Kansas City Rental Prop Analysis

[Dan Tsunekawa]

I have been looking to invest in KC and i found a turnkey company with good reviews. Here is one of their listings, the big numbers are 
Sale price: $84k
NOI: $12,818

Cashflow with 70% Leverage: $8587/yr

Area: East 55th and Highway 71

These numbers seem excellent, almost too good. I have been reading a lot of posts about the KC market getting really tough to find good margins. This company has a handful of listings with similar numbers. Are their projections potentially way off? I have met with one of their investors and he said their projections have been very good for him.

Any advice would be greatly appreciated.

Year	Sq Ft. Estimated	Bed	Bath	Grade Opinion	Sales Price
1957	1632	4	2	C	$84,000.00
Rent	Projected Gross Revenue	Projected Tax	Projected Insurance	Mgmt. Fees	Projected Maintenance
$1,250.00	$15,000	$182	$500	$1,200	$300
Projected NOI	CAP %	monthly mortgage(70% LTV and 6% rate)	Cash investment	cashflow	Cash on Cash
$12,818	15.26%	$352.54	$25,200.00	$8,587.57	34.08%

[Eugene Lee]

Hi Dan,

The maintenance number and capex estimates look relatively low. Many like to use 10% of rent for that value, others at 185/month and still others 1 dollar per square foot per year. Hope this helps.