Welcome Ryan! I'm just down south in Indianapolis. I'm planning to upgrade my primary residence and turn my current one into a rental in 2021. Are you a full time real estate professional?
I'm currently working on my first SFR. It's a total remodel. It was gutted when I bought it, but it was a hoarder house, so 6 30yd dumpsters later I'm finally starting to fix things.
Welcome Ryan! I'm just down south in Indianapolis. I'm planning to upgrade my primary residence and turn my current one into a rental in 2021. Are you a full time real estate professional?
We’re going through a similar process with a single family renovation, and we’re close to wrapping it up. First time Brrrr’ing a property and learning a ton along the way!
Hi Lindel, that’s awesome you’re getting in the game in 2021! It’s currently a side hustle, but much of our spare time is spent on real estate and family...What do you currently do?
How is the Lafeyette market? Indianapolis/Suburbs seem okay so far, but you can just tell in 8 to 10 years we'll be over inflated like Chicago - especially if we keep having Chicagoans move in. Lol!
@Peter Korty that's a lot of dumpsters! I can see how a hoarder house can make some good money, but the smell and the potential unseen damage just seems like such a huge risk.
I agree, especially if you are looking for those "run of the mill, family homes" with laminate counters, decent floors, standard white appliances. You know, your typical home to lease to a young family or empty nester family. There's a glut of homes with granite, 4 bedrooms, etcetera - what I consider high priced homes, great for that family that is growing and wants something with all the trimmings attached, but not what I am looking for.
Even worse is trying to find something that needs a lot of TLC and a seller who is reasonable. You can find one or the other down here it seems, but rarely both.
@Ryan O'Connor I'm an insurance broker and have clients that are real estate investors/landlords. I'm in the process of talking to financial advisor on how to roll over an old 401(k) into a self-directed IRA or solo 401(k), so I can invest in real estate and promissory notes in a retirement account. The Indy market makes me nervous though. It's a hot market, and I feel like most the properties I'd be interested in buying, renovating, and holding are already overpriced by the time they hit the market. So I don't know quite how I'll get started in real estate investing, but I'm going to find a deal and jump in 2021. lol
We’ve looked into self directed ira’s, and it’s an interesting strategy. There are quite a few limitations to it from what we’ve read, but it’s a great way to supercharge growth in retirement accounts if you do it the right way. We’ve gone from 0 to 5 doors since January 2020, which is more than we anticipated getting this year, but we took the “dive in” approach and bought two homes right out of the gate and haven’t looked back.
I'm currently looking to pick up my first fix & flip property in the Indy/Noblesville area. With this being my first deal, I've been running numbers to make sense of making offers that fit my goals.
How long should I allow for the first flip? 3-6 months? I will be hiring out all of the work.
@Lindel Smith, I believe you are correct that many of the properties in the Indianapolis area, especially the NE and E side suburbs are over priced. Except, that is where immigrants from Chicago seem to be moving into, so they're selling a 3 bedroom 2 bathroom for $300,000 and buying one for $200,000 (what 7 years ago would have been $130,000 when I moved from IL to IN). So I, and this is PURE opinion!, feel that prices may go up to about $300,000 before they plateau. The problem is, we (as in me at least) are looking for something under $200,000 we can fix up and lease for a reasonable sum.
Those deals are far and between it feels. Granted I am stuck with the MLS (Homesnap is great, double check through Trulia/Zillow to find listings, but Homesnap seems to be really good at updating and keeping up to date) which means most of the good deals are already gone.
Yet there are still some good ones. I like Warren Township. Strong Class-C homes in a blue collar neighborhood. There's children playing in the streets, there's original owners from the 1950s, the trees are fully developed. If you can get an unflipped house, you can put a lot of sweat equity in to boost your appraisal and lease for a decent amount.
Other areas that I have had recommended to me include Perry Towship, Center Township, Washington Township, and Franklin Township.
@Corey Ogle, Noblesville is great. I live in Noblesville and my first rental is there. Just keep in mind it is growing, which means the builders are throwing up new houses left and right which is going to give you a lot of competition. Also, I think it's getting to the over priced - that's just my opinion. That said, I've had three neighbors in my subdivision alone list their homes for sale last year and all three sold in less than a day - the house across the street from me sold in four hours! So there's definitely demand.
Parking in "old Noblesville" is insane. So you may want to make sure whatever unit you look at includes a garage if you are looking closer to town center. That said, it's beautiful. There's golf courses, walking paths, a giant lake (Morse reservoir), you can see people rafting and canoeing down the White River all summer. The high school is virtually brand new.
The time it takes from start to finish will vary greatly depending on how much work the property needs, how much of a priority your project is with contractors, how your buyer is financing the deal, etc. We are wrapping up a rehab in the next week or so, and it was a full gut, and we’re going to have almost 5 months in it after the refi.
Hi BP, my wife and I are local investors in the Lafayette, IN and looking to connect with others in the area. I look forward to hearing from you!
Ryan
Columbus is an awesome market! I am born and raised, and know the local market like the back of my hand! Over the past 5 years I have seen industry & population growth in Columbus explode, and effectively it has raised our housing prices.
I started investing in Columbus OH about 3 years ago, with an FHA loan. I bought a duplex, fixed it up enough to rent and eventually complete a BRRRR.
I am in the Greater Lafayette area and Congratulations on diving right into REI! Wow 0-5 doors in 2020 is awesome. My wife and I are looking to jump into it this year and your success gives me more hope. We currently have 1 SFH, but we want to expand over the next few years.
@Ryan O'Connor how you doing Ryan , im from the Frankfort area , I'm really new to the real estate world , but really motivated to get In to the buy and hold property's, from your experience where do you see to get the most return on you money SFH or small-multi ? And it's there an specific zip code/are in Lafayette that you recommend, I'm kinda in the process on putting a mail campaign together. Thank you in advanced!
@Alexis Ayala, I don't think it really matters as far as SFR vs small multi as long as it's a good deal. A good deal is a good deal no matter how it's sliced. You just have to get the REI machine started turning. Focus more on whichever type of property is best suited to you. If you're needing a place to live too, then maybe house hacking a small multi-family is the best route. If not, then maybe a SFR is the better way to go.
Since you're in Frankfort, IMHO, I wouldn't bother with the Lafayette market until you've done at least one deal in the Frankfort market. I look at the Clinton County market a lot and there are some pretty decent deals on the MLS even.
@Peter Korty the reason I was saying the what makes more sense between a SFH or multi , its cus in some market you get better return in SFH then multi or vice Versa like for instance in Frankfort makes more sense the SFH cus you can get atleast 250 to 300 cashflow versus douplex or tri it's hard to make them work. But thanks for you advice ! Looking forward to connect
Just put a property under contract in your neck of the woods. Great bones and just needs a remodel. Should be closing on it within a few weeks and the work begins!
Awesome! I'm going to take a look at an FSBO next week. Looks like it needs some structural repairs or foundation repairs, so we'll see if they are willing to come down on the price.
My goal is to push Mulberry into one of the top 10 places to live in Indiana. Ambitious right?
Hi Alexis, you can do well in either sfh or multi family. Like Peter said, there are good deals out there for all of the above...just may have to look beyond the mls to find them. You are going to be able to scale more quickly with multi family in most cases, but generally you’re going to need more capital to get into multi family vs single family. I recommend you find a 2-3 unit property and house hack it. Great way to get some solid cash flow out of the gate, live for free, and it will be an awesome learning experience to help you prepare for future projects! Good luck!