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📈 Check out our new property analysis accuracy down below 👇🏼
Welcome to this edition of Dealsletter! We're excited to introduce a new feature: at the end of every newsletter, you'll now find a "Grok-4 Analysis on Accuracy of All Data" section, where we've leveraged Grok-4 from xAI to independently verify and estimate the accuracy of all property details, financials, and market data presented. This ensures the information we deliver is true, reliable, and trustworthy for our readers, because your investment decisions deserve nothing less. Dive in below for the latest deals!
Kansas City Brighton Crossing - CLASS A 2020 WITH 13.86% IRR
📍 Address: 5711 NE 80th Ter, Kansas City, MO 64119
💰 Price: $2,800,000 ($155,556/unit) | Target: $2,660,000
🏠 Property: 18 Units (6 Studios + 12 1BR), 11,349 SF, Built 2020
🏦 At Ask: 3.83% CoC, 13.86% IRR | At $2.66M: 4.89% CoC, 16.79% IRR
Why This is a Great Investment:
Brand new 2020 Class A property offering institutional quality with immediate value-add opportunity through below-market rents. At $2.8M with 33% down and favorable 5.5% financing (per OM), property delivers current 5.87% cap with $1,064/month average rents sitting $46 below proforma market of $1,110/month. Kansas City leading nation at 3.1% rent growth while new supply down 57% YoY creates constrained market with strong pricing power. Resident Benefits Package at $33/month per unit plus RUBS utility recovery provides ancillary income optimization.
This represents rare combination of brand new construction quality with immediate rent upside in supply-constrained growth corridor.
Investment Analysis (33% Down per OM) 📝
Investment Metrics | |
|---|---|
Purchase Price | $2,800,000 |
Down Payment (33%) | $926,167 |
Closing Costs | $28,000 |
Working Capital | $25,000 |
Total Cash Required | $979,167 |
Loan (5.5%, 10yr, 30yr amort) | $1,873,833 |
Current NOI | $164,329 |
Annual Debt Service | $127,673 |
Year 1 Cash Flow | $36,656 |
Cash-on-Cash | 3.74% |
DSCR | 1.29x |
Performance Metrics 🚀
Current vs Proforma | |
|---|---|
Current Avg Rent | $1,064/month |
Proforma Rent | $1,110/month |
Monthly Upside | $46/unit |
Current Cap Rate | 5.87% |
Proforma Cap Rate | 5.90% |
KC Rent Growth | 3.1% annually |
5-Year Projection (3% Growth) 📈
Year | NOI | Cash Flow | CoC | Cumulative CF |
|---|---|---|---|---|
Year 1 | $165,185 | $37,512 | 3.83% | $37,512 |
Year 2 | $170,827 | $43,154 | 4.41% | $80,666 |
Year 3 | $176,653 | $48,980 | 5.00% | $129,646 |
Year 4 | $182,667 | $54,994 | 5.62% | $184,640 |
Year 5 | $188,876 | $61,203 | 6.25% | $245,843 |
Exit Strategy (Year 5) 💰
Sale Analysis | |
|---|---|
Year 5 NOI | $188,876 |
Exit Cap (5.75%) | $3,284,796 |
Less Costs/Payoff | $1,929,483 |
Cash at Sale | $1,355,313 |
Plus 5-Year CF | $245,843 |
Total Profit | $621,989 (63.5%) |
5-Year IRR | 13.86% |
Equity Multiple | 1.83x |
Price Sensitivity Analysis 📊
Purchase | Cap | Year 1 CF | CoC | IRR | Verdict |
|---|---|---|---|---|---|
$2,660,000 | 6.18% | $43,038 | 4.89% | 16.79% | BEST ✅✅ |
$2,730,000 | 6.02% | $39,821 | 4.24% | 15.17% | GREAT ✅ |
$2,800,000 | 5.87% | $36,656 | 3.74% | 13.86% | GOOD ✅ |
Critical Success Factors:
Brand new 2020 construction eliminates 5-10 year capex risk
Below-market rents provide immediate implementation path
KC leading nation in rent growth (3.1%) with deliveries down 57%
32.5% OpEx ratio excellent for newer property
Favorable 5.5% financing (per OM) versus typical 6.75%+ commercial
Recommended Strategy:
Offer $2,660,000 (5% discount) targeting 16.79% IRR
Implement rent increases to $1,110/month on turnover
Maximize RBP enrollment at $33/month across all units
Hold 5-10 years for compound wealth creation
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San Diego Cherokee Duplex - $1.04M NORTH PARK LIFESTYLE PLAY
📍 Address: 4274-76 Cherokee Ave, San Diego, CA 92104
💰 Price: $1,039,000
🏠 Property: 2 Detached Homes (3BR/1BA + 2BR/1BA), 1,716 SF, Fully Remodeled
🏦 Year 1 Out-of-Pocket: $4,604/month | True Cost: $3,524/month | 3-Year ROI: 137%
Why This Requires Lifestyle Premium Assessment:
Fully remodeled North Park duplex offering walkable urban lifestyle but requiring significant out-of-pocket versus traditional house hack returns. At $1.039M with FHA 3.5% down requiring $74,691 total cash, living in 2BR unit while renting 3BR for $3,995/month creates $4,604/month out-of-pocket cost - representing $1,400-$1,600 premium over market rent. However, monthly principal paydown ($2,100), appreciation ($2,598), and tax benefits ($1,100) create true cost of $3,524/month while building $177K equity over three years.
This represents lifestyle-focused house hack trading immediate cash flow for premium location wealth building in desirable North Park neighborhood.
House Hack Analysis (3.5% FHA Down) 📝
Investment Metrics | |
|---|---|
Purchase Price | $1,039,000 |
Down Payment (3.5% FHA) | $36,365 |
Closing Costs | $20,780 |
Total Cash Required | $74,691 |
FHA Rate | 6.5% |
Monthly P&I + MIP | $6,916 |
Total Monthly Payment | $8,867 |
Monthly Economics 🚀
Cash Flow Analysis | |
|---|---|
Rental Income (3BR) | $3,995 |
Total Expenses | $8,599 |
Net Out-of-Pocket | $4,604/month |
Market Rent (2BR) | $3,000-$3,200 |
Premium vs Market | $1,404-$1,604 |
True Cost Calculation | |
|---|---|
Out-of-Pocket | $4,604 |
Less Principal Paydown | -$2,100 |
Less Appreciation (3%) | -$2,598 |
Less Tax Benefits (50% rental) | -$1,100 |
True Monthly Cost | $3,524 |
Net Wealth Building | -$1,194/month |
3-Year Wealth Building 💰
Equity Timeline | |
|---|---|
Initial Investment | $74,691 |
Year 3 Principal | $80,760 |
Year 3 Appreciation | $96,343 |
Total Equity | $177,103 |
3-Year Return | 137% |
Critical Reality Check:
Premium North Park location commands $1,600/month over renting
Fully remodeled turnkey condition requires zero additional work
In-unit laundry both units (rare SD amenity)
Need $12K+ monthly gross income for qualification
Better for lifestyle-focused buyers versus cash flow maximizers
