New investor case study: Kansas City, MO

[Ryan Stahr]

hi all, please give me advice on this case study I'm performing on my own here in the greater Kansas City area. Feel free to comment, criticize, or offer any advice you have.

Property:

rehabbed single family home about twenty minutes outside of Kansas City metro area.

Seller is an investor in the area and has it listed with a local real estate agent with a good reputation and active blog for $77,000.

It is a 4 bed/ 2 bath with new wood floors, remodeled bathrooms, and an overall nice appearance.

It has a 1 car garage.

The agent also does the property management for many of his investors and said he is very confident that they will have the property rented out at $895-$925/month within the next 45 days. I'm always cautious with "he says she says" and wanted to verify this. The average rents in the area ( the data isn't ideal) is around $850 for a 4 bedroom. So his claim is believable, although never certain.

With that information, should I move forward and make an offer? Running the numbers, with a mortgage on $70,000 with around a 5% interest rate, my payment will be around $450 a month, 10% of rent to property management will put me out another $90 or so a month. I'm still looking at potentially $400 of monthly cash flow, which I like for a first property.

Thoughts? Comments? Is it worth going forward and attempting to move to escrow and starting due diligence?

Thanks so much in advance to all!!