First Kansas City Turnkey Purchase
Hey Everyone,
I figured I would document my first turn key purchase in Kansas City, MO. I read another members similar blog and found it very helpful. I won't be naming company names unless through private message for feel free to ask.
I researched a number of turn-key companies before narrowing it down to a few. I also found an area that I was comfortable enough (a BP member drove the area and gave me the low down) with and pulled the trigger on one.
My wife and I executed the contract on 2/10. The lender that BP suggested works weekends & as a Realtor myself, I really appreciate that. Also, every company & seems agent I have spoken with seems to know and respect this guy. Locked in my rate this morning (5% w/ 20% down). I was tempted to by down the rate to 4.75% since I negotiated $1600 in closing cost credit but realized I'd rather keep the maximum cash in my pocket. The more cash I keep, the quicker I can buy #2 if all goes well. And really after looking at the number, the .25 difference really wasn't worth it in my opinion.
Also, my contact at the turn-key company and title company they chose has been working this weekend as well. There has already been a string of emails going back an forth this morning. We have reach out to the physical inspection company to schedule the inspection. This company was also chosen through BP suggestions and vetted through reviews and past clients.
Off to a good start I suppose. Here are my research numbers. I know it always looks better on paper so we will see in 12-13 months where the numbers actual fall.
Purchase Price: $85,000
Down Payment: 17,000
Estimated closing costs after credit: $1,100ish
Total Cash Out of Pocket: $18,100ish
Mortgage Payment: $365
Rent: $948
Gross Rent: $11,376
Estimated Expenses:
Property Tax: $486
Insurance: $675
Property Management: $910
Vacancy: $910 (8%)
Maintenance: $910 (8%)
NOI- $7,484
Cash Flow: $258.66
Cap Rate- 9%
COC Return: 17%
Again, follow along as this newbie enters the world of REI.
If you comment, please make it constructive. None of that negativity please.