All Forum Posts by: JJ Buckner

Thank you @Kristin Caras!!

@Melba Chambers Thank you and great question! 

1. As mentioned above, I already have money sitting in an account that will cover any expense or vacancy for this property.

2. The cash flow from this property will all be going directly back into the business (to buy more properties and pay down mortgage) so no need to pull out the additional money.

First, I want to give a HUGE thank you to those of you that have inspired me and a HUGE thank you to Biggerpockets for being one of the main reasons I feel comfortable to make this large jump into becoming a Real Estate Investor. I am currently under contract for my first property and will be closing in September. This has been a long process for me but it has finally happened. I have been primarily looking in the Kansas City market and found out real fast just how hard it is to find a deal right now. Everyone and their brother's nephew's dog is buying real estate in the KC area right now. I have been outbid on idk how many properties but did not let that get me down (although it was tough at some times). 

Just wanted to jump on here real fast and give a quick thank you to Biggerpockets and the REI community for all that they do.

Here is a snap shot of the numbers for the deal. Note: I already have money sitting in an account for any repairs, vacancy, etc.

@Bryan Blankenship Thank you! YES!! Next goal is a multi family.

Thanks @Ben Bradmon Jr

Investment Info:

Single-family residence buy & hold investment in Independence.

Purchase price: $81,500

Cash invested: $25,000

Purchase Price: $81,500
Down Payment: 25% ($20,375)
Closing Cost: ~$5,000

Rent: $950 (Expected, close in June)

30 Year Mortgage w/ 5.125% Rate
Property Tax: ~$850 annually
Insurance: $755 annually
Vac/Repairs/Capex: 21% of Rent (~$200/month)

Monthly Cash Flow: ~$210/month

CoC Return: ~10%

What made you interested in investing in this type of deal?

I want to build up enough cash flow to be Financially Independent and I feel RE is the fastest way I can get there.

How did you find this deal and how did you negotiate it?

Found this deal on the MLS and had a realtor

How did you finance this deal?

30yr fixed conventional

How did you add value to the deal?

Still in the process, the wife and I will be driving to Kansas City for closing to do some repairs and improvements to help increase rent.

What was the outcome?

Got through inspections, now just waiting on appraisal before closing.

Lessons learned? Challenges?

Should have done this a long time ago...

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

YES!
Real Estate Agent: Ariel Rank with RE/MAX
PM: Teresa Penner with Penner Property Management

@Ryan Carter fellow engineer here as well. I just started investing in the KC area (finally pushed myself through analysis paralysis for the past couple years)... @Lane Kawaoka listed some great areas, I wanted to dive in a bit more into the KC area for you. Before purchasing my first investment (buy and hold), I was looking in the following areas: Raytown, Grandview, Independence (some good areas and some bad), South KC, Belton, and Oak Grove. Lee's Summit, Raymore and Blue Springs were also on the list but it is a lot harder to get numbers to work in those areas. This thread is great for looking and good and bad zipcodes in the area: https://www.biggerpockets.com/forums/48/topics/276800-kansas-city-missouri-zip-codes

I ended up finding a deal in the Independence area. I live about 4 hours from KC and have a team I have been working with if you want more information (realtor and PM), feel free to send me a message.

Best of luck on your journey my friend!

Been looking for something like this! Do you know where I can get more information (location, start time, etc)?

Hey @Michael Hudelson I am in the process of closing on my first rental property in KC (Independence to be exact). I am investing from long distance as well, only about 4 hours but I used to live out there. I could get you in contact with my realtor and PM if you are interested. Send me a message if so. Best of luck on your journey!

@Xavier Stanish Thank you! I 100% agree with you on that.