Address: Indianapolis, IN, 46201
Neighborhood sounds like a C (based off agent's opinion)
Asking price $59,900 (Seller Finance is an option – 5 years to pay off, considering 10% down payment)
Annual Taxes $1656
Unit 1: 2/1 rents for $450 (Pays on time – like clockwork – same day/same time) Tenants for 2 years
Unit 2: 2/1 rents for $500 (larger unit than unit 1) VACANT since Aug.
Unit 3: 1/1 rents for $400 (Pays on time – like clockwork – same day/same time) Tenants for 2 years
Tenants pay all utilities and are currently month-to-month
Rent-o-meter comps are over $600/month for a 2/1.
Cosmetic repairs needed. Seller is fixing up the vacant unit
House built in 1911
Not enough information. In my opinion I would stay away from anything below a B neighborhood when investing out of area. First of all there will be more vacancies and issues. Second, you may not even find a PM willing to work those areas for such a small $$.
I would rather by a SFH in a B area personally
Best of luck!!
thanks! What additional information do you need?
At asking price, the rent to value is good but as @Justin R. mentioned, if you're investing out of state, it may be best to buy in a B neighborhood because you may have problems with vandalism or alot of vacancies in a C or D neighborhood. I know the low purchase price is tempting but there's a reason why it's low. If you do proceed with this deal, do alot of due diligence and I would go for the seller finance deal with the low down and see how you like it.
2/1 rents asking for $500, rent-o-meter comps are over $600. BUT VACANT since Aug, what else do you need to know?
46201 is a hit and miss zip code. How close to Emerson St is it?
The cash flow is obviously good but there are two things to worry about.
1) at that rent range you may have a headache with not so good renters. They will be very hit and miss especially since you are in another state (there are a LOT of evictions in that zip code I can tell you from personal experience).
2) what is the ARV on this one? A lot of houses in 46201 have < 50k ARVs unless you are pretty close to Emerson (thus I asked above).
I would only buy this one if it was within 2 blocks of Emerson or if the ARV was at least 80k.
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