Closing Rentals #13 and #14 Kansas City plus Updates

[Cliff Harrison]

#13 is a buy/fix/rent project near 140th & 11th in Grandview south of Main St. 3/1/0 Bought for $35,000 cash deal the rehab estimate is $8500. It will rent for $825-850 and with rehab will hopefully appraise over $50,000 allowing recapture of most of my cash when I finance it at 75% LTV with my portfolio lender.

#14 is an interesting deal and the most expensive house I have bought so far. I got a two year lease commitment at $1400 plus first months rent plus security deposits paid to me before I even bought the house.  House was $90,000 and needs almost nothing, it's in a very nice part of Grandview just south of Harry Truman around 128th.   This house also has had top tier foundation stabilization, waterproofing, and main drain sheathing done to it, has recently new roof and mechanicals.  Fairly bombproof compared to what I am typically buying. The family plans to stay for several years and has signed two year lease to begin with.  They are getting keys day after I close (tomorrow) and have paid up until August.  I was fortunate to get into this deal which was as much about the people as the property, although I have confidence in the property also I think it's worth a good 15% more than what I paid.

Other Updates..

#12 had a deposit down the day after I closed on it.  The couple moved in Saturday at $900 a month for two years.  I spent $700 extra on the make ready to upgrade from buff/polish to a complete sand but it now has the most beautiful re-finished hardwood floors.  I also put a little sweat equity in this one with 20 hours of removing wallpaper and paint prep for four rooms and the hallway.

#11 was rented out at $865 in South Grandview last week. I also just finished my cash-out refinance on #11. It appraised for $6000 more than I had in it so I ended up with a good portion of my costs covered even with 75% LTV.

#8 Remodel is complete and the house looks great.  You may think this is BS but the Very First Showing after I listed it the tenant was gaga over the house and put her deposit down that day and committed to a Two Year Lease at $825.  I have about $45,000 into this house after the rehab and I just started the loan process to cash out, hopefully the house will appraise over $50,000 and I won't have much into it at all.

#6 - draining issue at house seems resolved, ended up getting a buddy to do some dirt work with a small (stand-on type) front end loader. I had to buy a new AC unit though.

#9 - added a 220v circuit for tenant dryer in garage

On a general note I'm starting to be enamored with buy cash/fix up/rent and finance back out business model.  If the appraised value is high enough I can end up with very little to no cash in the deal, making it theoretically possible to purchase an unlimited number of properties.

Hope everyone is doing well with their projects.

Cliff