Kansas City, Missouri Rental Property Analysis HELP!!!

[Destin E. Thomas]

Hello,

Rookie investor in need of some guidance with regard to a potential long-distance rental property in Kansas City, MO. My aunt is going to be selling her Single Family Home (currently off-market) and wants about $220k-$225k. It is in good condition and she says just needs a new roof (I’d still get it inspected), and given the closest comps in the area are about $260k at minimum, I inquired about buying it from her (for both the discount and the immediate equity of about $35k-$40k).

This would be my first long-distance rental property (and my first property in general), so I’ve run the analysis numerous times and just can’t seem to make the numbers work (even with the discounted price). For those of you experienced investors (and even better anyone based out of Kansas City, MO or with experience investing in this city), do you have any opinions/suggestions/critiques about the inputs I used for my numbers (below)?

P.S. I used a lot of conservative rules-of-thumb figures (given that I am a rookie) in my numbers obtained from Brandon Turner’s books, as well as from podcasts, webinars, blog posts, and YouTube videos of other investors, until I gain the experience to know how to calibrate my numbers organically.

P.P.S. No seller/owner financing because she is getting too old and sadly might not be around much longer, so she's not going to want to postpone cash payout.

If anyone can provide any input, it would be very much appreciated. Thank you!!

Purchase Price: $225,000

Closing Costs: $5,625

Misc. Costs: $2,500

6-month Cash-Reserve: $9,204

6-month Holding Costs: $6,000

Approx. ARV: $260,000

Approx. Repair Costs: $23,000

Down Payment: $56,250 (25%)

Interest Rate: 3.8125%

Points: 2%

Loan Term: 30 Years

Approx. Gross Rent Income: $1,743

Property Taxes: $277/month

Landlord’s Insurance: $238/month

Repairs & Maintenance: 10%

Vacancy: 8%

Capital Expenditures: 10%

Property Management Fees: 10%

Electricity: $0 (tenant to pay)

Gas: $0 (tenant to pay)

Water & Sewer: $0 (tenant to pay)

HOA: $33

Garbage: $10/month

Lawn Care: $100/month

Pest Control: $50/month

Snow Removal: $50/month