Hi all,
Apologies for the delayed response. First, I appreciate everyone's feedback. Hearing everyone's thoughts has made me look more into the numbers. I also want to say that while I am searching for a property in KC to buy, I will not be making a purchase until early next year when I move back to the area. That being said, I am fairly unfamiliar with the area (other than what I've read on BP) and I have not even toured the place nor have I had it inspected. One unit has been remodeled and looks nice and the other 3, although not remodeled recently are still in good shape.
Soo... as for location, the zip code is 64123 and it is fully occupied but the landlord will not release financials ATM. I know it was mentioned that I could not get the 3.5 down payment without living there. I intend to live in the place I purchase and have updated the report to reflect the 3 unit rent rate. Regarding the rent, I just used the average rent for 2 bedrooms in KC (from rentcafe) and decreased it by $50. Is this not a common rate to get when renting in KC?
Updated numbers:
*note I've ran this a few times so the numbers may be off again somewhere*
$145,000PURCHASE PRICE
| Purchase Closing Costs | $3,000.00 |
| Estimated Repairs | $15,000.00 |
| Total Project Cost | $163,000.00 |
| After Repair Value | $170,000.00 |
| Down Payment | $79,000.00 |
| Loan Amount | $67,320.00 |
| Loan Points | $1,320.00 |
| Amortized Over | 30 years |
| Loan Interest Rate | 5.400% |
| Monthly P&I | $378.02 |
| Total Cash Needed | $97,000.00 |
| Monthly income: |
| Rent: | $2,700.00 |
| Other: | $0.00 |
| Total Monthly Cashflow using 50% Rule: | $971.98 |
