All Forum Posts by: David Janosik

$2,500 was an Earnest Money Deposit that I sent to the TurnKey company at the very beginning. Then I also paid $550 to the lender to order the appraisal. 

I've been told that I can't get my $2,500 back so far. 

And no, the turnkey company starts with a "Br". 

The house is in the Kansas City, MO 64130 area and was built in 1966.
I'm not sure if this is a solid resource to see expected appreciation values or not, but it's one I've found:
https://www.bestplaces.net/housing/zip-code/missouri/kansas_city/64130

The TurnKey company appears to be unwilling to reduce the sales price at all, claiming that the opportunity is strong and that they believe in the offer regardless of the low appraisal. 

As a first time "want to be investor', this isn't the situation I planned on being in. Just not sure what to do. 

This is my first experience with a turnkey property / company. We had a purchase price listed at $94,950, but now that we are in the final stretch the appraisal came back at only $85K. My gut tells me not to proceed. $10K seems like too much of a hole to start from and the TurnKey company wont lower the purchase price. But I'm a first time investor and would like the insight of other members here on BP if possible. 

The mortgage rate I have is 4.625% (30yr Fixed) 

My issue is that now I have to bring almost $8K more to the table upfront to then overpay for a property by $10K. 

I would really appreciate hearing from others about this deal. Should I walk away from this deal and the $3K I've invested so far or continue? 

Appraised at Purchase Price Scenario:
Purchase Price: $94,950
Loan Amount (80% of $94,950) = $75,960
Original Down Payment (20% of $94,950) = $18,990
Monthly Rent: $895
Anticipated Cash Flow: $168.05 (after all expenses)

Revised Scenario based on Appraisal:
Purchase Price: $94,950
Revised Loan Amount (80% of Appraised Amount $85,000) = $68,000
Revised Down Payment (20% of $85,000) = $17,000 + $7960 (Additional Cash Req.)
Anticipated Cash Flow: $210.78 (after all expenses - see attached)
**As you can see, there is an increase of cash flow of $42.73 per month.

The additional cash needed to bring to the table from what you had originally thought had the property appraised appropriately is laid out here below;
Purchase Price - Revised Loan Amount = Cash Required - Original Amount of Cash Req. = Additional Cash Now Required
Equation: $94,950 - $68,000 = $26,950 - $18,990 = $7,960

I spent some considerable time on BP trying to find anyone that has worked with him and haven’t been able to.