New Guy in Indianapolis
Hello, BiggerPockets! I'm Coire from Indianapolis, IN. I have decided to quit my job and change careers! I don't know if I will switch to REI, but I am here to watch and learn about the industry to see if it is a good fit for me. I have informed by boss already and my exit timeline is approx 3-6 months.
My first introduction to real estate was the purchase of my first home a little over 3 years ago. I purchased a HUD home which was in need of renovation. I applied for and received a 203k loan to complete the project by the skin of my teeth. I went 10k over budget and got it "done" on the last day possible. After that I swore I would never get involved in real estate again. Of course, I thought I would be working the same job for the rest of my life, too!
The problem was I actually enjoyed it...or I am so far removed from it that I don't remember the agony and turmoil that can be a home renovation. I think I would like to get involved in another (if not many more) property. My first goal is to sell my house. I would like to purchase and move into a duplex or multi so I can at least cover my rent and possibly utilities while figuring out what to do with the rest of my life. After selling my house, I should have enough money for a down payment on something livable and enough to start investing and/or renovating something. I am lucky to have a "sugar momma" to help me through this process. She has been extremely encouraging and can support our basic needs with her income. She says its my turn :)
Advise is welcome, but not necessary. There are enough articles and forum posts out there to keep me busy for a while.
Welcome to BP @Coire Fox ! What areas of Indianapolis do you plan on looking?
Sugar momma really would like to be in Irvington or Fountain Square, but we are open to any good deal that might come up. Broad Ripple or Butler area wouldn't be bad either. Some place that would support duplex style living after we are done with the place and ready to move on.
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#1 Classifieds Contributor
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welcome to the site.
@Coire Fox Those are definitely good areas to look in. Good luck. Let me know if I can be of help.
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Hey @Coire Fox welcome to BiggerPockets! You've definitely come to the right place to learn more about investing. If you haven't yet, be sure to check out the The Ultimate Beginner's Guide to Real Estate Investing and The BiggerPockets Podcast. They are both great at learning the fundamentals.
Oh - and don't forget to set up your Keyword Alerts!
See you around the site!
Welcome @Coire Fox !
- it's always good to see another Hoosier utilizing this great site!
Of course, you need to read The Ultimate Beginners Guide to REI here on BP
If you haven’t already, please read/listen to these books ASAP!
Rich Dads Increase your financial IQ
http://flip2freedomacademy.com - free e-book
Flip2freedom episode 77[http://www.flip2freedom.com/a-3-step-formula-to-a-successful-balanced-and-insanely-profitable-2012/] - podcast - LISTEN TO THIS TODAY!
Wholesaling101 You Tube Channel
Kent Clothier – You Tube Memphis Invest channel
Hey @Coire Fox welcome to BiggerPockets! This is the perfect place to learn more about REI. You can check the Learn tab above to get some free resources on getting started.
That sounds like a really good plan. It was smart to buy and HUD house 3 years ago too. Irvington and Fountain Square are awesome areas because there is very established pockets and pockets with huge opportunities for appreciation. One thing to consider is getting one of those triplex / duplexes that used to be a single family house. Live in one unit, rent out the others. When the time is right convert it back into a single family house and sell for top dollar OR just keep living in it. I own 2 triplexes in fountain square right now that used to single family houses. They are on the outskirts of FS so the high comps aren't quite there yet. So I plan to hold them for 3 - 5 years, then convert back to singles and sell for 200k+.
If you want help selling your house let me know, we have agents in our office who would be more than happy to list it for you. Also, if you have any questions about Fountain Square or Irvington or other areas I can help in that department. Ms. Sugar Momma might also like Windsor Park which is just north of Woodruff place, or possibly Cottage Homes just east of Mass ave.
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Welcome to BP community @Coire Fox It is a great place to meet new friends and learn about various aspects of real estate and more.
Find and connect with other BP members that are in your area: http://www.biggerpockets.com/meet
Wishing you the best!
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@Ryan Mullin I know generally multifamily can be difficult in Indy. Do you find them to perform well in Fountain Square, Irvington, and other similar areas in Center Township?
Thanks everyone for all the feedback and the warm welcome!
Yes, Irvington has been long established and I have seen plenty of doubles and 4 - 6 plexes perform really well, attracting tenants that are students and young professionals. Same for Emerson Heights which is basically an extension of Irvington.
Fountain Square 5 years ago a double or multiplex would be a nightmare attracting the low end tenants that end up trashing the place, etc.. Today thats not the case. You can attract some really good tenants if you offer a great deal.
I think the mistake is trying to target such a high cap rate. In general I am heavily in favor of lowering the rent to increase the quality of the tenant. Some times less rent = a higher return.
When dealing with multi family housing one bad tenant can ruin the experience for all the residents. Your cash flow can come to an immediate halt if one bad application slips through.
Take for instance Van Rooy. (just google Van Rooy Indy) They have built one of the premier real estate empires of Indianapolis from buy and hold multi family apartment buildings. They started buying apartment buildings here in downtown Indy in 1982. Back then downtown wasn't nice like it is now. They bought all kinds of prime real estate, probably for next to nothing. Mass ave, Lockerbie, Chatam arch, etc.. If you have seen there units they are very nice, they are very affordable and their maintenance is extremely timely and organized (I lived in one of there apartments back in 2002). They also have strict standards to move in. I think their over-all quality control has been the key to their success. Plus, I bet they were willing to settle for 5 - 6% cap rates.
Ok.. I'm rambling :)
@Ryan Mullin Thanks for explaining. I've been told several times that duplexes don't perform well here, but thought that would probably be different in areas like Fountain Square and Irvington, like you said. I saw you post on another thread up having a multifamily in Fountain Square and then converting it back to a SFH in about 5 years and selling it. Sounds like a great strategy. Very intriguing.
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welcome to BP @Coire Fox
I have grown to prefer duplexes myself. I'm working on two of them currently. If properly managed they can pay off nicely. In some instances the two tenants actually get along which can make for long term tenants.
@Coire Fox welcome to BP.
If you are ever looking for a partner feel free to contact me.
@Coire Fox ,as you can see, the community here is both well-versed and helpful. As others have already stated, I too believe that the best thing that you can do is get educated, and the resources on this site are second to none. I would also add that participating in the forums/blogs (i.e., both asking AND answering questions) is one of the keys to transforming information into actionable knowledge! You’ve taken the first step already by introducing yourself!