All Forum Posts by: Kendall Short

Investment Info:

Single-family residence buy & hold investment in Kansas City.

Purchase price: $70,000
Cash invested: $5,000

2018 Purchase

2Bed 1Bath in Kansas City
$70k PP
$27k Rehab
Cash out Refi at $118,5 (4.875 rate) after 6mo and initially rented at $1000

Payment $769
Rent $1200

What really makes this old deal sweet is that I only have about $4-5k cash into the deal, but it is now valued at $155-$160k, so I am doing another cash-out to drop the rate down to ~4.125 and only increase the payment by ~$20 per month (75 LTV). Another $22k out to fund part of the rehab on the deal I am closing on in a week!

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

I had looked for a duplex for a couple years straight out of college. Moved back in with mom and the neighbors two doors down had mentioned they were looking to sell. Worked an off-market deal on this SFR and it's paid dividends ever since.

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

I had looked for a duplex for a couple years straight out of college. Moved back in with mom and the neighbors two doors down had mentioned they were looking to sell. Worked an off-market deal on this SFR and it's paid dividends ever since.

How did you finance this deal?

Conventional 30 Year Mortgage

How did you add value to the deal?

Complete rehab, open up walls, furnish with appliances, complete fencing.

What was the outcome?

Completed BRRRR within 6mo.

Lessons learned? Challenges?

Do not go cheap on the rehab or skip fixing an old AC. I had to replace the AC unit itself the first summer after renting it. Wasn't a huge expense, but it was the one thing that I didn't update and it came back to bite me!

Also had never used tools before and learned a lot about the labor side of things. Figured out what I like and don't like doing.

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

Cory Stewart of Weichert Graham-Welch in Shawnee, KS was my buyer's agent. Would recommend 10/10 times. Master negotiator.

Kansas City is still a hidden gem. 1.5-2 DSCR is very achievable, and the appreciation looks to have major continuity. With a major hospital downtown and 30+ colleges in the surrounding cities, the growth has been insane for those that have been in this market for the past few years.

Looking at buying a duplex in Saint Joseph, MO as a student rental before EOY. Using the funds from my cash-out refi that I'm currently in the middle of as well as any profit from my KCK rental and BNB. 

Would love to connect with you. Give me a shout and I can help out with some local deals as I’m in KC. 

@Mike D'Arrigo I agree that the appreciation is off quite a bit. I refi'd my property at $118,5k two years ago and a comp just two doors down sold for $170k. Increasing rent from 1050 to 1150 this coming month, as they are good renters. 

Awesome event. Great to meet similar minded individuals working to grow their real estate business. 

See you all next month!

Hi all,

Attached is the Real Estate Report Card for Kansas City, MO. I love looking at these and comparing cities around the country. The affordability index is going down compared to previous years, but the opportunities are still there for OOS investors as rents are going up and appreciation has been through the roof!

Kendall

I agree with Melinda. I suspect many more OOS investors to focus on Kansas City in the coming years. The ROI is extremely attractive compared to the coast, your money can stretch further, and the forecasted appreciation is going to make investors lots of money!

Shoot me a message with any questions.

@Andrew Postell are these your rates for investment loans only?

DEALS. Multifamily properties are extremely few and far between here. Mostly everything, even single families with little upside when it comes to flips, are being bought over asking with no contingencies. 

I'm researching direct mail marketing now actually. Off market is definitely the way to go right now.