South Kansas City - Deal or no deal?

[Dror Engel]

Hey everyone - 

looking to put an offer on SFH in south Kansas City (Terrace Lake Gardens). Appreciate your inputs and feedback

Location: outside 435 loop and on the west side of 49. Hickman mills school district

Property: built 1959, 3/2, 1400sqft, 1 car garage

fully renovated (all new besides A/C)

Math:

Price: $110k fully rehabbed and tenant in

Rent: $1150/mo

Estimated cash flow: ~$290 (allowing for vacancy, maintenance, taxes, insurance, PM fees)

COC: 15%

CAP: 8.3%

The numbers loos good but I have two main concerns:

1. this is slightly busy street (2 lanes each direction) - plus is easy access to highway but less attractive to potential tenants and buyers.

2. HM schools are not good. Elementary is OK but middle and high are very bad.

Appreciate your feedback on the numbers and any insights from locals. Thanks a lot BP!

[Matt Pritchard]

Hey @Dror Engel .  That's not a bad neighborhood at all, although being right on Red Bridge is probably the least desirable part of the neighborhood.  Any of the other streets wouldn't be bad at all.  

I would double check the rent though, I didn't do too much digging, but rentometer dot com had that area quite a bit lower with current rents.