First Rental Deal in Indianapolis – Looking for Feedback

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Hello everyone,

I’m 17 years old and looking to get started in real estate investing. My dad and I are partnering on our first potential rental property, with him providing the upfront capital while I focus on learning the business and analyzing deals.

We’re in the Indianapolis area and are currently looking at a 3-bedroom, 2-bath property on the west side of Indianapolis. It’s in a somewhat rougher area, which is one of the factors we’re trying to evaluate.

The property is listed at $130,000, but we’re hoping to negotiate it down to around $110,000–$115,000. The house currently has a tenant in place paying $1,200 per month.

We’ve been looking into DSCR financing, and at a purchase price of roughly $115,000, our estimated payment would be around $750 per month, including principal, interest, taxes, and insurance. Those numbers do not include maintenance, vacancy, capital expenditures, property management, or utilities.

The financing assumptions are based on a 30-year fixed-rate loan with 20% down. We also have reserve capital available if unexpected repairs or maintenance issues arise, although we’re obviously looking to minimize those expenses as much as possible.

For those with experience investing in Indianapolis, does this seem like a deal worth pursuing? What red flags or additional factors would you be looking at before moving forward?

I’m happy to answer any questions that would help provide a better picture of the situation. Any feedback or advice would be greatly appreciated.

Thank you.

[Jules Aton]

What class neighborhood? Being in a solid area  is my number one priority. There is money to be made in all classes depending on your tolerance but they can be like night and day to purchase, run and maintain.