Kansas City Real Estate - Cash Flow Investments - B&C Class Single Family Homes

[Luther Wilson III]

Real Estate Investors Who Are Actively Looking or Already Operating in the Amazing Kansas City Market:

Plug in with us as we move & groove through this new economy. Single-family homes in B-class areas have been and will continue to be a solid move for investors who intend to acquire and keep properties for the long haul.

Why upgrading how you invest or adding another weapon to your arsenal may be worthwhile? Imagine a smarter, simpler way to grow your portfolio:

Cut out the stress and start earning faster.

Forget about lengthy project approvals or drawn-out renovations.

Say goodbye to short-term debt headaches.

No more scrambling to repay a hard money loan in 6 to 12 months.

Avoid the risk of over-budget, delayed construction projects.

Keep your focus on long-term cash flow, with no pressure to refinance or resell in just a year.

Here’s another example of a property that would make a strong investment opportunity:

103 N Charlotte St, Independence, MO 64054
MLS #: 2488097
Listing courtesy of the Shaun Ashley Team – RE / MAX Heritage

Current list price: $221,900.

This home has 3 bedrooms, 2 bathrooms, a 2-car garage, a full basement and it was built in 1968; Square footage approx. 1,570

The estimated out-of-pocket costs for a purchase using a non-QM loan; a 30-yr fixed rate at 8% interest:

Down Payment (25%): $55,475
Closing Costs (3%): $6,657
Placement Fee: $10,000
Reserves: $5,000

Total estimated cash needed: $77,132

The total monthly payment (PITI = principle, interest, taxes & insurance) for this investment:

approximately $1,615

Once again, we make this type of investment work for the long term by offering seller financing to residents as opposed to simply renting the property.

As a 10-year lease option here's how the cash flow & ROI could look:

Option fee received: $7,250
Monthly lease amount: $2,015

In this scenario there is approximately $70,000 "left in the deal" or tied up in the property. This type of investment will produce:

Monthly cash flow of approximately $400 =
Year-one ROI: 6.8% cash on cash

A $221,900 home today at that point could be worth $330,000. That is the amount that will be used, from the jump, as part of this transaction. After the lease option residents exercise their purchase at or before the 10-year period, you will receive a very large, back-end payout.

Plug in so you can learn more about how you can invest in real estate and grow your portfolio. If you would you like to figure out how you can create more residual income, i.e. cash flow from investments or private funding then connect with me on YouTube, Instagram, and Facebook as well.