Example of Real Estate Investing in Kansas City

May 9, 2019 Off By Real Estate Club of America

Please note that we are NOT the original writers of this blog post. All credit goes to the original writers. Find the original post as published at this link: https://kcinvestmentproperty.wordpress.com/2019/05/03/example-of-real-estate-investing-in-kansas-city/

Please note that we are NOT the original writers of this blog post. All credit goes to the original writers.

Sell in Prime Condition then $80,000 – $85,000 *

averages.

There have been 91 possible rental months because the property has come on line. And the rents have never been under $775/mo…we are promoting at $825 and have people. So let’s say that the home has had 5% vacancy (our MO average). That means that home has been leased 86 months at $775/mo.

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Those two items, along with a base, are the most expensive repairs a house will need and the repairs last twenty years, or so, in most cases. It is highly likely before the life of either is dissipated into a point of needing re-replacement that COMPANY X will eliminate this property.

RPR, a fairly reliable price aggregate algorithm (more dependable than Zillow because it uses actual MLS data) sets the purchase price of the home at roughly $74,000.

And then look at the Statistical Market Analysis report, paying careful attention to the

This example shows the power of time when owning rental property.

In any case, selling as is, selling in top condition or continuing to lease, COMPANY X is winning big with this “average” property.

Realest Tax values have the price at $50,000.

Therefore Gross Rents have brought in $66,650 m/l.

SINCE 2011

It’s my view that if this house needs a furnace and a roof that yes, that does cost a lot of money. Yet, it is money well spent regardless of whether we lease or market.

The home has had an performance since then. It hasn’t and it hasn’t been a puppy.

*This is with an estimated $37K being spend on upgrades.

Sell “As Is” the value of the home is $40K m/l

In other words, after ALL expenses the house has already paid for itself.

This home was purchased with cash on 6/17/2011. Then the house was remodeled and leased within a period of about 100 days all out ….

The purchase price plus closing costs plus all repairs totaled $39,280.

It is my hope that this can help us all to learn just a bit more about why investing in real estate is such a fantastic, long term thing. And that keeping homes in good, safe arrangement is whether you selling or are leasing because either way, the repairs will have to be done at any point. And while the house is in service it should be kept up for the protection of the asset, the benefit of the owner and the benefit of the tenants.

This is the tale of a small, two bedroom, 1 bath rental home in Raytown, MO.

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