Kansas City 7 SFH deal

[Zachary P.]

Hi everyone this is my first post on bigger pockets.  However I have been lurking around the site now for approximately 6 months and have learned so much!!!

The deal is for 7 single family homes in Kansas city for 126,000 dollars. I would assume the loan already in place which is 35,000 down with a monthly payment of 682.50, and a balloon payment due in 5 years. SFH are as follows:

2bed/1bath

3bed/2bath Currently rented for 600

2bed/1bath

3bed/2bath

3bed/2bath

2bed/1bath Rented for 450

2bed/1bath Rented for 500

Taxes and insurance yearly payment of= 4,680

Each of the properties that have not been rented need somewhere between 900-2500 dollars in repairs to be rentable. 

After looking on craigslist and rentometer.com I am going to assume an average rent of 500 per door.

I was told tenants pay all utilities.  Does this sound right?

Monthly rent 3500

-350(10%vacancy)

-350(Property management 10%)

-390(taxes and insurance)

-682.50 (debt service)

=1727/2(repairs)=863.75 Cash flow per month

Down payment 35,00( I think I can talk them into covering closing costs) + 5000 repairs= 40,000 down

Cash flow 863.75x12=10,365/40,000=25% cash on cash return.

Let me know what you think.  Also curious about the neighborhood I have attached map with the neighborhood outlined, see link.  Thank you

http://s28.postimg.org/r92kp7shp/Kansas_city_7_house_deal_neighborhood.jpg

Zach