In the last few days I’ve had a California real estate investor close on two houses he has purchased here in Kansas City. Both are in the Waldo neighborhood which is a pretty reliable, older neighborhood in Kansas City that is convenient to a lot of the things tenants like. But closing on a house, especially two, in November has it’s challenges.
For instance, both properties need some maintenance to get up to rental standards. One of the properties will take about 8 days and $5,000 while the other more like 5 days and $3,500. Then we’ll pop a For Rent sign outside. Now how is that gonna go?
Thanksgiving is just a couple of weeks away now. Then Christmas and New Year’s are just around the corner. There are holiday parties, stress to meet the bills for Christmas, etc.
So when we bought these houses we took into account a few things;
- That these houses needed maintenance. The purchase price had to cover the repairs plus a little something something for the owner for taking the trouble.
- These houses would have to make sense, financially of course, before committing to buy.
- These houses are expected to be vacant until February.
Notice I said “expected to be vacant.” If we get it rented in November or December or January, well, GREAT! But when doing the numbers we just assumed no renters until February. And that could even be March. You never know, but I doubt it.
So as you might imagine these were two pretty sweet buys to pay for repairs, add in instant equity and to compensate for no rent for three months.
That is how you buy investment property in Kansas City in the winter time. 😉