Hi Gurus, I am about to acquire a SFH 3/1.5 1250 sq in New Castle IN from a turnkey. Price is 130k, and it was just leased for a year at $1175. Schools around 5-8 and not too far from the freeway. I will do 25% down with 30 year fixed. I know this area likely won't appreciate much, but the place has a new roof, furnace, HVAC and water heater as well as nicely updated kitchen and bathrooms and almost all new windows. I will probably cashflow around $200 a month or maybe even more considering I have most of big ticket items are new. Is this a worthwhile investment?
Hey @Roman S. ,
I suggest running your numbers in the calculators on BP, dealcheck.io, and/or your own customized spreadsheets. You should also research the general economy and consider the employers in the area (a variety of employers is good). After that, factor in the neighborhood (can you get current photos/video of the area) and take a look at crime stats (is there an abnormal rate of crime relative to other areas, etc).
If all the above checks out, then why not? I will say your RV ratio is a bit low though, and I'm targeting > 1% for future acquisitions, but if this is your first, then getting your feet wet isn't bad.
Thanks for your thoughts @Jonathan James Look , its actually my 2nd. There are some big employers in the area and also closer to Indianapolis, this place is about 45 mins from Indianapolis, no crime in this area. I know the numbers are not quite 1%, but I was thinking that all of the big ticket updates would make up for it in the long run. I guess I just wanted to hear from a third party :). Thanks again.
Hey @Roman S. Lets connect. Cashflow is the key, espcially when you can get more of it!!
@Roman S. I never thought I would consider New Castle IN, but I started to like it. Also looks like it's growing. I actually have a 30 Units Complex under contract at the moment in new castle. People there are super nice and like you said no crime what so ever. Here is my market research. However I think you might be paying too much for a house that cash-flows $200-$300. Right next to the 30 units there are SNFs & duplexes. If you want I can talk with the owners in the area when I go back for closing. I meet some of the locals and they are retiring, you might be able to buy them for $70K per door. Also since you already have investment there you can tell me more about the area. All the best. let me know if I can be of any help
@Keivan Darius Hello sir. New to the world of real estate. I did for search if towns local to me and found this thread. Just curious if you still have the 30 unit complex? And if so which one is it? Thanks!