Investment Info:
Single-family residence buy & hold investment in Kansas City.
Purchase price: $145,000
Cash invested: $3,000
Purchased this Single Family Home on the MLS for $145,000 in Kansas City in a area called Waldo. I already owned 2 houses on the street so once I saw it listed for sale way under market value I knew I had to have it! Purchased vacant. Rehab was $8,692 - foundation work, touch ups of paint, new tile in kitchen & LVP throughout the main floor, and new appliances. Purchased with a hard money loan. Signed a lease with tenants before the first payment was due. 7 months later the appraisal came in at $220,000. 75% LTV cash out refinance left me with just $3,000 in the deal. Cash flow of $272/mo gives me Year 1 Cash on Cash return of 105%. BRRRR
What made you interested in investing in this type of deal?
BRRRR opportunity 4 doors down from where I live and on the same street as my Air BNB.
How did you find this deal and how did you negotiate it?
On MLS and I am a licensed agent so I get to represent myself.
How did you finance this deal?
10% down hard money loan.
How did you add value to the deal?
Light interior rehab.
What was the outcome?
Cash flowing SFH and got all my money back 7 months later.
Lessons learned? Challenges?
Just transitioned from W2 to 1099 employment so the cash out refinance was a bit tricky.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I am the agent - Of course I recommend myself!
