First Kansas City Turnkey Purchase

[Chris Nordella]

Hey Everyone, 

I figured I would document my first turn key purchase in Kansas City, MO. I read another members similar blog and found it very helpful. I won't be naming company names unless through private message for feel free to ask. 

I researched a number of turn-key companies before narrowing it down to a few. I also found an area that I was comfortable enough (a BP member drove the area and gave me the low down) with and pulled the trigger on one. 

My wife and I executed the contract on 2/10. The lender that BP suggested works weekends & as a Realtor myself, I really appreciate that. Also, every company & seems agent I have spoken with seems to know and respect this guy. Locked in my rate this morning (5% w/ 20% down). I was tempted to by down the rate to 4.75% since I negotiated $1600 in closing cost credit but realized I'd rather keep the maximum cash in my pocket. The more cash I keep, the quicker I can buy #2 if all goes well. And really after looking at the number, the .25 difference really wasn't worth it in my opinion.

Also, my contact at the turn-key company and title company they chose has been working this weekend as well. There has already been a string of emails going back an forth this morning. We have reach out to the physical inspection company to schedule the inspection. This company was also chosen through BP suggestions and vetted through reviews and past clients. 

Off to a good start I suppose. Here are my research numbers. I know it always looks better on paper so we will see in 12-13 months where the numbers actual fall.

Purchase Price: $85,000

Down Payment: 17,000

Estimated closing costs after credit: $1,100ish

Total Cash Out of Pocket: $18,100ish

Mortgage Payment: $365

Rent: $948

Gross Rent: $11,376

Estimated Expenses:

Property Tax: $486

Insurance: $675

Property Management: $910

Vacancy: $910 (8%)

Maintenance: $910 (8%)

NOI- $7,484

Cash Flow: $258.66

Cap Rate- 9%

COC Return: 17%

Again, follow along as this newbie enters the world of REI.

If you comment, please make it constructive. None of that negativity please. 

[Chris Nordella]

This has been a question I have received a lot. The company I went through is USREEB. I had looked a quite a few. I narrowed it down to KC Metro Homes and USREEB. Mainly came down to their inventory and the deal I was able to get. Both companies I was comfortable after looking at reviews, speaking with investors who'd used these companies with success, & speaking with their team. The lender that I decided on is Shawn Huss with Chemical Bank. He was highly recommended from a number of people. Since they like knowing who referred you. Mention my name please. I was also referred to REI insurance but a number of people too.