80th St Project was another Kansas City Home Investment “buy and hold” property that needed a lot of attention but acquisition costs were higher than our normal costs for the time which lent itself to a great buy and hold project.
New roof, new paint in and out, new flooring, new kitchen cabinets and epoxy injection treated foundation cracks.
Once complete, property had a $1100 tenant / month in it if first 7 days of availability.
Kansas City Home Investment Buy and Hold Case Study
Biggest Challenges: Maintaining costs and strategic Kansas City home repairs and updates were the biggest challenge for 80th St. We had to manage tight budgets throughout project but managed to maintain excellent equity value for the investor and provided an immediate tenant.
Financial Overview:
Purchased 72,500
Labor, Materials, Insurance 28,700
Fees 10,000
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Total 111,200
2105 Appraised Value 133,000
2016 Appraised Value 137,000
2017 Appraised Value 141,000
Instant Equity 21,800
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Tenant Rent – $1100 / month
Pocket Investment Analyzer
Purchase $72,500.00
Cash on Close – Fees $10,000.00
Rehab $28,700.00
Total Cash Invested $111,200.00
Monthly Rent $1,100.00
Property Taxes $197.00
Insurance $90.00
Property Management Fee (10%) $110.00
Mortgage $0.00
HOA $0.00
Vacancy (10%) $110.00
Repairs (10%) $110.00
Total Monthly Expenses $617.00
Monthly Cash Flow (Monthly Rent – Monthly Expenses) $483.00
Kansas City Home Investment 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: Overall 80th St was a very typical investment for our investment partners. We have done multiple properties in the surrounding areas using our direct channel acquisition techniques.
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!
