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Kansas City KS Real Estate Buy and Hold Case Study 74th St

Kansas City KS cash home buyer
This Kansas City KS Real Estate project at 74th St was a MLS short sale home which was a DIY weekend warrior updated home.   Were were able to retain windows and roof, but had opted to do a full paint, new flooring, add tile in bathroom and add a shower to the master bath.  We choose granite as normal and changed the hand rail to a wrought iron spindles to give a more open feel. 

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.

Financial Overview:

Purchased 65,000

Labor, Materials, Insurance 24,000

Fees 10,000

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Total 99,000

2016 Appraised Value 126,000

2017 Appraised Value 134,000

Instant Equity 27,000

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Tenant Rent – $1100 / month

Pocket Analyzer:

Purchase $65,000.00

Cash on Close – Fees $10,000.00

Rehab $24,000.00

Total Cash Invested $99,000.00

Monthly Rent $1,100.00

Property Taxes $165.33

Insurance $71.67

Property Management Fee (10%) $110.00

Mortgage $0.00

HOA $0.00

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.

 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!