Indianapolis Keep, Flip or Wholesale

6 Replies

I am new to this and would appreciate advice from those who have experience. Earlier this year, purchased a home with great bones actually in the neighborhood where the show Good Bones flips a lot of their homes, Fountain Sqaure in Indianpolis. The home is currently a 2/1 and have about $145k in it after cleaning it out, replacing the roof/soffits/gutters. The home next door is a 2/2 and sold for $307k earlier this year. It is almost the exact same floorplan, but they converted their attic. I have great plans to convert the attic to make mine a 4/2. I was hoping to have the construction underway by now, but my contractor ghosted me. While I was looking for another contractor, I was sent another great investment opportunity and used most of my renovation money on it. I should be able to save up enough to start renovations in January. I'm trying to figure out if I should fix & flip, fix and rent or just wholesale it and move on to other opportunities that interest me more. I think the renovation will be $80-100k and it should rent for $2400-2600. Pro and con list below (as I see it).

Flip Pros: Major market home shortage - would sell instantly, Should be able to make a good profit, Fairly quick money

Flip Cons: I hate dealing with contractors, a few months of construction, not a long term wealth strategy, I hate dealing with contractors

Fix and Rent Pros: Equity, long term wealth, good rental market, one of few 4 beds in the area, great hipster neighborhood

Fix and Rent Cons: I hate dealing with contractors, I've never been a landlord and am nervous about it, it's not convenient to where I live.

Wholesale Pros: Quick Money, Cash to invest in other opportunities that I love and have mastered, I don't have to deal with contractors, I can just be done and move on.

Wholesale Cons: I love the house (oops), I love it's potential, I need to learn to landlord at some point, inexperience with wholesaling

@Christy Brinkruff - your post is a tad confusing to me. Are you asking whether you should flip the Fountain Square property or the new deal? Assuming you're talking Fountain, my recommendation is that you sell it (flip) and move on. Why?

1. Having cash on hand is critical so even if you had a good contractor, you don't want to be in the middle of two renovations unless you have tons of reserves. Better to sell and go on to the next project.

2. I drove around the area about 7 weeks ago and yeah, Fountain is definitely hip. But so what? It's just that....hip, but if I was moving to Naptown, that wouldn't be on my radar of places to live. You're an investor, there will be other opportunities - and possibly even in the same area. Plus there are several hip areas, not just Fountain.

Flip it, be in even more solid standing, get your contractor situation sorted and you'll be ready for some holds. Good luck!

@Christy Brinkruff I just started investing in Indy earlier this year. I would say time is money and there are so many variables that go into a successful flip. It sounds like you are experiencing some of those things and if you get a little money now to exit this project and move onto the next, that might be your best option. Yes there are advantages to flipping or keeping as a rental but sounds like that's no guarantee on this one. There is always another great deal just around the corner. 

Thanks for the advice everyone. I honestly have been very disappointed in myself that I haven't moved forward on this property yet. But, I listened to the Real Estate Rookie Podcast today with Tony J Robinson (E 37), and he is in the exact same situation as I am. I pivoted and started buying short term rentals in Pigeon Forge. This home in Indy fell to the bottom of the list because things were going so well in PF (too many bridges??). Anyway, I appreciated his insight that he was getting rid of his flips after finding the same STR opportunity and I appreciate all of the advice here. Leaning towards wholesaling and continuing to scale in Pigeon Forge.