Residential Real Estate Broker · Evansville, IN · Member since 2016 · 34 posts · 16 votes
5y
Welcome to this wonderful (and sometimes strange) world of investing in real estate. The best way to answer this question is to see where you yourself would feel comfortable around the city. Getting familiar with the city is step one so that requires driving, biking, running/walking <— (the best way to feel the neighborhoods). Ask about everyone you come in contact with what part of the city would they suggest to live and decide if they’re your end buyer (or renter). In general a lot of demand lies in Newburgh and Northside EVV though it is very hard to find anything that cash flows (and it doesn’t help that we currently only have 30 days of inventory in EVV, which means if no houses new came on the market we will be sold out of houses in 30 days, and only 15 days in Newburgh. We are currently at an all time low in inventory in our area, not in similar to basically every other market around the country currently. We only have about 200 houses on the market (and shrinking by 10-15/day and new inventory hitting the market is about 3-5 per day hitting the market). For comparison here 5 years ago we had 3-4 months worth of inventory and 800-900 homes on the market at any given time. So with this at this moment in time the area inventory might not even exist so it might need to be created.
Getting very clear on your strategy will help a lot in your decision, inside of your strategy make sure you keep in mind your end goal, is your end goal cash flow or is your end goal paychecks from flipping?
Buy and hold long-term is a buying cash flow decision and flipping is buying a job decision.
Sometimes you may need one to Fund the other and in that case you just have to work through your plan of what your end goal is on cash flow or flipping and then work backwards from there to determine your starting point. Begin with the end in mind always.
When you say class a or B rentals, what does that mean to you? In terms of age of construction, amenities, price to purchase, price to rent?
Investor · Evansville, IN · Member since 2021 · 7 posts · 0 votes
5y
Casey,
First of all, THANK YOU! This information is very helpful!
I agree, I need to be more precise on my strategy. I have a meeting with a lender coming up that I intent to help guide my strategy moving forward. If they say I need more equity/cash to put down before purchasing a long term buy and hold, I will move into a flipping strategy to acquire this down payment. If they clear me to purchase a class A/B property, then I will go forward with a long term buy and hold.
I consider Class A/B to be nicer neighborhoods that are close to good schools, parks, restaurants, ext... I know a lot of investors buy properties in downtown EVV for cheap, but often times to me they are not in well desired neighborhoods and the quality of renter that will live there reflects that. I have my eye on Newburgh specifically.