Kansas City MO - Hybrid Turn Key Strategy

[Randy Smith]

My wife and I are new to real estate investing, and we're currently looking at investing in properties in Kansas City, MO. We live here in Phoenix area, and we've not been able to find any buy and hold properties that will provide positive cash flow. We're using a HELOC at 5.25% for our purchase, and then we plan on doing a cash out refi after we get a tenant in place.

We've connected with a Kansas City, MO turn key provider, and they offer a program where you purchase one of their properties (likely foreclosure, bank owned, etc), use their construction company for rehab, and then use their property management company to manage.  You end up with a positive cash flowing property and they present the opportunity as if you have 8-12% equity upon completion.    The name of the company is Kansas City Investment Specialist, the owner is Pat Grace, the real estate company is United Real Estate, and the construction company is KC Rehab Construction.

Questions:  

Have you heard of these types of companies?  

Is there benefit to using this type of program versus a tradition turn key?

Does anyone have any experience with any of these companies or Pat Grace?

We had a great conversation with Pat and Amanda, and we are seriously considering moving forward with one of these properties, but we wanted to get input from the BP Community first.

Best, 

Randy 

[Mike D'Arrigo]

@Randy Smith The pie isn't big enough for there to be any equity left after acquisition, rehab and their cut of the profit. The numbers just aren't there to have 8-12% built in equity.