2022 Duplex in Metro Kansas (multiple duplexes available)

Note: the MAP tab is not showing the location of this property

Why THIS deal?

Brand New construction
Builder paid rent and maintenance*
Amazing schools.  Perfect for young families! 
Highly appreciating neighborhood
Opportunity for multiple units

Opportunity Details

• Duplex = 2 units/doors, one structure (building)
• There are 10 duplexes available (20 doors/units)
• Each duplex*:
  • * actual spec may vary from one duplex to another – a verification per duplex is required
  • 6 bedrooms (3 per unit)
  • 5 bathrooms (2.5 per unit)
  • Sq Ft.: 2,630 (1,315 per unit)
  • 1 car garage
  • No Basement
  • Comes with : Dishwasher, Microwave, Rng/Oven- Electric, Stainless Appliances
  • Monthly HOA is $240 per duplex ($120 per unit) – tenants pay $120 ($60 per unit)
• MUST USE LOCAL PROPERTY MANAGEMENT CO. (NOT THE SDI’s MAIN PM), terms:
  • 8% monthly
  • 75% leasing fee
  • $120 lease renewal
  • Cannot self-manage or use a different PM!
• Builder guarantees $1895 in rent:
  • We are waiting on more info regarding this guarantee, such as for how long, and starting when
• Seller is offering up 2 “guarantees” in place:
  • Rental RATE Guarantee:  If the property is advertised and rented for any amount less than $1895, Seller will make up the difference to the PM firm, so that the Buyer receives a full rental amount.
  • Rent Guarantee:  If the home is not rented 60 days post-closing, the Seller agrees to cover the Buyers mortgage payment in FULL, until such time as the property is rented. Not to exceed $2700/month.  NOTE: as this is a duplex….if only 1 unit is rented, that rent will be used to offset Buyers credit EXAMPLES:
    1. One side rented: $2700 credit, minus $1895 rent = $805 credit to Buyer
    2. No units rented: $2700 credit to Buyer
  • All Warranty docs will be held by Property Management Firm, to make sure that warranties can be enforced. But … can be delivered to the Buyer as back up as needed. 
• Builder’s warranty
  A comprehensive 2-10 Home Buyers Warranty® is included for
  the entire property, providing additional security to the investment.
  • 1 Year Workmanship Warranty – covers the fit, finish and
    materials used in the construction of the home including roof
    covering, siding, walls, floors and cabinets.
  • 2 Year Systems Warranty – covers essential functions of the
    home including electrical, plumbing and mechanical systems.
  • 10 Year Structural Warranty – covers structural integrity of the
    home including foundation, framing and load-bearing elements.
• Location: approx 30 mins drive from downtown KC
• Community: park, trails, pool, Pavilion, Playground, Sport courts, and more

First Level Building Plans

Second Level Building Plans

Analysis

Open Questions

• Builder guarantees $1895 in rent:
  • $1895/side?
  • Guarantee starts when? day after closing? 
  • Guarantee is for how long? How is the guarantee provided? Bond? Contract? 
• PM – review PM agreement?
• HOA: review CC&R
• How does a buyer received all the warranty docs for all the appliances and mechanical to ensure manufacture’s warranty in needed in the future

Disclaimer

The info and analysis is provided “As Is”. All the information is believed to be accurate (except for the small effects of some simplifying assumptions), but is not guaranteed, and depends on the values entered for the property. This analysis is intended for the purpose of illustrative projections. The information provided is not intended to replace or substitute for any legal, accounting, investment, real estate, tax, or other professional advice, consultation, or service. The author of this analysis spreadsheet is not responsible nor liable for any damages arising from the use of the tool.