Rental Property #22 in Kansas City (Grandview)

[Cliff Harrison]

Merry Christmas and Happy Holidays.

Closing one more SFR before 2016 arrives. #22 is a 3/1 ranch needing a lot of interior rehab and roof, located in south Grandview, MO. It has a pretty nicely done converted garage and a large walkout basement. My plan is to put in two bedrooms and a bath downstairs, and add a bath upstairs. Plus full cosmetic remodel and some wall removal to open up the main floor plan.

This one will most likely be my most expensive rehab to date.  I got the house $20k, and anticipate sinking 25k into the rehab.  I expect the appraisal to be in the low $60s,and my lender will lend up to 80% on that not to exceed purchase + rehab.  Unless we run over on rehab should be getting all cash back out on refinance (no seasoning period required).

I expect to rent it at $1050 sometime in March.  This will be my 6th house in this particular neighborhood which is a C+ overall although the first five bedroom I've put on market in this area.  I don't expect any appreciation in this area but one can hope.  The taxes in this area run about $600 per roof annually but still are part of a decent school district (Grandview) compared to KCMO/Hickman.

Hope everyone had a great 2015 and that you set your goals high for 2016. I plan to shift towards small multifamily and higher end SFR after getting a few more cash flow SFRs.

Cliff

[Cliff Harrison]

Originally posted by @Jim Genis:

@Cliff Harrison, who is the lender you work with to provide 80% financing with no seasoning? I'm familiar with a couple of lenders who do similar but always appreciate knowing more. 

Send me a PM if you feel that's more appropriate.

Thanks.

Hi Jim, I get a few inquiries on this each time I mention it. I am currently working with Bank21. These are commercial terms, but I am getting a 20 year amortization. Note that I do not finance the initial purchase and rehab for my BRRR properties, that is on me.