Trip to Indianapolis: Find Realtor and Prop Mang Company

[Denise M. Tschida]

I am visiting from Southern California till Friday, March 30 to begin building my team. In reading "Long Distance Real Estate Investing" and "The Richest Man in Babylon", I have learned that I do not need to try to become the expert in everything but rather hire the experts to help me. I am looking to connect with realtors and management companies here in Indianapolis and its surrounding areas.

I have 3 properties in Southern CA purchased in 2011. Their combined debt service is 370K and appreciation of 450K. I want to 1031 exchange them to the Mid-West for SF rentals to increase my passive income. The first area I am looking into is Indianapolis. I have spent the last 6 months listening to podcasts, reading books, and reading Biggerpockets forums to come up with my initial business plan.

Yes I am nervous in investing out of state. I actually purchased 2 turnkey properties out of state where I lost my shorts… 100K. It did not stop me. As Brandon and Josh would say, I paid for some education. What I learned was I need to trust the numbers. The math will let me know if its fits what I am trying to accomplish. I proceeded to buy in my backyard where I felt more confident and was able to practice trusting my math.

My first goal is in 8 years to have $5000/month passive income after all expenses, including saving for Cap Ex, Vac Rate, and Maintenance. My initial plan is to purchase:

• ~100K
• ~ 800 ft2 ≤ 1500 ft2
• Finance-able
• Probably 50% debt service / 50% cash (in order to do my 1031 exchanges)
• Sellable to homeowners when I 1031 the property again
• Area has Low Vacancy Rate
• Fully or Near Fully Rehabbed
  • Willing to put some initial funds for rehab
  • Want long term no-nonsense
• Maybe 1970 and newer
• Emerging Market, some potential appreciation
• ARV ≤ Market Value
• Numbers allow payoff in 8 years

I am open to here back about my plan.

[Ryan Moeller]

Hi Denise, you initial plan to purchase seems doable.  1970 may limit your options as many of the properties were built earlier.  The hedge funds almost always require 1950 and newer and they all seem to be starving for inventory.  A lot of the emerging/improving areas are in and around downtown and have older homes.  Once you go out towards the 465 loop and into township schools you start getting the 1950 and newer homes, a lot of ranch homes.  I have a list of solid B class areas and a neighborhood map that I can share via email.  I hope it is helpful.