All Forum Posts by: Zachary P.

@Elizabeth Colegrove 

Thank you for your comments they are much appreciated.  I have been investing in MFH here in California.  However, the problem I have been running into is that these homes run about 200k and require 50k down payment.  Out of state appeals to me because of the low capital required.  This was the first deal presented to me out of state.  I did not know how to go about analyzing deal hence why I put it on here.  If I may ask how do you go about infesting out of state?  Also how do you go about analyzing your deals?  Thank you so much for your help.

@Vicki Stewart 

Thank you for your advice.  PM on it way.

@Daniel Bennison 

Thanks for your response Daniel.  I welcome criticism, what appealed to me was the fact that it was a bundled purchase and I could potentially acquire 7 homes in one visit to KC.  However, I recognize that I know nothing about KC which is why I decided to post here to hear what others think.  Where would you suggest investing in KC for cash flowing type properties.  Thank you so much.

@Mary B.

You are correct 3 are rented and 4 are vacant. I just made an estimated guess that when they are all rented it will average 500 a door. My strategy is to buy and hold and get as much cash flow as possible. Not really looking for appreciation. Owner financing has been something I have been thinking about. Thank you

Hi everyone this is my first post on bigger pockets.  However I have been lurking around the site now for approximately 6 months and have learned so much!!!

The deal is for 7 single family homes in Kansas city for 126,000 dollars. I would assume the loan already in place which is 35,000 down with a monthly payment of 682.50, and a balloon payment due in 5 years. SFH are as follows:

2bed/1bath

3bed/2bath Currently rented for 600

2bed/1bath

3bed/2bath

3bed/2bath

2bed/1bath Rented for 450

2bed/1bath Rented for 500

Taxes and insurance yearly payment of= 4,680

Each of the properties that have not been rented need somewhere between 900-2500 dollars in repairs to be rentable. 

After looking on craigslist and rentometer.com I am going to assume an average rent of 500 per door.

I was told tenants pay all utilities.  Does this sound right?

Monthly rent 3500

-350(10%vacancy)

-350(Property management 10%)

-390(taxes and insurance)

-682.50 (debt service)

=1727/2(repairs)=863.75 Cash flow per month

Down payment 35,00( I think I can talk them into covering closing costs) + 5000 repairs= 40,000 down

Cash flow 863.75x12=10,365/40,000=25% cash on cash return.

Let me know what you think.  Also curious about the neighborhood I have attached map with the neighborhood outlined, see link.  Thank you

http://s28.postimg.org/r92kp7shp/Kansas_city_7_house_deal_neighborhood.jpg

Zach