My First Rental Property - Kansas City Kansas

[Alex Gunnerson]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $95,000
Cash invested: $23,000

3 Bed 1 Bath Single Family Home in Kansas City Kansas.

What made you interested in investing in this type of deal?

The home is in a good area and the price was great! I was also looking for a home that needed some rehab, this fit the bill.

How did you find this deal and how did you negotiate it?

This home was a For Sale by Owner on Facebook. There were no photos on the listing and the owner stated they did NOT want to work with an agent. I called the number immediately. The owner had 30+ homes in the neighborhood and was looking to start selling off her portfolio. I told her I wouldn't be able to pay all cash and pay 20k above asking like everyone else at the time, she didn't mind and was happy to help out a new investor start of his career. Don't give up, you will get lucky eventually!

How did you finance this deal?

I went through a mortgage broker and ended up putting 3% down on a 30 year fixed rate loan, 3.3% interest rate.

How did you add value to the deal?

New Roof
Carpet full of cat piss -> luxury vinyl plank
Repaired 2 windows
New Paint
New Counter Top
New Appliances
And more.... big project!

What was the outcome?

23k of my own money invested (5k down, 18k rehab)
$460 cashlow / month
19% cash on cash return

The numbers ended up even better than I had hoped. The rehab was a lot of work, I had a ton of help and for that I am very fortunate. I learned so much. Ready to find the next deal 👀

Lessons learned? Challenges?

1. Always be looking for a home, sitting on the sidelines while the market 'calms down' would of lead to me missing this deal
2. During renovation, unless you are a professional, everything takes about twice as long as you project it will.
3. Thumbtack app is great! I tried to do everything I could on the renovation side to save money, but for things like replacing windows, Thumbtack was an awesome resource to get many quotes very quickly.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, Steven May was my realtor and he was excellent. He is a kick *** investor as well. He was very patient with me and my very strict buying criteria.