All Forum Posts by: Murali Jesudoss

Hi BPers,

I am closing my 4th deal early next month in Kansas City, MO. This is tenant occupied property where the tenant pays $1150 a month for last 2 years with previous owner. Lease ends by June and I am in dilemma, if to turn over and do light rehab or just continue the tenant with $1250 or so rent(which is what she think she can pay to stay).  Market rent is around $1400+ and I was hoping to get at least $1300 or so.

But if we do the numbers with PM team taking the 50% of first month and easy carpet cleaning and other turn over costs even without light rehab(cabinet painting and fix any safety issues), the $1250 may still win. But I still wonder, should I just turn over and do the minimum possible rehab to bring market rent and plan for maintenance issues or should I continue the tenant for additional $100 but potential $100-$200 rental below. Tenant is motivated to stay. I normally prefer to take care of the tenant even if it is cosmetic issues, but would like fair market rent. Please share your thoughts based on your experience. 

Thanks all :) 

Hello BPers,

I would like to share my 3rd successful closing this year.. Note that I started investing this year :-)

Single Family Home. Buy And hold Rental.

Ocala, FL - Ocala Park Estates, 2019 Built, 1008sq ft or so. 3B/2B/1G.

Price: $135K - It actually appraised only for $129K or so but the current similar or inferior listings are there for 150K :(

Conventional Loan with 3.625 rates 20% down before the rate hikes started (no points).

Not yet rented and hoping for $1300+ rental, Fingers crossed.

@Clay Lehman and team is awesome! Thanks to the community and the knowledge. @Nick Giulioni inspired me :-)

I have 2 more new constructions in the area, but they are closing in summer. No rates locked unfortunately and had to pay higher interest.

One more closing in April in KC-MO Buckner area through roofstock. Will share more details once closed.

@Clay Lehman

Thanks all! @Aj Parikh I actually used a webinar credit ($500) and they don't stack but I know there is referral credit and would not mind if it's possible to use for next deal. 

Hello All,

Thanks for all the help. Below is my 2nd deal closed today.

Purchase: Price 165K, Single Family, Buy And hold, Blue Springs, KC-MO. 1050 sq ft with finished basement with bar setup. 3B 2B 2G.

Conventional: 20% down with 3.5% No Points

Tenant Occupied - $1500 per month

I have been eyeing some roofstock deals for a while and it is very hard to find a good deal anywhere now. I think I am happy with the deal overall based on the rates the homes are going in MLS this area. Probably a win-win for seller as well.

The seller probably had this for couple of years and needs a new roof and HVAC down the road. But other than that, regular cosmetic fixes during tenant turn over. So price is not too low but not too high either to have cash flow as long as I don't run into issues immediately. 

Roofstock experience was smooth overall and no pressure on closing as they handle any extension as required. But the deal was closed just about 30 days as my lender is also awesome.

The best thing I like about the deal is the area as it has great schools and very good neighborhood and getting a close to 1% is really good.

Insurance came around $950 or so with 2500 deductible ($1M liability). $2000 property tax per year.

Overall really happy and have 2 more in contract in Ocala, FL 2019 built and new construction. Will share more once closed. Looking for 2 more and probably will have to wait for 3 months or so :-)
FYI - @Ramon Vazquez @Andrew Lynn

@Nina Erlandson I just closed my first property in KC-MO. I am using Northpoint Asset Management. Their fees are flat and no fee for lot of small things. They have been helping me to get a property by running rental numbers and advising on area as well before i gave them business. It is actually funny that the home I bought was actually maintained by the them with prior owner as well which we dint know :-)

@Karen Rothermich

Thanks a lot for sharing your experience. This makes sense now. Because the property I am looking at actually has a new electrical and a HVAC system except everything else being require fix. So the owner might have opted to go for this and now I need to check with them on how long this extra tax is due for.. You are absolutely right about the program being not investor friendly. Especially this may just show up as an increased tax but this is indirectly a lien on the property for an improvement that they have done. We might have able to fix the same for much cheaper during rehab rather than going to go through the higher taxes. This definitely helped a lot and I will ask my agent on the same. thanks again.

Hello BPers,

I was looking at a deal in Kansas City, MO (Blue Springs) and came across one which has $1500 extra property tax than the other ones. Futher checking the details of the property in the county web site, I observed that the actual property tax was similar to other ones and there was an add on in the same with $1400+ calling it out as MCDE tax. Google search mentions it about energy renewal program district which provides low interest and fixed rate option or something like that.

Question I have is anyone has more insight on this program and what it means for investors? 

Is it optional and the owner chose to use this program? So what he gets for paying this extra tax?

The reason I am asking is that I am closing a similar property 4 or 5 units across in the same street and I did not see this tax in mine. But this property is paying this for last 2 years. 

Any insights on this would be helpful..

Any CPA or real estate attorney who can clarify this? I reached out to few lenders and one of them who offered is saying that this is Fannie Mae form that buyer has to sign and leaving to my own interpretation (which means they won't clarify in writing). 

Sure. @. It was in Silver spring shores (34472), Pine Course.

@, LOL :-) Blue springs is literally super hot now and people are paying more than list price and list price is always on higher side. There was one MLS listing that was sitting in the market for a while due to overprice and the seller started from 220 and went down to 170. I made him an offer for 160 and he was firm @165. I was thinking about it and 2 days later someone else paid 170K :) Hope that was not you.. Now all listings are going above 185.. Wonder if I should have paid 165 :(

My Blue Springs deal is closing mid of next week and I will share once done.

Thanks all!