New Opportunity
SOLD

KC Strong Cashflow & Equity Property – D.I.R

All in $ 315,000 CASH

Buy-Reno-RentThe plan

  1. Cash purchase ~$250k
  2. Renovate ~$45k
  3. Refinance and pull most cash out
  4. Lease ~$2400/mo
  5. Benefit 1: cashflow $6300+ per year
  6. Benefit 2: ~$100,000 in equity after renovation

Dec. 13 2023 update: rate is 6.875% with 1pt on 30 yr fixed with loan amounts below 200K.

Suitable to a person who is willing to go through the a 2-3 months of renovation time.

This is not your average home, hardwood floors need to be redone and all paper stripped. Pool has been taken care of and it is recommend for long term buy and hold.

The highest home in the neighborhood sold for $400k.

Parents moved out of home and a son was living there and was in a bad car accident so all children are selling.

There are multiple offers on this and they are cash. Offers due Friday.

Excellent area of Kansas City, near the airport, Zona Rosa shopping and about 15 minutes to downtown Kansas City. This is North of the city where Meta and Google will be located!

  1. Asking is 205k BUT the suggested offer is 250k offer – MULTIPLE OFFERS! ALL DUE FRIDAY
  2. Estimated renovation needed is $35k-45k: redo hardwood floors, take wall paper off and repair walls/paint. Upgrade lighting and door handles and plumbing fixtures.
  3. Due to the state of this house it is very likely an appraisal won’t approve it and for that reason cash offer is required. AFTER renovation is completed, reliance can take place.

COMPS

Price/value: Two different models put this house’s values at $135.5/Sq Ft:

  • Upper floor sq ft: 2,882 @ $135.5/sq ft = $390k
  • Finished basement sq f t: 864 @ $95/sq ft = $82k

Rent

  • Upper floor sq ft: 2,882 @ $0.95/sq ft = $2700
  • Rent use in the financial model: $2350-$2550

General Notes

ATTENTION ALL INVESTORS, FLIPPERS, AND REMODEL ERS! This home has tons of potential. Carpet was just taken up and has hardwoods throughout. Still has items in the home, and the sellers’ kids are still trying to get it cleaned out. Needs some upgrades and TLC but A TON OF POTENTIAL! 5 total bedrooms but one non-conforming. A dormer upstairs and 1 bedroom downstairs. Inground pool out back has slide and shed. Pool has a new liner, pump, and filter all 3 yrs. old. Roof is 3 1/2 years old. Great bones just needs some updating. Being sold as is. This is not your average home, hardwood floors need to be redone and all paper stripped. Pool has been taken care of and I would recommend flipping or long term buy and hold. The highest home in the neighborhood sold for $400k. Parents moved out of home and a son was living here and was in a bad car accident so all children are selling. There are multiple offers on this and they are cash. Offers due Friday. I have a builder that I would recommend and trust to do all the work! Cash flows at ~$900/mo. when refi’d to 6%. Any other insight you have to this neighborhood or home.

Financial Analysis / Deal AttractivenessYears:
 510
 Net Cash Flow$31,875$81,769
 Equity Increase$97,153$217,371
 Total Gain$129,028$299,140
   
 Average Cash Flow/Year$6,375$8,177
 Average Cash Flow/Month$531$681
 Average Gain/Year$25,806$29,914
 Average ROI106.4%246.7%
 Annual ROI21.3%24.7%
 Projected Property Value$486,661$592,098
Property Specifications
 Bedrooms4
 Bathrooms2.5
 Square Feet3746
 Year Built1967
 Garage Size2
 Schools Rating (scale 3-30, 30 is best)15
Lot size (sq ft)10019
Purchase AssumptionsMy Offer
Offer used for analysis$250,000
Suggested offer (low)$240,000
Suggested offer (high)$250,000
Asking$205,000
Market Value (after improvements)$400,000
Estimated Improvements (lower)$35,000
Estimated Improvements (upper)$45,000
Estimated Closing Costs$2,500
Estimated Mortgage Costs$2,013
Other Fees At Closing (pts, . . . )$1,750
Total Cost (estimated)$296,263
Original listing date10/20/23
DOM (days on market – TODAY)2
Financing Assumptions
After refinancing
 
 Down Payment (%) 30%
 Down Payment Amount$75,000
 Financed Amount$175,000
 Interest Rate 6.875%
 Mortgage Term (Years)30
 Monthly Mortgage Payment$1,150
 Cash Outlay (Total Out of Pocket) $121,263
Estimated Financial AssumptionsMonthlyYearly
Rent (upper)*$2,550$30,600
Rent (lower)*$2,250$27,000
    
Property Taxes $250$3,000
Insurance $150$1,800
Repairs$100$1,200
Property Management Monthly (%)7.2% 
Property Management Monthly ($)$172$2,059
Leasing Fee$67.5$810
HOA or Fixed Costs$0$0
Vacancy Rate 4.0% 
Total Fixed Expenses$828$9,939
 Total Expenses (Fixed + Mortgage)$1,978$23,734

Items need to be checked/confirm:

  1. If flood insurance is needed (based on FEMA maps it is not needed)
  2. Detailed budget and scope of work

Rate Updates – Dec 13 2023:

  • SFR
    • 6.875% with 1pt on 30 yr fixed with loan amounts below 200K.
    • 7% with 1pt on 30 yr fixed with loan amounts above 200K.
  • 2-4 Units
    • 7.125% with 1pt on 30 yr fixed (Duplex)
    • 7.375% with 1pt on a 30yr fixed (Tri or 4 plex)
  • Updated On:
  • January 24, 2024
Property Id : 64268
Price: All in $ 315,000 CASH
Property Size: 3,746.00 ft2
Property Lot Size: 10,019.00 ft2
Rooms: 5
Bedrooms: 4
Bathrooms: 2.5
Year Built: 1976
Garage: Garage
Garage Size: 2
Basement: Finished: 864
External Construction: Brick & Frame, Metal Siding
Roofing: Composition
Rent (mo): 2650
ROI (ann): 23
Cashflow (mo): 750
Property Taxes (mo): 250
Insurance (mo): 150
Repairs (mo): 100
Management Fee (mo): 190
Leasing Fee (ann): 900
Vacancy Rate (ann): 4
Other Features
back yard
Basement Walkout
deck
fenced yard
front yard
pool
private space
Transport
Supermarkets
Schools
Restaurants
Pharmacies
Hospitals
$ 788,993.26
per month
  • Principal and Interest
  • Property Tax
  • HOA fee
$ 1,493.26

Similar Listings

Package
New Opportunity
Rented
SOLD

Multiple Rented Townhomes in Kansas City &#8...

Read First Why consider buying any of these houses: Pricing The following questions were s ...
Dan B

Property Reviews

You need to login in order to post a review
Information contained herein was obtained from sources deemed reliable, however, Simply Do It and/or the owner(s) of the property make no guarantees, warranties or representation as to the completeness or accuracy thereof. The presentation of the property is offered subject to errors, omissions, changes in price and/or terms, prior sale or lease or removal from the market for any reason without notice. The 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. Simply Do It and/or the owner(s) are not responsible nor liable for any damages arising from the use of the analysis info.

Compare Listings

Dan B