All Forum Posts by: William Sumnicht

@Account Closed You bet! In East Westport, just west of Gillham. Also project managing a gut job reno (not my property) in the W 39th St district.

@Riley F. Christoph Becker is an active wholesaler here. I'm not sure if he's on BP, but his talk at KCIG is on youtube - http://youtu.be/607mbg4CxQo

@Engelo Rumora I've been reading without responding here for months. I finally decided I needed to just force myself to respond to a few things. With that, the flood gates opened!

@Bill Jacobsen

Yes, the tenant pays electric.

Next to the positives and negatives, I should have put in a neutral up there: "Hard to determine maintenance when HVAC repair and replacement is covered by the HOA dues."

Does that effect the $83 you suggested? I'm also curious as to how you arrived at $83, specifically.

And what about the PM filling the unit? That's $675 off the bat, or $56.25 monthly over 12 months, assuming the tenant stays for at least the entirety of the lease.

Doesn't seem like a great deal, but the price and owner financing seemed so great, I just wanted to make sure that my numbers accurately ruled it out.

I know condos are a hot topic around here. With the knowledge that there may be varying thoughts, I'd be interested to get a few opinions on a property I've got my eye on.

Positives: Low price, owner finance possibility, HOA includes gas, HVAC maintenance and replacement, water, trash, exterior maintenance, snow removal.

Negatives: High HOA.

Price: $50,000

Improvements: $0

INCOME

Rent: $900

EXPENSES

HOA: $323 (whoa!)

Vacancy (10%): $90

Property management (10%): $85

Maintenance (2.5%?): $23

PITI guestimate (with owner finance): $300

$900 - $323 - $43 - $85 - $23 = $426 left to cover PITI (expenses over 50%)

$426 - $300 PITI = $126 Cash flow

Does this really leave enough wiggle room? Particularly with high, unavoidable monthly holding costs of $623 (HOA dues and PITI). A lot of what ifs come to mind with that (what if the HOA decides to disallow rentals?)

@Mike D'Arrigo I love it! I'm in awe of the business model. Thanks for sharing.

@Mike D'Arrigo Sorry for my lack of clarity.

My question was whether you put a property that's already rent ready under contract, then immediately resell to a buyer, in exactly the way that a wholesale company would, but with fully renovated properties, or if you buy the properties that need the work, and do the renovations before selling the property.

It seems I've found my response in your answer. Do you mind if I ask how the company accomplishes this from out of state? Do you put renters in the property prior to sale? Do you offer PM company services with the property?

Listened to the podcast with Chris Clothier twice today. Fascinating stuff what you guys do.

I mean, I know Longfellow prices are lower and all. But whoa.

@Mike D'Arrigo Is your turn key business use steps parallel to those that a wholesale business would use?

I ask in part because I have a duplex in the heart of Kansas City that is undergoing improvements and will then be rented and listed for sale, and in part because I am fascinated with the turn key business.

@Matt Roy From a fellow Kansas Citian, welcome to BP.

@Engelo Rumora@Engelo Rumora