Our first 4 doors in 45 days.

[Adam Hays]

My partner and I closed on our first property 3/30 and are under contract to close 4/19 on another. 

Property #1: 

Duplex, 1 Bedroom 1 Bath each located in 64053.
Purchase Price (Cash): $45,000 (asking price $49,900)
Closing Cost: $543
Repairs Needed: $500 
Updated Appliances: $500
Gross Monthly Rent: $925

Unit A was empty and had just been given a makeover, new carpet and paint, new counter top, new shower insert. Big bonus also while under contract the seller decided to install a new furnace to the tune of $4800!!!! She had a tenant who was ready to rent for $500 a month and is on section 8. He signed a month to month lease with us and paid out of pocket for the first month to reserve the Unit until we can get his voucher transferred.

Unit B has inherited tenants who have been there 4 years and really want to stay "forever". They were paying $350  on a month to month. I told them they could stay but I would be increasing rent to $425. I asked her if she had any issues with the property. She told me about having to manually defrost the refrigerator once a week. I told her I would take care of it and showed up the next day with a "newer" refrigerator I purchased with the $500 cash from Unit A. I replace the stove and Refrigerator in Unit A with that money as well.  

Property #2:

Duplex, 3 Bedroom 2 Bath each located in 64015. (literally 2 minutes from my house)
Purchase Price (Cash): $115,000 (asking price was $135,000)
Closing Cost: $ 646
Repairs Needed: $750-$7000 (it depends) 
Gross Monthly Rent: $1375 (should be, and will be around $1800)

This property was listed incorrectly as 2 bed 1 bath each at 135K which may be why out of town or maybe even local guys didn't have interest. Its in an area with 8&9/10 rated schools. And also in an area where we can expect some appreciation unlike the previous property. I was a little hesitant about this one but I knew the seller was motivated. They live in CA and have had 3 contracts fall through so I knew they were ready to sell. I feel bad because they have a property manager that has really done them a disservice and let the property go downhill. The units are rented below market rates and one tenant is destroying their side. But "hey they pay every month on time" the listing agent / manager says. It has some cracking in the foundation but came with an engineers report suggesting only epoxy injecting, maintenance to gutters, fill dirt, and proper drainage to direct water away from foundation......duh!
I offered 120K and they accepted the same day(should have gone lower). After the inspection report indicated some roof damage from hail, an improper connection to the electrical panel from one of the AC Units, and some minor plumbing under the sink type leaks, as well as some longer thought about having to most likely evict the tenant destroying the other side,  I decided to use that as leverage to reduce the offer. Against my realtors advice I told her to adjust it to 110K hoping to end up around 115K. It only took them a day to counter at 115K which I accepted. You won't get what you don't ask for, I'm glad I trusted my instincts.

Unit A Just went under a 14 month lease for $700 a month. If they don't default then we will just have to wait to get those rents up. She will be a good tenant and I can tell by the way she was moving in she will take care of the property. 

Unit B is where it depends. It's currently on a month to month for $675, maybe.... The one year lease the listing agent sent over expired and I don't have anything showing they renewed as month to month. Regardless, Our plan is to give them the option to stay but rent is going to be $900 a month. Best case scenario they say ok and they can continue to live in their self created disaster zone. Otherwise we are looking at a possible eviction and around $4k-$6k remodel to make it market ready at a $900 rate.

Sorry for the lengthy post. I look forward to any feedback.

Adam