Looking to connect with some folks in Bloomington, IN. I have reached out to some members that I found via the search feature but haven't received many replys.
Michael, what topics are you looking to connect about? I’ll share what I can about my experiences in Bloomington.
I will be moving out there to attend IU for my masters and I am trying to get a feel for the market. I am looking to buy a place for school then turn it into a rental when I leave. I know there are some things/fees associated with HAND, but am not sure of specifics. I am also trying to get some kind of data on the seasonality or ebb and flow of tenants of since it's a college town.
I hope you enjoy Bloomington! HAND can be a breeze to deal with or a nightmare.
HAND is about $100/year... Or $100 inspection, which maybe lasts for 3 years? something reasonable.
If you purchase a home that was previously a rental, they will have a file on it, and everything should be up to date with minimal repairs needed.
If you buy a home that was a single family house, you could be in for some trouble. They are very thorough, which can be annoying, but it also forces you to make repairs that your probably want done anyways.
Some notes from my experience (just a representative of what I have learned, the list could be MUCH longer, but it will show you how picky they can be).
-HVAC -- you have to get a receipt from a HVAC contractor saying its running clean
-Bathroom tub needed more caulking around the edge, to prevent water from reaching subfloor
-Toilet was running
-a Window wouldn't hold itself up, which ended up being a pretty expensive repair. If you buy a house with old wood windows with broken counterweight ropes, its a mess to fix
-I got a condo with a party wall. In the attic, the drywall between units wasn't seamed. I had to get drywall compound on all seams
-Closet bi-fold doors were off their hangers
-Front door needed some more weatherstripping to seal out cold air.
The 1% rule will be next to impossible to hit... BUT, because you are buying to live in while in school, it is absolutely worth buying, and should wind up cash flowing pretty well once you leave.
I worked with and recommend Evan Buckmaster in Bloomington. He is in a large office and knows of deals on and off market. He is great, and his office is able to get everything done quickly. Their office is literally next door to the biggest Title company in town, so everyone knows each other.
Thanks @Charles Sinn . That's great information. I figured the 1% rule was out, the RE market everywhere is really hot right now and inventory is low. I have been doing a lot of back of the envelope calculations using 1% of the financed amount vice 1% of purchase price and that seems to be the go no-go point for positive cash-flow for a lot of deals these days.
From what I've seen, and my investigation is just in it's invancy, rental rates seem to drop off qucikly as you move away from the university (like outside 1 mile). Perhaps you can correct me if I am wrong.
I'll shoot Evan an email right now.
Yes, rental rates do go down as you move away from campus. But more and more millennial and grad students are starting to live further away from campus, so the rental market it still strong outside of the immediate vicinity of campus. Also, you will be tempted to buy something west of town based on prices... But be careful, everything gets lower quality as you move west on the map.
Also do research on the new hospital that is being built. The biggest winners and losers in the real estate game over the next decade will come from this hospital moving. Know one knows what will happen with the properties surround the old hospital, but I would bet that any neighborhoods around the new hospital's location will benefit. These areas arn't really student related housing, but worth looking into.
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