Kansas City KS Real Estate Buy and Hold Case Study Challenges
Biggest Challenges: Clearing the Kansas City short sale was the biggest hurdle for this home, but fortunately these are waters we are very well connected and familiar with internally. Once we secure bank clearance the project went smoothly as planned.
Labor, Materials, Insurance 24,000
2016 Appraised Value 126,000
2017 Appraised Value 134,000
Instant Equity 27,000
Tenant Rent – $1100 / month
Cash on Close – Fees $10,000.00
Total Cash Invested $99,000.00
Monthly Rent $1,100.00
Property Taxes $165.33
Property Management Fee (10%) $110.00
Vacancy (10%) $110.00
Repairs (10%) $110.00
Total Monthly Expenses $567.00
Monthly Cash Flow (Monthly Rent – Monthly Expenses) $533.00
Kansas City KS Real Estate Buy and Hold Case Study Summary
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.
Summary: We had many tenant offers on the property on 74th St. The home had a quality tenant in about 8 hours overall with 2 back ups tenant offers by the following day. Very nice project overall.
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