Getting connected with flips / rehabs in Indianapolis

5 Replies

I am and have been looking for that right, first flip.   I am looking in the Indianapolis area.  Primarily in Hendricks and Johnson county but really wherever the deal is.  Anyone who has properties they're selling, info, or advice for me in theseareas would be great.  I am in the market for single family, fix and flip.   Staying under 100k after all costs and expenses. 

     P.S.   Will be cash if that makes a difference.   

@Brent Wright What is your exit strategy and who do you see as your end buyer? Are you looking to do retail flips to owner occupant buyers, which I suspect you are since you're looking in Hendricks and Johnson Counties, or are you planning on selling to a buy and hold investor? If you're planning a retail flip, then you're going to have to go up the food chain more with higher priced homes. It's pretty tough to do a retail flip on a property under $100K. The numbers don't support it and there isn't a big buyer pool in that price range. Make sure you have a clearly defined business model and know what numbers you need to support it. "Staying under $100K" is not specific enough.

You can absolutely be all-in under 100k in Johnson County and make money.  I've done two in the last year (my first two) and both were under that amount.   The median home price is in the 130k range or so.  If you stick to the 70% rule, you're good.  It may be tight, but it's doable.  Make sure you have some reserves or line of credit to fall back on in case you have to hold it longer term.

To be specific, my first flip...bought for $21k in Greenwood.  Put $50k into it (way over budget...everything that could go wrong did).  Sold it for $90k and cleared about $6k after all holding and transaction costs.  Not great, but hey, I stopped talking about it and actually did one.

The second flip...bought it for $62k, put in $15k and sold it for $115k.  After seller assist, holding, and transaction costs, I cleared a bit over $25k.  This one was a no-brainer.

From what I can tell, getting a good deal is the tough part.  There are plenty of people looking for them and you're a small fish.  If a wholesaler lands a great deal, are they going to pass it to you or to a bigger operation that is reliable and will take every available deal.  Not a knock on you, because I'm in the same boat.  It's just reality.  If you want a deal with thick enough margin to flip, you'll likely have to go get it yourself.

@Mike D'Arrigo I'm not real sure what you mean by my "exit strategy". I plan on buying a single family home with an ARV that turns a profit. Yes I am planning on selling to owner occupants. It is hard of find that deal in my price range. I put an offer in yesterday for 51k on a house that just opened up to investors, in Plainfield. It was on the market for 15 days for 72k to owner occupants. I found out today they accepted a higher offer. My estimated ARV would have been 100k to 115k. I would have had 20k to 25k in rehab. I was estimating around 20k profit. Back to the MLS I go.

@Mike Knowles

That's awesome you have you 2 flips under your belt!  Can't wait to say I have actually done one.   I am being patient tho.   Great to know you have done two in my price range and in areas I am interested in.  Keep me updated on your future investments, if you would, and if you run across any deals you can't take on I'd like to check them out.   

Originally posted by @Brent Wright :

@Mike D'Arrigo I'm not real sure what you mean by my "exit strategy". I plan on buying a single family home with an ARV that turns a profit. Yes I am planning on selling to owner occupants. It is hard of find that deal in my price range. I put an offer in yesterday for 51k on a house that just opened up to investors, in Plainfield. It was on the market for 15 days for 72k to owner occupants. I found out today they accepted a higher offer. My estimated ARV would have been 100k to 115k. I would have had 20k to 25k in rehab. I was estimating around 20k profit. Back to the MLS I go.

It must have been a HUD home. Unless HUD listings need enough rehab that they can get bank financing, you're almost always going to lose out to owner occupants during the 15 day period. Look for more distressed properties that owner occupants can't buy.

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