Updated almost 8 years ago on . Most recent reply
First deal analysis for Kansas City turnkey
Hello,
Real estate investor noobie here. I have been eying this property and wanted to run the numbers by you to see if this is a good deal.
Things to note:
Address: XXX NE Weather Vane St, Lees Summit, MO 64063
Class A property
Turnkey
3 beds 2 bath 1,090 sqft
I tried to be conservative on the numbers, but this is a turnkey. What throws me off here is the cash on cash is relatively low at 6.85%. Does this make it a bad deal? Seems right on track with stock market margins. Cash flow of $192 seems pretty good and theres some chance for appreciation in this area.
| Purchase | $135,000.00 | ||
| Rent | $1,400.00 | ||
| Mortgage | $579.77 | Interest Rate | 5.00% |
| Taxes | $182.92 | Downpayment | $27,000.00 |
| Insurance | $66.67 | Closing costs | $6,750.00 |
| Vancy (7%) | $98.00 | Total Downpay | $33,750.00 |
| Repairs/capex (10%) | $140.00 | ||
| Prop Mg (10%) | $140.00 | ||
| Total expenses | $627.58 | ||
| Income w/o Mortgage | $772.42 | ||
| Income w/ Mortgage | $192.65 | ||
| Cap Rate | 6.87% | ||
| COC | 6.85% | ||
| 50% rule | $120.23 |
Any advice is appreciated (no pun intended) :)
Most Popular Reply
Hello!
Fellow newbie here so feel free to take my thoughts with a grain of salt :)
I️ second the sentiment of confirming rents in that area - I️ visited with a few turnkeys in KC about a month ago to get a feel for the area and felt that some of the rent estimates were more optimistic than warranted. The second thing is - I️ don’t know how much your pm is charging but I’m running my pm numbers at 12/13% to take into account potential tenant placement fees, as well as any extra fees for periodic walkthroughs or any other extra, unforeseen costs, which can really take a bite out of your cash flow for the year, depending upon how much the PM charges.