New investor from Los Angeles, CA but looking at Indianapolis

New Member Introductions
10yFollow

New investor from Los Angeles, CA but looking at Indianapolis

Dave Labowitz
Los Angeles, CA · Member since 2016 · 4 posts · 4 votes

Hello everyone! I've already met some great people through the meetup in Santa Monica but this is my first post on the forum. I have investments as a LP in three mobile home parks, 2 in AZ and 1 in CA, but have not done anything "on my own" yet. I'm looking to build a portfolio to create passive income through buy and hold investing. I'm open to fix and flip, as well, but only as a tool to create more money to keep growing my buy and hold portfolio.

I've heard good things about Indianapolis so I'm working on learning about the market (although I'm open to other suggestions, so long as it's a market where I can get 12%+ returns). I'm looking to do SFH or MFH residential to start, but would be interested in partnering with other investors to purchase larger, commercial apartment complexes.

For now, though, I have a ton to learn and lots of people to meet! Specifically, I'm looking to:

  1. Learn about the best places and types of investments (I've heard mixed views on MFH residential) to buy in the Indianapolis market
  2. Build relationships with wholesalers in that market
  3. Build relationships with portfolio lenders. I can pay cash for my first several properties but will want to re-fi back out as quickly as possible to continue building my portfolio
  4. Learn about rehabbing; I'll be completely new to it and have a lot to learn
  5. Build relationships with potential partners for larger deals
  6. Find strong vendors in Indianapolis (contractors, property managers, someone to photograph properties, etc.)
  7. Make like-minded friends!

Outside of real estate, I have spent the last 10 years as an executive in startup technology companies and am currently working on launching an executive coaching practice. I have an MBA from Pepperdine University and prior experience as a software and database developer. In fact, I used to teach VBA and am just finishing up a VBA-powered Excel spreadsheet to model a buy and hold multi-property portfolio. I'm happy to share it and would love your feedback. If you're interested, please let me know and I'll send it to you.

Thanks, everyone! I look forward to being a part of this community.

-Dave

4Reply
54 views

Investor-friendly agents in Los Angeles, CA

See the agents BiggerPockets members work with in Los Angeles, CA.

Most Popular Reply

Account Closed
Indianapolis, IN · Member since 2013 · 210 posts · 149 votes
10y

@Joe Ellis

You asked a question about what was Indianapolis's biggest revenue producer? I answered, Anthem. I didn't answer your second question, because I do not have the time right now. 

Here is some links that will answer your questions that you have. The information is from the Indianapolis Chamber of Commerce and other sources. 

http://www.city-data.com/us-cities/The-Midwest/Ind...

http://population2016.com/population-of-indianapol...

http://www.msn.com/en-us/money/companies/the-large...

Feel free to call me if you have any other questions. I will be in the field looking at properties. 

2Reply
See this reply in the discussion

25 Replies

Jump to latestLatest
  • Walter Shatford
    Investor · Monterey Park, CA · Member since 2016 · 24 posts · 2 votes
    10y

    I have deals that I am looking for a partner for in Ohio and Michigan.  The down payments would total 20k or less between us.

    0Reply
  • Dave Labowitz
    OP
    Los Angeles, CA · Member since 2016 · 4 posts · 4 votes
    10y

    @Walter Shatford, can you tell me more about the deals? What towns are they in? What is the appeal about those markets for you? Thanks!

    0Reply
  • Walter Shatford
    Investor · Monterey Park, CA · Member since 2016 · 24 posts · 2 votes
    10y

    1. the appeal is the Cash on Cash return (cash flow).  Putting 20-25% down, deals can be structured that give a 100% cash on cash return.  AKA: the down payment would be repaid in 1 year.

    2. the necessary capital is much lower.  

    0Reply
  • Dave Labowitz
    OP
    Los Angeles, CA · Member since 2016 · 4 posts · 4 votes
    10y

    Gotcha. Have you partnered with someone on a buy and hold before? How do you structure the deal? LLC with a managing member? Please send me more details so I can analyze? Thanks!

    0Reply
  • Walter Shatford
    Investor · Monterey Park, CA · Member since 2016 · 24 posts · 2 votes
    10y

    I can e-mail you can you PM me.

    0Reply
  • Shan K.
    San Diego, CA · Member since 2016 · 54 posts · 11 votes
    10y

    Hi Dave,

    Welcome to BP. I am also REI with SW Engineering and business background. I am looking to partner up like minded investor like yourself and invest in large multifamily units. I have couple of excellent goole sheets spreadsheets and curious to see what you have developed. I am also looking to develop an amazing deal analyzer tool/mobile app which automatically import data from MLS,Zillow, rentometer , greatshools and many other source.

    Cheers

    Shan        

    0Reply
  • Brett Snodgrass
    Investor · Indianapolis, IN · Member since 2014 · 2k+ posts · 601 votes
    10y

    Hi @Dave Labowitz, 

    Welcome to the BP community. I'm posting in response to your number 2:) I've been wholesaling for a while in the Indy area. Feel free to message me and connect. Either way all the best in your investments!

    0Reply
  • Kurt S.
    Investor · Dallas, TX · Member since 2015 · 2 posts · 0 votes
    10y

    @Dave Labowitz,

    Welcome to BP! I am a new investor myself focusing on buy-and-hold strategies and have been working on an excel model to analyze single family opportunites. I'm curious to learn what your VBA powered model can do and was wondering if you would be able to share. Thanks in advance!

    Best,

    Kurt

    0Reply
  • Mike D'ArrigoPro Member
    Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
    10y

    @Dave Labowitz Welcome to BP. Indianapolis is a strong cash flow market. We've been selling turn keys there successfully for several years. I'd caution you about MF in Indy though. Personally, I think it's a SFR market. Most of the MF's are in old, rough parts of the city with a few exceptions. If you really want to invest in MF, tread very cautiously. I'd be happy to share my experience and perspectives with you.

    0Reply
  • Account Closed
    Investor · Honolulu, HI · Member since 2013 · 3k+ posts · 1k+ votes
    10y
    Originally posted by @Mike D'Arrigo:

    @Dave Labowitz Welcome to BP. Indianapolis is a strong cash flow market. 

    Is this a Turnkey marketing buzz phrase or is there a definition?

    STRONG cash flow.   Absolutely NO appreciation.

    Strong cash flow.  Properties that the only reason there is POSSIBLE cash flow is because the prices are so low but the prices are so low because the possible cash flow is NOT collectable.

    0Reply
  • Mike D'ArrigoPro Member
    Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
    10y

    @Account Closed I never advocate or recommend low end asset classes in any market which is why I cautioned @Dave Labowitz about MF in Indianapolis. You're right. It's difficult if not impossible to collect rent on cheap, low end properties and I'm the first to tell people that. We had terrible experience with them years ago which is why we stick to higher end B and A class properties.

    0Reply
  • Mark Radford
    Investor · Indianapolis, IN · Member since 2013 · 80 posts · 64 votes
    10y

    There are duplexes that can cash flow nicely for you in Indy but they are getting very rare. I'd stick to the Broad Ripple and South Broad Ripple (SOBRO)area for those.

    I've noticed many out of state investors have property on the Far East Side.  There are some good deals and you can rent them forever but dont look for much appreciation on that side of town.  Indy is funny. I owned a property near downtown years ago. Bought it for 25k. Rehabbed, rented and sold after 5yrs for 140k. Sounds nice but had we been 3 blocks east the same properties were going for 250k. The gentrification surge stopped just short of my block and even now 10yrs later that block has actually gone down a little. Crapshoot.  Have a good local team who will tell the truth. I don't know much about Section 8 but many of these turnkey properties are in areas where that will be your only choice!  There isn't big industry or many high paying jobs here. 

    1Reply
  • Joe Ellis
    Fort Worth, TX · Member since 2015 · 121 posts · 28 votes
    10y

    What is Indianapolis' biggest revenue producer? What brings people in?

    0Reply
  • Account Closed
    Indianapolis, IN · Member since 2013 · 210 posts · 149 votes
    10y

    @Joe Ellis

    Anthem 

    0Reply
  • Joe Ellis
    Fort Worth, TX · Member since 2015 · 121 posts · 28 votes
    10y

    @Account Closed, Care to elaborate? As far as I can tell it's just the one healthcare place. Is that really driving a city of over 800k people?  

    0Reply
  • Ryan Poske
    Specialist · Indianapolis, IN · Member since 2016 · 133 posts · 43 votes
    10y

    @Dave Labowitz

    If you need any assistance in finding contractors please feel free to contact me. I work with several that specialize in rehabs.

    0Reply
  • Account Closed
    Indianapolis, IN · Member since 2013 · 210 posts · 149 votes
    10y

    @Joe Ellis

    You asked a question about what was Indianapolis's biggest revenue producer? I answered, Anthem. I didn't answer your second question, because I do not have the time right now. 

    Here is some links that will answer your questions that you have. The information is from the Indianapolis Chamber of Commerce and other sources. 

    http://www.city-data.com/us-cities/The-Midwest/Ind...

    http://population2016.com/population-of-indianapol...

    http://www.msn.com/en-us/money/companies/the-large...

    Feel free to call me if you have any other questions. I will be in the field looking at properties. 

    2Reply
  • Ciprian L.
    Real Estate Agent · Burbank, CA · Member since 2012 · 271 posts · 79 votes
    10y

    @Dave Labowitz Welcome to BP!

    I can give you some bad news about Indianapolis if you are interested :).

    I started investing in Indianapolis 4 years ago and I had good and bad experiences. Make sure you have enough cash reserves to get over the bad experiences, at the beginning when you have just a few properties, one bad deal can make you loose all your properties if you don't have enough cash reserves. 

    1Reply
  • David Thompson
    Investor · Austin, TX · Member since 2013 · 933 posts · 1k+ votes
    10y

    Hi Dave,

    Looks like you are comfortable investing out of state and looking at bigger deals. Have most of your investments been as a LP and are you accredited? My partners closed on a 320 apt unit in North Dallas (great area) in May w10% CoC expected returns and 22 % IRR/yr over a 5 year hold. We buy value - add apts and have a strong track record. I know you mentioned Indianapolis but not Texas. We just won another deal on a 275 + unit in Dallas as well. We find Dallas is a top 5 market for job and pop growth historically and next 5 years. I look at Indy as more of a cash flow market while Dallas as cash flow w/upside appreciation potential due to the growth. Looking for LP capital. Can send you the deal to look over if desired for educational purposes and potential future interest.

    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
    10y

    Welcome to the site @Dave Labowitz

    1Reply
  • Rod HanksBusiness Member
    Insurance Agent · Dallas, TX · Member since 2013 · 743 posts · 462 votes
    10y

    @Dave Labowitz

    Hi Dave welcome to BP! You have received a ton of great advice so far and looks like you may have some potential partnerships to explore in this thread. That's the reason I love BP is that sometimes you feel like you are on an island by yourself but you come to this forum and interact with a ton of like minded individuals.

    I have been looking for a spreadsheet for my rentals and I would love to see what you have developed with your VBA excell spreadsheet. Please share!  

    Also, If there is anything I can do for you in regards to insurance please contact me.

    Rod Hanks Insurance4.9165 Reviews
    WebsiteView Page
    0Reply
  • Dave Labowitz
    OP
    Los Angeles, CA · Member since 2016 · 4 posts · 4 votes
    10y

    @Mike D'Arrigo, @Mark Radford, @Ciprian L., @Erin Donlan

    Thank you all for your comments on the Indy market. From what I'm seeing so far, cash flow on 2-4 unit residential seems to be superior to SFH. If MFHs don't play well in Indianapolis because they are in bad areas or attract lower quality renters, what's the best way to get cash flow in Indy? I'm fine with sacrificing some appreciation for cash flow, but am definitely looking for the highest cash flow possible.

    Are there other markets you recommend? 

    Thanks!!

    0Reply
  • Mike D'ArrigoPro Member
    Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
    10y

    @Dave Labowitz There are the occasional exceptions and if you can get a MF in a good area of Indy, it can perform well. They're hard to find though. Don't assume that the cash flow on MF is better than SFR. You have to collect the rent first which can be pretty hard in a lot of areas. Then you have to hope that they tenant doesn't trash the place which often they do. We sell turn keys in both Indianapolis and Kansas City. I like both for SFR but personally prefer Kansas City over Indy for MF. You might want to check out the KC market. If you're interested, you can find a lot of info on our website.

    0Reply
  • Donovan Castaneda
    Kansas City, MO · Member since 2015 · 66 posts · 9 votes
    10y

    welcome to BP I'm located located in Kansas City PM if you have any questions about Kansas City 

    0Reply
  • Larry Fried
    Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
    10y

    @Dave Labowitz I totally agree with Mike about his caution around MF investing in Indy, these are generally hard to invest in if you are doing so at a distance.  Performance is not going to be what it is on paper.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free