Closing rental #9 Today

[Cliff Harrison]

Closing on rental #9 in Kansas City area today. This one comes complete with what appears to be a quality tenant (pays on time). It does need some capex in form of new roof. It's located in a good working class area in south grandview very close to Belton around 71/150 interchange. This is also the first property with my new portfolio lender so I have it on commercial type of terms (5 year ARM). The rent is currently a bit below market at $700, which I think I can bring up to $775 and still be offering good value for the area. I bought the house $43,000 and will spend $4500 on roof, gutters, and a few other things. Taxes are $500 and insurance is $560. On the downside, the tenant has a dog and cat.

Other Updates:

#8 - signed contract for renovation and started demo.  Need to put a solid fence across the back yard so potential renters don't have to see the mother-of-all-junk-yard-dogs hanging over a three foot chain link 

#7 - rented it out last night along with #6. 

So, other than #8 which is expected to be vacant for another four weeks during renovation, all the inventory is rented out, including today's closing.  I'm about 1/3 of the way to my goal regarding number of rentals I would like to hold.

thanks

Cliff