$450/$495 Occupied Multi-Family Duplex Indianapolis for $95k ?

3 Replies

What do you investors think about this deal in Indianapolis? 

Duplex 1 bed 1 bath with both sides currently rented $450/$497 4009-4011 Clarendon Road Indianapolis Indiana 46208

Minutes away from Butler University on a quiet street. 

Built 1939 , Unfinished basement, Detached non-working garage, Parking in the front

Appliances included

Tenant 1: 8/2017 Tenant 2: 2015-2016

2018 numbers
Rent 4009 $5,964 4011 $5,400
Management fees $1,136.4 (10%)
Property Tax $1530.08
Lawn Care $300
Property insurance $710
Repairs $175
$5964+$5400= $11364 - expenses = Net $7,512.52

The question is what is your criteria for an investment property? 

Do you want to invest in 1/1 homes in that area? Do you understand the renters in that area, opportunity to increase rents converting the basement into another unit, and demand for this type of property? 

Regardless of the past financials provided, what are your percentages you appropriate for these expenses? Over time, the amount you spend each year will change, so it is best to overestimate in order to have a savings cushion when big ticket repairs occur.  For example, more conservative investors would estimate 40% gross rent for expenses excluding the mortgage and this could change the purchase price greatly.

@Chuck L. With those level of rents I’d pay about 30k for that duplex. What type of area is that? Low income duplexes from out of state seems like a great way to lose your shirt

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