This is my first post on BP. I'm looking to BRRRR a property in Indy and 2BR have a house under contract just north of the littleflower neighborhood. Does anyone have experince in this area? It seems to be a C to C- neighborhood which has me nervous. I'm also a little nervous with how the appraisal will come in after rehab. The comps i've seen range from 50k to 120k.
Anyway, any advice or recommendations will be welcome.
@Bret Winegar If the numbers make sense I'd say go for it. Is this you're first BRRRR? Care to share any of the numbers? Are you looking just north of I-70? The tenant pool is going to be rough but set strict criteria and you should be okay.
Be very cautious of purchasing in this area. It's nothing like Little Flower. Drive the streets and find out for yourself if you don't agree. I have property in the Community Heights/Irvington neighborhood.
Thanks Jaron. I appreciate the insight. The property is south of I70 and just north of 16th st. Yes this is my first BRRRR and i'm partnering with a relative while we get our feet wet with out of state investing. Here are some rough numbers:
- Acquisition Price: $35K
- Rehab Estimate: $14K
- ARV: hoping for $70K+
- Rent: $700
- Cashflow after refi: $100-$130
Those numbers are great man. That's not a bad area and $700-900 per month is spot on for rent.
@Bret Winegar the areas around Brookside Park are coming around. I don't think we will really see major upside until Spring 2021 though. I would be selective about the rehab as to not over invest incase the appraisal comes back lower than expected.
As @Jaron Walling said, be very hesitant if investing north of I-70 or anywhere within a few blocks of Sherman Dr as it has become a warzone over the last year. The crime may not look terrible in some parts of Trulia, but there seems to be a shooting or murder within 3 blocks of Sherman every week or two for at least the last 10 months.
@Keith Shadle it's not uncommon for things to soften during an election year for both real estate and wall street as consumer confidence becomes more leery. The face is, we are about to see the Barnum and Bailey, Greatest Show on Earth, election year. Probably the biggest circus show of our life time. I don't see a lot of people looking to overpay for properties during this time. I could be wrong, but I'm expecting a soft market until at least the spring after the next presidential term. If the office changes to someone with highly different views on economics (heavy socialism) it's possible that the real estate market may take several years to stabilize under a new political climate and policy changes.
Regardless of your political leanings, everyone has to admit that this election cycle is going to be full of many surprising moments.
As a local investor and wholesaler in Indy, I've seen a lot of activity in little flower recently. It can be a good bet or a risky play depending on the street honestly. Some streets are pretty solid with good neighbors who care and watch out for the street and each other. Others where they don't care and your lawn mower may disappear from your front lawn while you are threading the trimmer (ask me how I know...lol) so do your homework and dial in the comps to a few blocks not a half mile and same street if you can.
All the best!
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