Out of state investor needs advice

Indianapolis, Indiana
General Real Estate Investing
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Out of state investor needs advice

Brett WilsonPro Member
Member since 2025 · 3 posts · 5 votes

Hello,

I'm a Santa Barbara base investor looking to purchase one to three homes in the Indianapolis area in the next three-six months. Here are my expectations under $100,000 purchase price with $12-$15,000 in rehab cost and to have an ARV of plus $200k. I would like to refi within 90 days pull out the equity and do it again. I'm just wondering if this is a realistic approach in the Indianapolis area. Additionally, I found a few all in one property management companies that could do everything from finding the property to managing the rehab hiring contractors, etc. I'm wondering if this is something worth exploring or if I should manage the project myself. However, living in California will be unable to spend 40 to 60 days to manage a project start to finish. Is it worth the extra couple thousand dollars per year per house to have the all in one concierge service? I can fly out for a week at the beginning and the end of the project but obviously that's not ideal if I'm managing the project myself. So I guess my question is worth it to have one of these companies manager project from start to finish with me flying out to shake hands and see the properties and then come in once or twice during the project to make sure things are running smoothly? And is it reasonable to expect a refi within 90 days of purchase? Should I use the contacts at one of these companies for their private lending or should I find my own? I appreciate it.

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Nick GiulioniPro Member
Rental Property Investor · Carmel, IN · Member since 2016 · 1k+ posts · 615 votes
11mo

@Brett Wilson I’ve been investing in Indianapolis since 2017 and have completed a few hundred projects here at this point. I want to be straightforward because the numbers you’re targeting just aren’t realistic in this market today. There’s no scenario where you put $12–15k into a property and reliably create $100k of value on the back end. The kind of arbitrage you’re describing hasn’t existed here for years.

That said, there are solid opportunities in Indy if you underwrite deals with today's pricing, rehab costs, and ARV expectations. I've been a long-distance investor myself for most of my portfolio, and more recently I run a construction company here locally, so if you ever want to sanity-check deals, get clarity on neighborhoods, rehab budgeting, contractor expectations, or anything else, feel free to reach out. Happy to help however I can as you get your footing in this market.

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  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    11mo

    I think finding deals with that numbers won't happen. 12-15K rehab is very rare, most cosmetic rehabs will be 25/30K depending on the size, if you are purchasing a fixer upper at 100K with a 200K rehab I would guess the rehab would actually be 40-60K. 

    The other thing to look at is the areas. From being afar you want to be careful what areas you are looking in. Being out of state it's easy to buy in a bad area. 

    On the all in one aspect it can be nice, there is PMs that have inhouse crews. As hiring any GCs vet them, see if they have previous jobs/clients. Also get an itemized bid for whatever project they do. Be careful on paying a larger sum upfront for a rehab. 

    1Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    11mo

    @Brett Wilson you're about 3 years too late to do that!

    Trying to basically acquire properties at 50% of their value?

    GUARANTEE you can find them - but you'll get screwed by scammers!
    They'll be Class D properties dressed up to look Class C or B.
    They won't actually cashflow and you'll eventually have to sell at a loss or let them go to mortgage foreclosure.

    Acquiring all-in for 75%-80% is more realistic. 
    Once you build your local network, you'll occassionally stumble onto better deals.

    REHABS
    This is where many OOS investors also get scammed. 
    Either over-charged or crappy quality - or both.

    Recommend setting up appointments with multiple PMCs and contractors and flying out to meet in person. Be sure to do this on a Friday - who wants to work Saturdays to meet you?A great PMC will map out a tour for you where you can visit neighborhoods to get an idea of where to buy and where NOT to buy. They may even spend a couple of hours with you on a Saturday (but NOT Sunday) to tour a few properties - preferrably one or two undergoing a decent amount of RentReady repairs or rehab.

    Make it clear to anyone you hire that you expect VIDEO updates of rehab progress! Hopefully, you can even do live Zooms. If YOU know what you're looking for, you can avoid poor quality work and over-charging.

    You are really taking a HUGE risk by starting out this way. 
    Guessing you really don't know enough to protect yourself, so you're gambling with whomever you hire. You're not even fully aware of what you don't know:(

    Do NOT trust anyone, ask a TON of questions and try to VERIFY everything you can!

    You'll also be better off if you can at least to a flip locally, to learn from, before going OOS.

    [email protected]248-209-6824
    Logical Property Management4.9469 Reviews
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    3Reply
    • Brett WilsonPro Member
      OP
      Member since 2025 · 3 posts · 5 votes
      10mo
      Quote from @Drew Sygit:

      @Brett Wilson you're about 3 years too late to do that!

      Trying to basically acquire properties at 50% of their value?

      GUARANTEE you can find them - but you'll get screwed by scammers!
      They'll be Class D properties dressed up to look Class C or B.
      They won't actually cashflow and you'll eventually have to sell at a loss or let them go to mortgage foreclosure.

      Acquiring all-in for 75%-80% is more realistic. 
      Once you build your local network, you'll occassionally stumble onto better deals.

      REHABS
      This is where many OOS investors also get scammed. 
      Either over-charged or crappy quality - or both.

      Recommend setting up appointments with multiple PMCs and contractors and flying out to meet in person. Be sure to do this on a Friday - who wants to work Saturdays to meet you?A great PMC will map out a tour for you where you can visit neighborhoods to get an idea of where to buy and where NOT to buy. They may even spend a couple of hours with you on a Saturday (but NOT Sunday) to tour a few properties - preferrably one or two undergoing a decent amount of RentReady repairs or rehab.

      Make it clear to anyone you hire that you expect VIDEO updates of rehab progress! Hopefully, you can even do live Zooms. If YOU know what you're looking for, you can avoid poor quality work and over-charging.

      You are really taking a HUGE risk by starting out this way. 
      Guessing you really don't know enough to protect yourself, so you're gambling with whomever you hire. You're not even fully aware of what you don't know:(

      Do NOT trust anyone, ask a TON of questions and try to VERIFY everything you can!

      You'll also be better off if you can at least to a flip locally, to learn from, before going OOS.

      Thank you for the honest reply, really I do appreciate it. I am taking a risk by going out of state but thankfully I am self-employed and I’m able to travel relatively easily. I can be out within a day or so if you any sort of “crisis “happens and I have the time during the week to dedicate multiple projects of necessary. I’ll be out in Indianapolis in the next two weeks to meet with multiple people to tour in the city with a mutual friend. Thank you for the advice again I appreciate it. 

      0Reply
  • Josh C.Pro Member
    Property Manager · Indianapolis, IN · Member since 2010 · 1k+ posts · 1k+ votes
    11mo

    You only want 40% equity and get your money back in 90 days and keep a cash flowing asset?

    There are 100s if not thousands of ACTIVE investors in Indianapolis. If these deals existed easily we would take them all. Your expectations are unfortunately pretty unrealistic.

    I started buying in Indianapolis in 2014 and those deals weren’t not easy to find as a local full time investor and property manager then.

    Investing is great, but you need reasonable expectations or you will be very disappointed. If you are getting into something all in for 90% of value are will be doing great. Personally I think that will take you self managing the rehab. If you hire another layer of management they are going to take their additional 10-15% for their time and expertise (although on a 10-15k rehab that isn’t much and probably worth it)

    We have clients do BRRRs often, but not in 90 days and they still have a few dollars let in the deal when said and done. I know that last one I did personally I had to leave money in.

    Good luck!

    3Reply
  • Nick GiulioniPro Member
    Rental Property Investor · Carmel, IN · Member since 2016 · 1k+ posts · 615 votes
    11mo

    @Brett Wilson I’ve been investing in Indianapolis since 2017 and have completed a few hundred projects here at this point. I want to be straightforward because the numbers you’re targeting just aren’t realistic in this market today. There’s no scenario where you put $12–15k into a property and reliably create $100k of value on the back end. The kind of arbitrage you’re describing hasn’t existed here for years.

    That said, there are solid opportunities in Indy if you underwrite deals with today's pricing, rehab costs, and ARV expectations. I've been a long-distance investor myself for most of my portfolio, and more recently I run a construction company here locally, so if you ever want to sanity-check deals, get clarity on neighborhoods, rehab budgeting, contractor expectations, or anything else, feel free to reach out. Happy to help however I can as you get your footing in this market.

    5Reply
  • Arman AhmedPro Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 968 votes
    11mo

    @Brett Wilson

    Brett, your strategy is doable in Indy, but the numbers are tight since sub 100k purchase with a 12 to 15k rehab rarely jumps to a 200k plus ARV unless you are in very specific pockets, and a 90 day refi is possible but many lenders now prefer closer to six months, so plan for flexibility. The all in one PM rehab companies can work for out of state investors since they save you time and headaches, but they usually come with higher rehab costs and less control, so just make sure you vet them and review scopes closely. Many investors do a hybrid approach by flying in at the start and end while letting a vetted local team manage the day to day. What areas of Indy have you been looking at so far?

    [email protected]614-418-6081
    0Reply
  • Kerlous TadresBusiness Member
    Realtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
    11mo

    Hey @Brett Wilson, the BRRRR model itself is solid, but those numbers usually only work when you're getting a true value-add deal, not just a light cosmetic rehab. Since you're remote, I'd lean toward the full-service option for the first project just to protect the timeline and your sanity. Also, talk to lenders now because not all will refi in 90 days. I'd start with one property, build confidence in the team, then scale from there.

    [email protected]614-490-1163
    Kerlous Tadres | Reafco Real Estate542 Reviews
    WebsiteView Page
    1Reply
  • Steve K.
    Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
    11mo

    Here is a more realistic way that this will play out: $100k purchase price, needs $50k to catch up on deferred maintenance, still worth $100k afterward. Cheap properties are cheap because they are in bad locations. 

    3Reply
  • Marcus Auerbach
    Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    11mo

    I don't think Brett is comming back.

    1Reply
    • Steve K.
      Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
      10mo
      Quote from @Marcus Auerbach:

      I don't think Brett is comming back.


       He took his time machine back to 2013.  

      0Reply
  • Brett WilsonPro Member
    OP
    Member since 2025 · 3 posts · 5 votes
    10mo

    Wow, I'd be lying if I said I was unimpressed with the responses. I was honestly expecting maybe one reply, not all this!! So, thank you all of you for your responses and advice…even the jabs, lol. Clearly I'm new to the Indiana market, and real estate investment in general. That being said, I've read just about everything I can get my hands on in regards to BRRRR and fix and flip and I'd like to start moving forward with intent. The example of my expectations is by no means set in stone, as I have liquid funds available to move beyond what was mentioned. I'm prepared to spend much more than that, as long as my long term goals are met. I realize there will be ins and outs and ups and downs along the way, I've started and run several businesses from scratch and understand the ways of the real world. I will 100% be responding to several of you directly and again, thank you for all of the info, it's exactly what I was looking for.

    Brett 

    0Reply
    • Nick GiulioniPro Member
      Rental Property Investor · Carmel, IN · Member since 2016 · 1k+ posts · 615 votes
      10mo
      Quote from @Brett Wilson:

      Wow, I'd be lying if I said I was unimpressed with the responses. I was honestly expecting maybe one reply, not all this!! So, thank you all of you for your responses and advice…even the jabs, lol. Clearly I'm new to the Indiana market, and real estate investment in general. That being said, I've read just about everything I can get my hands on in regards to BRRRR and fix and flip and I'd like to start moving forward with intent. The example of my expectations is by no means set in stone, as I have liquid funds available to move beyond what was mentioned. I'm prepared to spend much more than that, as long as my long term goals are met. I realize there will be ins and outs and ups and downs along the way, I've started and run several businesses from scratch and understand the ways of the real world. I will 100% be responding to several of you directly and again, thank you for all of the info, it's exactly what I was looking for.

      Brett 

      Brother - no jabs here. If you need any help, don’t hesitate to reach out! 
      0Reply
  • Alfath AhmedBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
    10mo
    Quote from @Brett Wilson:

    Hello,

    I'm a Santa Barbara base investor looking to purchase one to three homes in the Indianapolis area in the next three-six months. Here are my expectations under $100,000 purchase price with $12-$15,000 in rehab cost and to have an ARV of plus $200k. I would like to refi within 90 days pull out the equity and do it again. I'm just wondering if this is a realistic approach in the Indianapolis area. Additionally, I found a few all in one property management companies that could do everything from finding the property to managing the rehab hiring contractors, etc. I'm wondering if this is something worth exploring or if I should manage the project myself. However, living in California will be unable to spend 40 to 60 days to manage a project start to finish. Is it worth the extra couple thousand dollars per year per house to have the all in one concierge service? I can fly out for a week at the beginning and the end of the project but obviously that's not ideal if I'm managing the project myself. So I guess my question is worth it to have one of these companies manager project from start to finish with me flying out to shake hands and see the properties and then come in once or twice during the project to make sure things are running smoothly? And is it reasonable to expect a refi within 90 days of purchase? Should I use the contacts at one of these companies for their private lending or should I find my own? I appreciate it.


    Those numbers aren't realistic for any market. But I would look in columbus. You are better off doing brrrr deals there. You can buy singles in decent locations for $100k to $120k and do about $30k to $40k in renovations. ARV will be about $230k.

    Let me know, i can share my investor package and calculator i built. 

    [email protected]614-802-5698
    ReafCo | Ahmed Group 533 Reviews
    WebsiteView Page
    0Reply
  • Travis TimmonsPro Member
    Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
    10mo

    We have all had a head full of ideas starting out at one point. What you are trying to do is really hard and pretty risky. You are just stacking too many risk factors on top of one another - first time investor, out of state, heavy rehab, low quality asset/location ($100k house), older home, and working with contractors as the rich guy from CA that they can screw over. It's just a bad idea on a risk adjusted basis. 

    I've invested locally and out of state. The key to my success out of state is focusing on quality. If you can rent to a tenant with a 700+ credit score, management is pretty easy. Same goes for our short term rentals - if you're average nightly rate is $400+, you price out a lot of the nonsense and management issues. Think about who you want to rent your property and reverse engineer it from there. You also get real rent and price appreciation in high quality locations.

    2Reply
  • Frank PyleBusiness Member
    Specialist · USA · Member since 2024 · 280 posts · 130 votes
    10mo

    Hey Brett, great questions and you’re thinking about this the right way, especially being out of state.

    Short version: the strategy can work here, but the exact numbers you mentioned are pretty aggressive in most Indy submarkets. On a sub-$100K buy with $12–15K in rehab, a $200K+ ARV would usually require a big value-add (bed/bath changes, major layout upgrades, etc.). More common is purchase + rehab landing somewhere around ~70–80% of ARV if the deal is tight.

    On the refi side, 90 days can be done in certain cases (cash purchases with delayed financing or specific lenders), but many DSCR/long-term rental lenders prefer 3–6 months of seasoning. The right structure will depend on whether you're buying in cash or with leverage, and how aggressive you want to be on appraised value and LTV.

    As for the all-in-one “concierge” PM companies: for out-of-state investors who can’t be here 40–60 days, paying a bit more for a solid boots-on-the-ground team is often worth it if

    • they have proven contractor/PM relationships,

    • they’re transparent on scope, bids, and timelines, and

    • someone on the team actually understands investor math (rents, ARV, DSCR, etc.).

    I'm local to Indy and work with out-of-state investors on this exact model (deal vetting, financing structure, rehab oversight, and PM handoff). If you'd like, I'm happy to sanity-check a couple of addresses you're looking at and walk through realistic ARV/refi options for your situation.

    [email protected]317-501-3467
    Frank Pyle at ExP Realty
    WebsiteView Page
    NEXA Lending- Investors Edge Concierge
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    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    1d

    Hey Brett,

    You can refi with no seasoning required on a long-term DSCR loan as long as you completed renovations. I would suggest working with a broker that can help you with both the purchase loan and refi. It will streamline your process tremendously.

    [email protected]818-269-7983
    LuxePrivate Investments LLC 570 Reviews
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    0Reply
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