First SFR Purchase - Kansas City

[Riley F.]

Just had an offer accepted on a SFR in Independence, MO, though the home is very close to Blue Springs. The home is a 3br, 2ba, 1250 sqft, 2 car garage, built in 1984. I have forecasted a CoC of 8%, and with an equity cash out at 75% LTV, a CoC of 11.5%, with $10k cash out of pocket. Number details below:

Price: $82,500

ARV: $115 - 120,000

Taxes: $150

Insurance: $55

Assumptions are 8% vacancy, 8% repairs, and 12% management fee.

[Engelo Rumora]

Thanks @Riley F. for your comment.

I believe you can find a better deal in the mentioned areas with more equity in them even if you are looking at buying and holding.

If your buying turn key and looking at B class (Independence, Ruskin, Grandview, Raytown) a rough estimate to buy would be around $50,000 purchase with rents from $700pm to $900pm.

14% net - 18% net (maintenance and vacancy not included).

How long have you been looking into the KC market?

Thanks for reading.