Newbie to Indianapolis!!!

12 Replies

Greeting to all! My husband and I have been listening to the podcast for a while and it leads me here! We are excited to start investing in rental properties in Indianapolis area. We are targeting single family houses that are below $50K, and around $1000 cash flow a month. We would love to make some friends or partners here share ideas and keep learning!

Please connect with me! Cannot wait to share ideas and resources with you. 

I don't own any properties in Indy (yet) but everything I've been reading to date leads me to believe $1000 rents for sub $50k properties isn't going to happen.

You'd be better off expecting $600, $700 and maaaaaybe $800 a month.

Still, pretty damn good returns!

Promotion
Ashcroft Capital
A national multifamily investment firm
Three Reasons Investors May Prefer Real Estate
Read three reasons why investing in real estate private placements may provide several advantages.
Read More Here

@Ann Horlacher Cash flow indicates "income - expenses," so I think that by "$1,000 in cash flow a month," you meant the monthly rental amount you expect (at which point your "cash flow" will be a significantly lower).

Regardless of which one you meant, @Ken Badziak is correct in that there is very little chance you'll be able to fetch that rental amount for a property under 50k. You can expect more of the amounts he's mentioned. 

It's awesome you're getting started, however! There's a lot to learn, and plenty of resources on here to do so!

Ann Horlacher $1000 a month shouldn't be too hard to hit.

A good rule of thumb is to take your rent, multiply by .60 for expenses, then subtract any debt servicing (if any) from that.

So if you're paying all cash for that house and get $700 a month in rent, subtract 40% (X .60) and you get $420 a month positive cash flow.

If you put 25% down ($12.5k) and put it on a 30 year fixed, your monthly P&I payment comes out to about $200.

So if you go all cash you can hit your cash flow target of $1000/mo with just three houses.

If you leverage you can do it with 5!

Good luck!

Welcome to BP @Ann Horlacher!

All good points above.

I use the BRRRR strategy and shoot for about $200 net per door after all expenses and debt service. Once I refi, I typically have zero out of pocket and then rinse and repeat.

Hitting $1k in income with 4 or 5 homes should be easy here in Indy.

- it's always good to see another Hoosier utilizing this great site!

Of course, you need to read The Ultimate Beginners Guide to REI here on BP

If you haven’t already, please read/listen to these books ASAP!

Flip2freedom episode 77http://www.flip2freedom.com/a-3-step-formula-to-a-... - LISTEN TO THIS TODAY!

Rich Dad Poor Dad

Rich Dads Cash Flow Quadrant

Rich Dads Increase your financial IQ

The Real Book of Real Estate

The ABC’s of RE Investing

The ABC’s of PM

Rich Dad RE Tax Advantages

The 10X Rule

The E-Myth

The 4 Hour Work Week

BiggerPocketsPodCast -I hear #136 is exceptional!

Wholesaling101 You Tube Channel

Kent Clothier – You Tube Memphs Invest channel

To add to what has been said you can get a 50-60k ARV property for 30-40k after repairs pretty easy in Indy and most of those will rent for about 600 a month and give 300 cash flow.

You can get 100k properties for about 70k all in which rent for 1000-1200 so will give about 700-900 cash flow.

So 1000 a month cash flow will be pretty easy if you invest a total of about 80k.

You can then flip to self like @Shawn 

@Shawn Holsapple undefine   mentioned

Hi All! Stale thread here but just wanted to throw my name out there; I'm an investor from Austin, TX looking to do BRRRR buy-and-hold deals in Indianapolis. Targeting $30k single family or duplex homes that need $10k-$15k worth of work, will rent for $750-800. Glad to meet all of you; looking for strong buyer broker suggestions, someone who can get properties that aren't on the MLS and is well-networked. Thanks y'all!

Promotion
Sundae
Property Marketplace
Find Professionally Vetted Properties from Motivated Sellers
Eliminate the need to hunt for houses again. We bring your next investment opportunity to you.
Sign Up for Free

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you