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Buy and Hold Real Estate Case Study – 62nd St – Kansas City

Buy and Hold Kansas City

62nd St, like many of our homes, was full rehab secured on from our direct distressed channel network.

The property had a half finished basement with water and foundation issues, the roof and all windows were in disrepair and had to be replaced.

We provided refinished wood floors, closed door way to create a new bedroom and added a tandem garage space in the basement with a new bedroom and bath.

Copper was missing home was completely replumbed.  Property had a tenant offer in 5 days

Kansas City Real  Estate Challenges

Biggest Challenges:  62nd St had significant foundation cracking and water issues.   We applied a full epoxy injection and water vapor seal on all foundation cracks and added proper grading around the home to direct water away from the foundation successfully with our foundation company, KC Pier and treated the biologically treated the basement with KC Superior and Restoration and direct partnered company.

Financial Overview:

Purchased 38,000

Labor, Materials, Insurance 32,000

Fees 10,000

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Total 80,000

2016 Appraised Value 112,500

2017 Appraised Value 118,000

Instant Equity 38,200

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Monthly Rent $975

Pocket Analyzer:

Purchase $38,000.00

Cash on Close – Fees $10,000.00

Rehab $32,000.00

Total Cash Invested $80,000.00

Monthly Rent $975.00

Property Taxes $152.83

Insurance $66.25

Property Management Fee (10%) $97.50

Mortgage $0.00

HOA $0.00

Vacancy (10%) $97.50

Repairs (10%) $97.50

Total Monthly Expenses $511.58

Monthly Cash Flow (Monthly Rent – Monthly Expenses) $463.42

* KC Property Guys Investment Consultants understand there are many ways to calculate investment valuations.  We tend to use more conservative scenarios. For example, 10% repairs on a turnkey investment tends to be high which work against displayed monthly cash flow, NOI and Cash on Cash valuations.  Overall, we feel our approach is more transparent and appreciated overall by our investment partners.

Buy and Hold Real Estate Case Study Summary

Summary: 62nd Street was financially very successful.  Overall the project was smooth.  We had many tenant offers on the property.  An overall great project directly from our channel network.

 

 About KC Property Guys

 KC Property Guys is a Kansas City local turnkey real estate investment firm. We work with home owners and real estate investors alike specializing in traditional and creative housing solutions for home owners and all in one business is a box investment programs for investors.   Free home owner home valuations and investor consultations.  Information (913) 730-0086. Contact KC Property Guys today!

 

 

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