:57]
A
But yeah, let's go back to those numbers for a second. I mean, you bought it for 215 and the last appraisal that came out was over eight, like one deal. I mean, that's crazy. I mean you might, you know, wow. Like, it's just like how long would it take the average person to make $600,000 of wealth? You know what I mean? Like more time than the 15 months you waited to lock this baby down. You know what I mean?
- [35:29]
C
Years to renovate it. Yeah, yeah.
- [35:32]
A
And the three years to renovate, like, well, that's still like $200,000 a year. Like I'll take it. You know what I mean? So, yeah, I don't know, you might end up selling that and rolling that into a lot of projects. That's a lot of equity. We'll see. But like I like how Anthony mentioned earlier, we never sell assets for money. We trade them up for better assets. So keep that in mind if you ever do. But, but man. Yeah, what, what an opportunity. I mean that is so cool and inspiring to that some piece of junk headache hoarder house on a back roads that you were scared to touch and it was a mess and you dropped the deal, you were out and it all ends up coming to you and it's like, wow. Like that's what can come out of keeping your thumb on the gas, you know, keeping yourself going and making sure that you don't quit. And then it's like I always say, action leads to opportunity. And you know, you took action. You, I bet you did not think it was going to be worth 800,000 when you were buying it. Did that even cross your mind?
- [36:40]
B
No, we were estimating and hoping for 400.
- [36:43]
C
400.
- [36:45]
A
That's awesome. That's great. Yeah. Which still would have been killer. I mean, you don't you double your net worth like. Like that. You know what I mean, it's like. And that's one thing with real estate is we talk a lot about cash flow. We love cash flow. I love cash flow. I live off my cash flow like it's my bread and butter. Like, that's why I have time to do everything that I do. But, like, the wealth that can be gained by doing these things is just beyond measure. It's crazy compared to just the cash flow itself. There's just so much wealth to be grown that a lot of times it is the cherry on top. And apparently that can be a pretty big cherry. Well, that's super cool. Well, we're going to dive into our final four questions here, but I want to ask you guys a couple things. One is, you know, have you had any? I know. What would. What advice would you give to anybody that's listening? They're like, well, I'm new to real estate or I'm scared to get started, or like, you know, like, how do you figure out all these weird list pendants and titles and, like, lawsuits? Like, that's too intimidating. Like, what advice would you give to somebody who's like, wanting to hear this story? Like, I wish I could do something like the Frosts.
- [38:02]
B
I would say, you just gotta. You just gotta do it. If you could just, you know, you have the analysis paralysis and you have to have everything in a row before you'll take your first step. If you can find a way to just make the step, even if it's the wrong step. You learned that it was the wrong step, and you make the right step the second time. You wouldn't have learned that if you didn't take the first step to start with. So, I mean, we all make mistakes at the first, and it's bound to happen. Some of us get lucky and we don't. But I would say just. Just start.
- [38:42]
A
I love it. And you learn so much by doing right. I mean, you learned a ton. Even on that house that you sold. You. You actually felt the pain too, of like, oh, man, we shouldn't have sold. You learn a lot from that, from the. The lessons you learned from diy, how much you learned in this project as well. It's like you learn so much by doing that. I think that's, you know, it's not like this novel, unique advice no one's ever heard, but we keep. It's like, resounding. We keep hearing that advice over and over and over because it's so true. And anybody who's done it, they're just like, yeah, I didn't know what I was doing, but you just gotta do it and you learn how as you go. And that's like the best teacher you can find.
- [39:23]
B
I actually talked.
- [39:23]
A
That's awesome.
- [39:25]
B
Our old home. And I told him, I'm like, I'm sorry, dude. I'm like, your home was our learner home. Hopefully some of the things that you're dealing with haven't been a pain. And he came back. He's like, no, you actually done a really good job. It looks great. It's been functional. He's like, there's a couple minor hiccups, but it wasn't a big deal. I'm like, oh, good.
- [39:47]
A
He's like, you didn't put backer board under the tile and it all cracked up, but it's fine.
- [39:54]
C
Our tile looks good.
- [39:56]
A
You're like, watch it. We had money tile skills.
- [39:59]
C
Yeah. We redid plumbing, electrical, new roof, new windows. It was all done, so.
- [40:05]
A
Wow, that's awesome. Well, sweet. Well, we're gonna dive into the the final four questions then. Unless you have anything else you want to share.
- [40:15]
C
Let's dive on in.
- [40:17]
A
All right, so here we go. And you can each answer individually if you'd like, or you can have a combined answer if you feel so inclined. But question number one. All right, Kelly and Anthony, what is a non real estate related bucket list item you've recently checked off or you're excited to check off next?
- [40:38]
B
I think we agree on this. We went to Hawaii last year for.
- [40:44]
C
Our 10 year anniversary.
- [40:46]
A
Congrats.
- [40:48]
B
I mean, that was a huge thing. We went to Catalina for our honeymoon. It's like, we gotta go further than this.
- [40:55]
A
Yeah. So what, what part of Hawaii, what island did you guys go to?
- [40:58]
C
We went to Kauai and Oahu.
- [41:01]
A
Oh, that's awesome. I love Oahu. I've been there a ton of times. I used to live out there, but I still have never been to Kauai and it's so high on my bucket list. So.
- [41:14]
C
On our bucket list, we want to take the kids and go back to Kauai.
- [41:21]
A
That's some good parents right there. I'll take the kids to the babysitter and then I'll go to Hawaii. Just kidding. How old are you guys? Kids?
- [41:30]
C
We'll have a nine year old, a five year old, and a two year old.
- [41:34]
A
Okay. Awesome. Yeah, nine year old will probably actually remember it and get a kick out of it. That's awesome. Well, yeah, Hawaii is an awesome bucket list.
- [41:42]
C
Items save up.
- [41:45]
A
What was that?
- [41:46]
C
I said we'll wait two Years. Then our little girl will be easier on the train or on the airplane. So.
- [41:53]
A
Yeah. That's awesome. That's great. I love it. All right, question number two. What book are you currently reading?
- [42:03]
B
I'm actually. I just barely finished Atomic Habits. I was listening to that. So audiobook while I'm working out is. Has been Atomic Habits. And then I've been reading Think and Grow Rich by Napoleon Hill.
- [42:21]
A
Both awesome books. Atomic Habits, Think and Grow Rich. What do you have, Kelly from Dean.
- [42:27]
C
Grazioli, Millionaire success habits.
- [42:30]
A
So there we go, guys. These are hitters. These are good books. If anybody hasn't read all of these, definitely go check them out. Atomic habits. James Clear. Think you grow rich. Napoleon Hill, Dean Graziosis. Millionaire. What is it? Millionaire habits. Success habits. Awesome. Definitely check those out. So question number three just kind of jumps off that, though. Besides the ones you're currently reading, do you have any books or podcasts or courses or YouTube channels or anything that you would recommend? People check out.
- [43:06]
B
The book and podcast that I would recommend go hand in hand. The. The podcast is from Ed Milette and it's his book, One more. So I listen to every single podcast of his because it just boosts your energy, it brings you. It makes me start out the day right. So Ed Mylett, he's been one of the ones I listen to more than anybody.
- [43:35]
A
Yeah, his stuff's awesome. He. I love a bunch of Ed's content.
- [43:39]
C
And then I've been listening to thanks for visiting podcast. And so they are all about short term rentals and the hospitality side. So I figured if I'm gonna have one, I better know what I'm doing, so.
- [43:54]
B
So I got the feel goods.
- [43:55]
A
That's awesome. There you go. I love it. You guys are the power couple. Taking it down. All right, well, last question then. You guys get to send a text message out to the world or one each up to you guys. And everybody's phone's gonna go buzzing. What's it gonna say?
- [44:15]
C
It would say, see the potential in something and then act. I can't remember.
- [44:28]
B
Yeah, I don't remember what it was.
- [44:30]
C
See the potential.
- [44:31]
A
All right. See the potential. Act and do. All right. Well, I love it, you guys. This has been super fun. I'm excited for people to be able to hear kind of your story and dig into the details of this fun project that you guys are still deep in the middle of. We're excited to see how it goes. What is the best way for people to keep in touch with you and to find your airbnb and anything else you'd like them to know.
- [44:58]
C
So we have an Instagram page. It is Frost this Home. And then for our rental, it's just Frost this Home Rental.
- [45:08]
A
There you go. Frost this Home Rental and Frost this Home on Instagram. Check it out, everybody. Well, awesome. Kelly, Anthony, thank you guys for being on. Thanks for watching Carving out the time. I know it's late. You got kids in life to deal with, but we appreciate you guys sharing a little bit of inspiration with us.
- [45:25]
C
Thanks, Joe.
- [45:25]
B
No, it's been fun hanging out. Thanks, Joe.
- [45:29]
A
Awesome. Well, sweet. Well, without any further ado, this is Joe Jensen signing off for the Real Estate Investing School podcast, reminding you to just start.
- [45:42]
B
Sam.