Closed on properties #4 and #5 today

16 Replies

Had a six weeks gap between the first three and these two.  The first three SFRs are all rented at or above the income assumptions with no surprises so far.

#4 is a Duplex located in Grandview, MO.  Both sides are vacant but it is in good condition and should rent for $575 a side on a $60,000 purchase.  Plus it has a huge back lot that I may be able to build on later.

#5 is a 3 bedroom SFR raised ranch with two car garage. It comes with a tenant, at below market rent. But it will be cash flowing from day one at $45k purchase. This one is in South Kansas City just off 470.

I have #6, #7, #8, and #9 under contract.  6,7,8 are all 3 bedroom SFRs close to move-in-ready condition.  #9 will be the first rehab project, and I may try flipping it with rental as the second option.

I've screened hundreds of houses, and looked at 50+ houses and had several deals fall through, some due to inspection issues. But overall things are going well and I feel pretty good about what I've bought. My property management company seems to be working out as well, which I know will be critical to long term success since I'm not managing these myself.

I'll check back in with an update in a month when the next batch closes.

Congrats @Cliff Harrison  you are really doing this thang!  I need to take some notes!  Best wishes.

Great job, and fast!  We are working on #3 (under contract) right now and hoping for #4 in a couple of months.

Originally posted by @Cliff Harrison :

Had a six weeks gap between the first three and these two.  The first three SFRs are all rented at or above the income assumptions with no surprises so far.

#4 is a Duplex located in Grandview, MO.  Both sides are vacant but it is in good condition and should rent for $575 a side on a $60,000 purchase.  Plus it has a huge back lot that I may be able to build on later.

#5 is a 3 bedroom SFR raised ranch with two car garage. It comes with a tenant, at below market rent. But it will be cash flowing from day one at $45k purchase. This one is in South Kansas City just off 470.

I have #6, #7, #8, and #9 under contract.  6,7,8 are all 3 bedroom SFRs close to move-in-ready condition.  #9 will be the first rehab project, and I may try flipping it with rental as the second option.

I've screened hundreds of houses, and looked at 50+ houses and had several deals fall through, some due to inspection issues. But overall things are going well and I feel pretty good about what I've bought. My property management company seems to be working out as well, which I know will be critical to long term success since I'm not managing these myself.

I'll check back in with an update in a month when the next batch closes.

 Cliff,

How do you fund your projects if you don't mind my asking?  Just getting started in a new location.

I had thought about investing in the KC area again but your numbers just reinforce why I am not going to come back.  The purchase numbers are the same as when I left KC 40 years ago.  For me that is a problem.

When I left the area I was horrified at the cost of a home in the SF Bay area.  But in the same time frame prices here homes are 10-15 times the price of 1976 and in the KC area they are flat.

Yes, I know they have fluctuated in that time but I wouldn't bet my hard earned money on whether I can guess the right side of the bell curve.

Congratulations on your purchases and I hope you continue to grow your portfolio.

Originally posted by @Keith Hogan :
Originally posted by @Cliff Harrison:

Had a six weeks gap between the first three and these two.  The first three SFRs are all rented at or above the income assumptions with no surprises so far.

#4 is a Duplex located in Grandview, MO.  Both sides are vacant but it is in good condition and should rent for $575 a side on a $60,000 purchase.  Plus it has a huge back lot that I may be able to build on later.

#5 is a 3 bedroom SFR raised ranch with two car garage. It comes with a tenant, at below market rent. But it will be cash flowing from day one at $45k purchase. This one is in South Kansas City just off 470.

I have #6, #7, #8, and #9 under contract.  6,7,8 are all 3 bedroom SFRs close to move-in-ready condition.  #9 will be the first rehab project, and I may try flipping it with rental as the second option.

I've screened hundreds of houses, and looked at 50+ houses and had several deals fall through, some due to inspection issues. But overall things are going well and I feel pretty good about what I've bought. My property management company seems to be working out as well, which I know will be critical to long term success since I'm not managing these myself.

I'll check back in with an update in a month when the next batch closes.

 Cliff,

How do you fund your projects if you don't mind my asking?  Just getting started in a new location.

Hi Keith - for the first nine properties, i am doing conventional 30 year loans with 25% down. I am funding the down payments using my own primary residence home equity (took out a 3% first mortgage on my previously free-and-clear house).  I have a couple of contacts for local portfolio lenders (commercial loans) to continue acquiring beyond the first 10 financed properties.  I also have reserves from many years working in IT, which I continue to do every day, but I am working towards replacing that income stream.  So far I have not had to touch a dime of savings though.  I also sold a sports car which netted a couple of (smallish) down payments and saved us on insurance and property taxes.

Well..........interesting. Just remember its quality not quantity and their has never been a reward for speed in investing. That said sounds like they are giving away properties in your region.  I don't blame you. 

Good Luck

@Cliff

I own the duplex down the road on 12th. Paid 41,500 and mine is on 1.2 acres. Rent them for 575 each 

@Cliff

I own the duplex down the road on 12th. Paid 41,500 and mine is on 1.2 acres. Rent them for 575 each ????

@Cliff Harrison  

YOU GO SON!!!! KILL IT!!!!  Sounds awesome man, congrats and good luck with all your investing brotha!!!

Originally posted by @Timothy Aughinbaugh :

@Cliff

I own the duplex down the road on 12th. Paid 41,500 and mine is on 1.2 acres. Rent them for 575 each ????

Hey Tim, is that a question for me?  Good to know someone else owning right in that area. How long have you owned there?  So far Grandview area has worked out very well, as well as Red Bridge Road area around the IHOP prayer room.  Three out of my next four are in 64030.

Cliff

no, just a smiley gone bad. I own 11 properties in Grandview.

I would like to suggest you that select secure and reliable way for your success. Don't take any shortcut for your business development.

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