Newbie from Seattle, WA

18 Replies

Hi All,

My name is Ayan. I am a Software Engineer from Seattle, WA looking to get into get into Real Estate Investing. I am interested in Buy and Hold long term rental properties in Midwest area. I have been listening to podcasts, watching webinars, and reading books and articles related to real estate investing for about 6 months now. After reading "Long-Distance Real Estate Investing by David Greene", I got the courage to invest out of state.

After comparing various markets in Midwest, I am now looking to invest in Indianapolis, IN. I am working on shortlisting B-class neighborhoods that are majorly owner occupied, good school districts, low crime / vacancy rate, positive population migration over the years, etc. Simultaneously I try to analyze 1-2 properties per day to get a feel for the type of returns that can be expected from a particular neighborhood. My goal is to acquire a Single Family or Duplex through BRRRR in the next 6 months.

I would really appreciate any feedback and would love to connect with you all.

Hi @Ayan C.

I live in Indianapolis and caught the real estate bug recently too. I've been aggressively reading/researching for the last two months. Currently, we are working on getting our finances ready so we can jump on a deal when we find one. We have one rental, but we just converted our first home into a rental. I'm not a veteran investor by any means, but I'm happy to help however I can.

Good luck!

Hi @Ayan C. you are right you can't find cashflow in primary markets.

As an engineer too your time is likely spent at your day job than trying to find rare deals. I bought one rental in in indy and think its a solid market. Just don't buy anything that rents for under 900 a month.

Welcome, Ayan! Sounds like you have a solid plan for your real estate investment journey. So glad you've already plugged into the Bigger Pockets podcast - that was a huge source of education for me when I first started.

If you haven't already, I would recommend that you start talking to lenders (banks, mortgage brokers, credit unions, etc.) I'm not sure what your financing strategy is for your early phases, but it will save you time and money in the long run if you're familiar with all your options now. And be sure to check with folks other than your family banker (where you carry all your accounts) - you'd be surprised how much price / term shopping can save you on each deal.

Best of luck to you and I look forward to following your journey!

@Aaron Fuhs Thanks for sharing. I appreciate it. As you are from Indy, I would love to pick your brain on the neighborhoods you're looking at. I am trying to find a lender too and get pre-approved. Do you have a preferred lender that you can recommend? 

@Lane Kawaoka Thanks. I will keep that in mind. Which area did you buy your property in and when? What does the cash flow look like? 

@Christina J. Thanks for the tip! I have been looking to find reputable credit unions in Indy. But I believe they usually have a requirement of living within X miles from the office. For my first rental, I am looking to take a conventional loan by putting 20% down.

** I don't work for this bank, but I use their product all the time with Conventional loan investors - Centier Bank in Indy has an amazing neighborhood loan program for purchases of 1-4 unit homes in low to moderate income census tracts.

  • 20% down payment
  • 30 year fixed rate product with no pre-payment penalty
  • no underwriting and processing fees (a credit of $745)
  • low interest rate; typically in the very low 4.X%
Originally posted by @Ayan C. :

@Christina J. Thanks for the tip! I have been looking to find reputable credit unions in Indy. But I believe they usually have a requirement of living within X miles from the office. For my first rental, I am looking to take a conventional loan by putting 20% down.

@Ayan C.

Welcome to the BP family! Good to have you here! Here are some recommendations for you:

Find and connect with other BP members that are in your area: http://www.biggerpockets.com/meet
Set up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alerts
Read Beginner’s Guide: http://www.biggerpockets.com/real-estate-investing
Check out BP Podcasts: http://www.biggerpockets.com/renewsblog/category/podcast/

Wishing you the best!

@Ayan C. Sorry for the major delay. Got caught up in life. I am still investigating that myself. The north side of Indianapolis is where people are consistently moving to. Unfortunately, that's generally the part of town that's demanding above asking price on properties. I'm seeing that the south side is a healthy balance of good properties and good demand. Haven't pulled the trigger on anything yet though. Still getting my ducks in a row.

As for a preferred lender, I don't have one yet. I've only really worked with larger banks as it's related to our personal home financing. As for real estate investing, I'm still making connections with people at smaller banks.

Hope this helps. Let me know if you need anything else. Good luck!

@Ayan C. @Aaron Fuhs there are some areas north of downtown but south of Carmel that will probably fulfill your expectations. You'll have to get them from the right folks because they never hit the MLS and remember it's very street to street in Indy. So don't take the word of someone selling you something, find out for yourself.

If you have any questions I'm happy to answer any questions you might have. Folks were very friendly and helpful when I was getting started so I like to pay it forward. DM me and I can give you my number if you want to talk. 

Hello! @Ayan C.

Welcome to BP, and congratulations on making the decision to invest in your future via real estate.

I have written a few blog posts that may help you get started here on BP, and with your investing. Please click on the links, give them a read, and share your thoughts in the comments.

First is a post that I feel will help not get overwhelmed with the amount of info that is here on BP:

https://www.biggerpockets.com/blogs/5868/52761-the-simple-guide-to-getting-started-on-bp



The second is a post that will help get you focused with your real estate investing goals:

https://www.biggerpockets.com/blogs/5868/52743-im-new-to-bp-any-advice-would-be-appriciated

The last one is a post that will help you choose an “investor friendly” real estate agent. There are many agents out there, but it’s important to choose the right one.

https://www.biggerpockets.com/blogs/5868/52724-im-new-to-investing-how-do-i-find-an-investor-friendly-agent

I love answering questions if you have any! Good Luck :)

Hi @Ayan C. - I'm a fellow out of stater from Seattle.  I have property in IL and one under contract in Indianapolis (inspection was just completed today).  Would love to be a resource for you if I can help in any way.  Though I'm new-ish to Indy, I'm local to you :-)

@Ayan C. Congratulations on taking your first step. I've been active in the Indianapolis market for several years and know it well. Feel free to reach out if I can be of any help.

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