Kansas City, MO Buy and Hold - Good Deal or Red Flag?

[Megan Miller]

Hi All,

I came across a property I found through a wholesaler at a local Real Estate Investor meeting, it's not on MLS. It's been rehabbed and is move in ready. Here are the details:

Purchase price: $17,000

2 Bed, 1 Bath, 760 sqft

Expected rent: $600-650  

Class C Neighborhood, turn-key, 10% property mgmt fees

Given the price, we'd be able to pay cash for it, so we'd have no financing expense. After taxes, prop mgmt, CapX, utilities, etc. it would cash flow $300+.

Being from CA, this price point almost seems too good to be true. This would also be our first out of state property as well. Any red flags I should be looking for here or does this sound like a good deal? 

Thanks for your input!