Rental Property Analysis- Kansas City

[Chris Nordella]

I appreciate any advice. I'm looking at 3 homes currently. Here's the break down. All are tenant occupied with rents listed. All are turnkey sales. All are near Cerner's new campus. Note: all property tax & insurance was quoted from the company, not verified.

Property #1- $89,500

Down- $17,900

Closing Costs- $2700

Gross Rents- $11,400

Property Tax- $700

Insurance- $500

PM- $912

Maintenance & Vacancy- $912

Cash Flow- $313.90 after expenses

Cap- 9%

COC- 18%

Property #2-

Property #1- $75,000

Down- $15,000

Closing Costs- $2700

Gross Rents- $10,800

Property Tax- $944.16

Insurance- $600

PM- $864

Maintenance & Vacancy (8%)- $864

Cash Flow- $305.32 after expenses

Cap- 10%

COC- 21%

Property #3- $94,500

Down- $18,900

Closing Costs- $2700

Gross Rents- $11,940

Property Tax- $633

Insurance- $600

PM- $955

Maintenance & Vacancy- $955

Cash Flow- $327.15 after expenses

Cap- 9%

COC- 18%

I'm going to work on getting CC covered to increase COC return. In B+ neighborhoods supposedly. I've checked Crime and Schools and it looks really good.

Thoughts?

[Andy Robison]

@Laura Williams I can answer some of those questions. The area is appreciating there are developers who are coming in buying a few houses letting leases expire and demolishing and building new. At least that is the current plan as I understand it. With its location to the new Cerner Complex (16,000 jobs to be added in phase one) In a few years it will be an awesome area and has one of the few school districts in KC that never lost accreditation. For rental potential I'd say no longer than 3 weeks vacant. In the past 12 months there has been one car stolen, two robberies and 4 assaults. Not really a horrible area, but its not prairie village either. Currently that area is blue collar workers with a few white collar in the mix personally I'd grade it around a solid B.
Literally only know this because the house next to my best friends just went up for sale last week and did some research on the area to see if it would make a good rental ;) Sadly it didn't they wanted to much for it and it needed to be gutted.