Deal breakdown Kansas City Metro

[Milton Chamberlain]

4843 & 4845 Roe Lane, Roeland Park, KS 66205/ Duplex

This is a great deal. I thought I would share with BP community. It just came on the Heartland MLS yesterday (Kansas City Metro), and is listed at $255k. I imagine there will be competition at this Price Point in this A market area. (Roeland Park is a high price point area, Which turns into Million dollar homes as you head South into Mission and Fairway.As you head NW, it turns into a C market area. Directly North is still A market-Shawnee)

It looks good with straight investor metrics using Fannie Mae conforming loans (25% down, 7.1% rate with a few points) and easy ARV monthly rent of $1700/unit ( I get this number based on the exact same floor plan in Raytown with complete rehab placing a tenant at $1500, and Raytown gets lower rents than Roeland Park KS.) Keep in mind I have 20% held in reserves and expenses for Mgmt/repairs/cap ex.

COC: 6.7%.            Cash flow:  $960.         Cap rate pro forma 7.26%...better if you can get that $75k rehab budget down

For house hackers, it appears putting 10% down (if you could swing it) would be best. Using income assumption of $3400, so after buyer fulfilled one year obligation as owner occupant. Keep in mind I removed 10% mgmt fee, but kept 10% reserves for Capex and repairs:

Cash Flow : $960   Pro forma cap rate of 8.42% (obvs better if you could get my high estimate of $75k rehab down)

COC return:  9.6%

If any OOS or local KC investors  are interested in having detailed analysis and information sent your way, contact me.