Indianapolis. Recommendations for first investment? (SFR vs Dplx)

27 Replies | Indianapolis, Indiana

Hello,

My name is Joseph and I am a relatively new RE investor, I am enjoying reading BP forums and I intend to contribute also.

I started my journey as a RE investor in 2017 with 2 SFR in Houston and 2 SFR in KC in 2018. I am as passive as it gets, so I find places that are ready to rent or with little deferred maintenance. I rely on local PMs.

I am ready to add 2 more this year and my research indicates Indianapolis as a good market. 

Doing local Indy research, I can see great opportunities for both SFR and Duplexes, which is for what I have funds this year (with leverage).

Any Indy expert that can shed some light about what would be a better start for Indy between the 2? I am happy with SFR so far but Multi-Fam intrigues me (remember my desire to stay passive).

Some additional context:

- I only invest in B and A- areas, the Duplexes I am looking at are in these locations to try to get more "permanent" renters

- My strategy is long term cashflow, though I don't want to land in places that will decrease dramatically in appreciation.

Thanks !!!

Alberto

@Joseph Torres in the A-B duplex areas in Indy, you’ll probably see residents turnover every 2-3 years on average. Not sure if this is permanent enough for you or not. The upside is that the turnovers are usually pretty smooth. The downside with your criteria is that competition has really driven up the prices. You’ll be lucky to clear the 1% rule. So cash flow might be slim for the first couple years until you get a few rent increases.

If you get on some wholesaler lists you might see some B level properties but they’ll need some updating. Speaking to the duplex’s here. 

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Thanks @Aladdin P. and @Mark Jones for the responses. I have found doing some research in local listings Duplexes offered in the range between 100 to 140k, currently rented for 1300 and 1400 (600 to 700 each unit), which would provide a positive cashflow from day 1. In theory those are in B class neighborhoods. (Crown Hill close to Children's Museum)

2 to 3 year turnaround is very acceptable for me.

I've got two duplexes in Indy, and the are performing very well.  These are completely passive investments, I spend about an hour or two a month looking over bills and statements. 

Originally posted by @Joseph Torres :

Thanks @Aladdin P. and @Mark Jones for the responses. I have found doing some research in local listings Duplexes offered in the range between 100 to 140k, currently rented for 1300 and 1400 (600 to 700 each unit), which would provide a positive cashflow from day 1. In theory those are in B class neighborhoods. (Crown Hill close to Children's Museum)

2 to 3 year turnaround is very acceptable for me.

Honestly, I'd consider the area around the children's museum to be more of a C- or D neighborhood, especially with that rent amount.  It does vary street by street but really all along MLK Blvd is rough and not close to a B neighborhood by any means.  Not saying its a bad idea, I just want you to be aware of how that area really is.  If I can be of more assistance feel free to connect!

Thank you Account Closed appreciated the feedback. So, which areas of Indianapolis should I be screening if I want to stay in B class neighborhoods? I am not in a rush and willing to take the time. I am also starting to meet local brokers. 

@Mark Jones just wanted to say thank you - I've been following your comments here and they have been extremely helpful for me in shaping my price point criteria (which I post on my website for wholesalers to see)!

I am an investor as well so I am pretty data-driven. I would like to pick your brain on price points if you don't mind...

I think I have a pretty good idea of the C-Class after looking at several properties. It looks like they typically tend to rent $750 to $850 a month - if I want a 12% cap rate I should look for properties around the $40,000 range as an all-in price for single-family.

But I would like to expand my criteria to B class properties as well to cast a wider net.

If I'm looking at b-class properties in the $900 to $1,000 range what all-in price point do you think I should be looking for if I am aiming for a 10%-12% cap rate? I was thinking $65,000 to $70,000 for single family.

Updated over 2 years ago

Just saw that you are also an engineer - cool!

Updated over 2 years ago

(I am too)

@Joseph Torres Have you driven any of the streets near Crown Hill or the Children's Museum? It was one of most dangerous areas of Indianapolis for many years. It's cleaning up slowly only due to flips in Mapleton Fall Creek, on College Ave, and new Red Line bus transit system. I lived at 34th and College Ave about 4 years ago. 

As many have already touched on... you may be stretched to find a duplex in an A or B class neighborhood that will realize great returns. If you turn to the C/C- neighborhoods you will obviously see higher returns. That in mind, greater returns come with greater headaches. (higher turn over, more capex, etc.) 

The biggest problem that I see with folks who transition into the C/C- duplexes is that they are often older properties that do not have separate utilities, garages, lack bedroom/bath count. Be aware of this when analyzing deals. Although multi-family is sexy there is a lot of buzz around it right now. Careful to not buy into the hype if the deal doesn't make sense!  

Perhaps take a look at Speedway, Beech Grove, or even Greenwood if you are looking for a SFR that is A/B. These are predominately blue collar working class neighborhoods that tenants will stay for long periods of time. You will pay a higher premium, but will not get a 1920s product that has failing major mechanicals and other heaps of problems.

If it don't cash flow... let the grass grow!! Onto the next one! 

Let me know if I can be of any help! 

Cheers,

Zach 

Originally posted by @Zach Hoereth :

As many have already touched on... you may be stretched to find a duplex in an A or B class neighborhood that will realize great returns. If you turn to the C/C- neighborhoods you will obviously see higher returns. That in mind, greater returns come with greater headaches. (higher turn over, more capex, etc.) 

The biggest problem that I see with folks who transition into the C/C- duplexes is that they are often older properties that do not have separate utilities, garages, lack bedroom/bath count. Be aware of this when analyzing deals. Although multi-family is sexy there is a lot of buzz around it right now. Careful to not buy into the hype if the deal doesn't make sense!  

Perhaps take a look at Speedway, Beech Grove, or even Greenwood if you are looking for a SFR that is A/B. These are predominately blue collar working class neighborhoods that tenants will stay for long periods of time. You will pay a higher premium, but will not get a 1920s product that has failing major mechanicals and other heaps of problems.

If it don't cash flow... let the grass grow!! Onto the next one! 

Let me know if I can be of any help! 

Cheers,

Zach 

 Zach,

That's some very helpful advice! Can I ask where you personally own property and why you invested there?

I'm trying to learn more about the Indianapolis neighborhoods as well.... I'm actually coming down there in August to look at properties.

thanks

Amil

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This conversation assumes that there is an abundance of B/A class duplexes that are available. There are very few to begin with, and a lot of competition for them. I'm not sure that you'll even find one with good enough numbers to consider. Within C class, duplexes are much more volatile than SFH's.

Originally posted by @Amil D. :
Originally posted by @Zach Hoereth:

As many have already touched on... you may be stretched to find a duplex in an A or B class neighborhood that will realize great returns. If you turn to the C/C- neighborhoods you will obviously see higher returns. That in mind, greater returns come with greater headaches. (higher turn over, more capex, etc.) 

The biggest problem that I see with folks who transition into the C/C- duplexes is that they are often older properties that do not have separate utilities, garages, lack bedroom/bath count. Be aware of this when analyzing deals. Although multi-family is sexy there is a lot of buzz around it right now. Careful to not buy into the hype if the deal doesn't make sense!  

Perhaps take a look at Speedway, Beech Grove, or even Greenwood if you are looking for a SFR that is A/B. These are predominately blue collar working class neighborhoods that tenants will stay for long periods of time. You will pay a higher premium, but will not get a 1920s product that has failing major mechanicals and other heaps of problems.

If it don't cash flow... let the grass grow!! Onto the next one! 

Let me know if I can be of any help! 

Cheers,

Zach 

 Zach,

That's some very helpful advice! Can I ask where you personally own property and why you invested there?

I'm trying to learn more about the Indianapolis neighborhoods as well.... I'm actually coming down there in August to look at properties.

thanks

Amil

 Hey Amil,

Glad I could share some insight! I personally own mid size multi-family in tertiary markets about an hour outside of Indianapolis. In 2017, I was purchasing SFRs on the west side of Indianapolis in C/C- neighborhoods. I like the west side of Indy because I know it best from growing up around there. I was able to utilize my local market knowledge to get into deals that cash-flowed very well for me. I was purchasing 2/1s for buy & hold. As I noticed the market begin to jump up I sold everything and moved into multi-family. 

Keep in mind that locals often do not have the cost of PM and may have a network of direct contractors to perform maintenance & repair on their properties. Out of state investors usually have to lean on their PM to get these done hence the fees they pay therefore decreasing returns. My numbers will look a little different than yours because I am able to buy in my back yard if you will. 

Cheers,

Zach

@Zach Hoereth

Hi Zach, thanks for sharing your previous experience. I find it interesting you are investing in tertiary markets an hour outside of Indy. Would you mind sharing the particular reason for that?

Those are markets I’ve heavily considered as a newbie but have been trying to understand why more investors are passing on those areas whether that be numbers aren’t rich enough for them, access to PMs, or some other economic factors that pose too great of risk to be an hour or so outside a larger market.

Would love to hear your thoughts!

Best,

Corey

Originally posted by @Zach Hoereth :
Originally posted by @Amil D.:
Originally posted by @Zach Hoereth:

As many have already touched on... you may be stretched to find a duplex in an A or B class neighborhood that will realize great returns. If you turn to the C/C- neighborhoods you will obviously see higher returns. That in mind, greater returns come with greater headaches. (higher turn over, more capex, etc.) 

The biggest problem that I see with folks who transition into the C/C- duplexes is that they are often older properties that do not have separate utilities, garages, lack bedroom/bath count. Be aware of this when analyzing deals. Although multi-family is sexy there is a lot of buzz around it right now. Careful to not buy into the hype if the deal doesn't make sense!  

Perhaps take a look at Speedway, Beech Grove, or even Greenwood if you are looking for a SFR that is A/B. These are predominately blue collar working class neighborhoods that tenants will stay for long periods of time. You will pay a higher premium, but will not get a 1920s product that has failing major mechanicals and other heaps of problems.

If it don't cash flow... let the grass grow!! Onto the next one! 

Let me know if I can be of any help! 

Cheers,

Zach 

 Zach,

That's some very helpful advice! Can I ask where you personally own property and why you invested there?

I'm trying to learn more about the Indianapolis neighborhoods as well.... I'm actually coming down there in August to look at properties.

thanks

Amil

 Hey Amil,

Glad I could share some insight! I personally own mid size multi-family in tertiary markets about an hour outside of Indianapolis. In 2017, I was purchasing SFRs on the west side of Indianapolis in C/C- neighborhoods. I like the west side of Indy because I know it best from growing up around there. I was able to utilize my local market knowledge to get into deals that cash-flowed very well for me. I was purchasing 2/1s for buy & hold. As I noticed the market begin to jump up I sold everything and moved into multi-family. 

Keep in mind that locals often do not have the cost of PM and may have a network of direct contractors to perform maintenance & repair on their properties. Out of state investors usually have to lean on their PM to get these done hence the fees they pay therefore decreasing returns. My numbers will look a little different than yours because I am able to buy in my back yard if you will. 

Cheers,

Zach

Zach,

Excellent - That's very helpful! and it's actually great that you have  experience on the west side with the C's.

What areas might you recommend on the west side for Cs? For 3 beds, I'm looking for something that rents for $750 to $850 with an all-in purchase price of $30,000 to $35,000.

For 2 beds I'm looking for something that's closer to $15,000 to $20,000. If you check out my profile and has a link to my website which has all the details on exactly what I'm looking for.

maybe you know some lenders as well that would be willing to provide loans on $30k range properties?

maybe we can chat when I come down to Indy.

best

Amil

Originally posted by @Corey Minard :

@Zach Hoereth

Hi Zach, thanks for sharing your previous experience. I find it interesting you are investing in tertiary markets an hour outside of Indy. Would you mind sharing the particular reason for that?

Those are markets I’ve heavily considered as a newbie but have been trying to understand why more investors are passing on those areas whether that be numbers aren’t rich enough for them, access to PMs, or some other economic factors that pose too great of risk to be an hour or so outside a larger market.

Would love to hear your thoughts!

Best,

Corey

At the end of the day I am a buy and hold guy. I am not a REIT or a large syndicator just yet, so I do not dive as deep into market analytics. Don't get me wrong I ensure I underwrite conservatively, but I have noticed many investors over analyzing. Prior to getting properties under contract I get a feel for what PM companies are in the market to see if they will be a good fit for what I am looking to do. I am a big believer in you live and die by your management. Once I have established who I will utilize as a PM I begin to drive the market from properties that I have already identified as potential targets.

These deals do not come from brokers as I am the one who procures them. Too many new investors want to call every broker in town and attempt to source deals and having little to no experience will not get you very far. I would encourage folks to take a week or so and go visit their target market. Meet with other investors, talk to PMs, drive the area, etc. It says a lot about an investor who is willing to spend time in the market that they will be investing in. As a broker myself, when investors do this it proves to me that they are serious and ready to move on property, so when I come across something they are the first person that I call when I find an opportunity. 

Keep in mind be careful with getting yourself into a one horse town as it will be tough to attract tenants and decent vendors. Tertiary does not always mean population: 1,000.  Hope this helps! 

Cheers,

Zach  

Originally posted by @Amil D. :
Originally posted by @Zach Hoereth:
Originally posted by @Amil D.:
Originally posted by @Zach Hoereth:

As many have already touched on... you may be stretched to find a duplex in an A or B class neighborhood that will realize great returns. If you turn to the C/C- neighborhoods you will obviously see higher returns. That in mind, greater returns come with greater headaches. (higher turn over, more capex, etc.) 

The biggest problem that I see with folks who transition into the C/C- duplexes is that they are often older properties that do not have separate utilities, garages, lack bedroom/bath count. Be aware of this when analyzing deals. Although multi-family is sexy there is a lot of buzz around it right now. Careful to not buy into the hype if the deal doesn't make sense!  

Perhaps take a look at Speedway, Beech Grove, or even Greenwood if you are looking for a SFR that is A/B. These are predominately blue collar working class neighborhoods that tenants will stay for long periods of time. You will pay a higher premium, but will not get a 1920s product that has failing major mechanicals and other heaps of problems.

If it don't cash flow... let the grass grow!! Onto the next one! 

Let me know if I can be of any help! 

Cheers,

Zach 

 Zach,

That's some very helpful advice! Can I ask where you personally own property and why you invested there?

I'm trying to learn more about the Indianapolis neighborhoods as well.... I'm actually coming down there in August to look at properties.

thanks

Amil

 Hey Amil,

Glad I could share some insight! I personally own mid size multi-family in tertiary markets about an hour outside of Indianapolis. In 2017, I was purchasing SFRs on the west side of Indianapolis in C/C- neighborhoods. I like the west side of Indy because I know it best from growing up around there. I was able to utilize my local market knowledge to get into deals that cash-flowed very well for me. I was purchasing 2/1s for buy & hold. As I noticed the market begin to jump up I sold everything and moved into multi-family. 

Keep in mind that locals often do not have the cost of PM and may have a network of direct contractors to perform maintenance & repair on their properties. Out of state investors usually have to lean on their PM to get these done hence the fees they pay therefore decreasing returns. My numbers will look a little different than yours because I am able to buy in my back yard if you will. 

Cheers,

Zach

Zach,

Excellent - That's very helpful! and it's actually great that you have  experience on the west side with the C's.

What areas might you recommend on the west side for Cs? For 3 beds, I'm looking for something that rents for $750 to $850 with an all-in purchase price of $30,000 to $35,000.

For 2 beds I'm looking for something that's closer to $15,000 to $20,000. If you check out my profile and has a link to my website which has all the details on exactly what I'm looking for.

maybe you know some lenders as well that would be willing to provide loans on $30k range properties?

maybe we can chat when I come down to Indy.

best

Amil

 Amil, how many current properties have you purchased with this criteria? Now I could be missing something because I have not been doing this for 50 years, so I can only speak from personal experience. I thought that I was picking up a home run 2/1 rent ready for 28k in 2017. (Rented for $650 & later sold for 48.5K) Later that year I purchased a few more 2/1s that needed a bit of cosmetic rehab that put me closer to the 35k mark. I turned around and was able to rent these for $650-700. (Also west side) These were on market deals that I happened to be at the right place at the right time. I was purchasing all of these cash and was not refinancing because most of the lenders that I had in my network would not touch anything under 50k or wanted to fee me to death.

That said, in 2018 I sold a few 2/1s for the 32-35k mark which needed another 5-7k to some clients of mine who were able to put section 8 tenants in place and get closer to $750. (Also on the west side) 

Just before the end of 2018 a partner and I picked up a 2/1 for 16k that is in pretty rough condition. The tenants have been there for over 10 years and pay $550/month. We have not touched the place since closing last December. This place will easily need another 15k in renovations to get it up to decent shape. Again, only speaking from experience, but not sure where you are developing this criteria. It is rare even for a local to find 2/1s in great condition and be all in at 15-20k let alone a 3/1 all in at 30-35k. If you do happen to find these kinds of properties and run out of money please call me because I will buy as many as possible, or if you'd like I sell you the one I bought for 16k in December for 35k.

Perhaps reach out to @ClayManship or @EvanManship :) 

Cheers,

Zach 

Originally posted by @Zach Hoereth :
Originally posted by @Amil D.:
Originally posted by @Zach Hoereth:
Originally posted by @Amil D.:
Originally posted by @Zach Hoereth:

As many have already touched on... you may be stretched to find a duplex in an A or B class neighborhood that will realize great returns. If you turn to the C/C- neighborhoods you will obviously see higher returns. That in mind, greater returns come with greater headaches. (higher turn over, more capex, etc.) 

The biggest problem that I see with folks who transition into the C/C- duplexes is that they are often older properties that do not have separate utilities, garages, lack bedroom/bath count. Be aware of this when analyzing deals. Although multi-family is sexy there is a lot of buzz around it right now. Careful to not buy into the hype if the deal doesn't make sense!  

Perhaps take a look at Speedway, Beech Grove, or even Greenwood if you are looking for a SFR that is A/B. These are predominately blue collar working class neighborhoods that tenants will stay for long periods of time. You will pay a higher premium, but will not get a 1920s product that has failing major mechanicals and other heaps of problems.

If it don't cash flow... let the grass grow!! Onto the next one! 

Let me know if I can be of any help! 

Cheers,

Zach 

 Zach,

That's some very helpful advice! Can I ask where you personally own property and why you invested there?

I'm trying to learn more about the Indianapolis neighborhoods as well.... I'm actually coming down there in August to look at properties.

thanks

Amil

 Hey Amil,

Glad I could share some insight! I personally own mid size multi-family in tertiary markets about an hour outside of Indianapolis. In 2017, I was purchasing SFRs on the west side of Indianapolis in C/C- neighborhoods. I like the west side of Indy because I know it best from growing up around there. I was able to utilize my local market knowledge to get into deals that cash-flowed very well for me. I was purchasing 2/1s for buy & hold. As I noticed the market begin to jump up I sold everything and moved into multi-family. 

Keep in mind that locals often do not have the cost of PM and may have a network of direct contractors to perform maintenance & repair on their properties. Out of state investors usually have to lean on their PM to get these done hence the fees they pay therefore decreasing returns. My numbers will look a little different than yours because I am able to buy in my back yard if you will. 

Cheers,

Zach

Zach,

Excellent - That's very helpful! and it's actually great that you have  experience on the west side with the C's.

What areas might you recommend on the west side for Cs? For 3 beds, I'm looking for something that rents for $750 to $850 with an all-in purchase price of $30,000 to $35,000.

For 2 beds I'm looking for something that's closer to $15,000 to $20,000. If you check out my profile and has a link to my website which has all the details on exactly what I'm looking for.

maybe you know some lenders as well that would be willing to provide loans on $30k range properties?

maybe we can chat when I come down to Indy.

best

Amil

 Amil, how many current properties have you purchased with this criteria? Now I could be missing something because I have not been doing this for 50 years, so I can only speak from personal experience. I thought that I was picking up a home run 2/1 rent ready for 28k in 2017. (Rented for $650 & later sold for 48.5K) Later that year I purchased a few more 2/1s that needed a bit of cosmetic rehab that put me closer to the 35k mark. I turned around and was able to rent these for $650-700. (Also west side) These were on market deals that I happened to be at the right place at the right time. I was purchasing all of these cash and was not refinancing because most of the lenders that I had in my network would not touch anything under 50k or wanted to fee me to death.

That said, in 2018 I sold a few 2/1s for the 32-35k mark which needed another 5-7k to some clients of mine who were able to put section 8 tenants in place and get closer to $750. (Also on the west side) 

Just before the end of 2018 a partner and I picked up a 2/1 for 16k that is in pretty rough condition. The tenants have been there for over 10 years and pay $550/month. We have not touched the place since closing last December. This place will easily need another 15k in renovations to get it up to decent shape. Again, only speaking from experience, but not sure where you are developing this criteria. It is rare even for a local to find 2/1s in great condition and be all in at 15-20k let alone a 3/1 all in at 30-35k. If you do happen to find these kinds of properties and run out of money please call me because I will buy as many as possible, or if you'd like I sell you the one I bought for 16k in December for 35k.

Perhaps reach out to @ClayManship or @EvanManship :) 

Cheers,

Zach 

 Hey Zach,

Awesome information!!!

Your numbers are based off experience and my numbers are based off my pie in the sky spreadsheets. That would explain it. Lol. I am a new investor.

it's great to hear a locals experience so that I can adjust my criteria to be a little more realistic.  yes I want to get properties below market value and set my criteria as such, but not to an unrealistic degree.  so rather than just looking at off-market deals let's just check out the market values. And then I can figure out what type of discount is reasonable. What do you think is a reasonable market value for:

- for rent-ready 2/1 C properties 

- for rent-ready 3/1 C properties 

- for rent-ready 3/2 B minus Properties

thanks

Amil

Originally posted by @Amil D.:
Originally posted by @Zach Hoereth :
Originally posted by @Amil D.:
Originally posted by @Zach Hoereth:
Originally posted by @Amil D.:
Originally posted by @Zach Hoereth:

As many have already touched on... you may be stretched to find a duplex in an A or B class neighborhood that will realize great returns. If you turn to the C/C- neighborhoods you will obviously see higher returns. That in mind, greater returns come with greater headaches. (higher turn over, more capex, etc.) 

The biggest problem that I see with folks who transition into the C/C- duplexes is that they are often older properties that do not have separate utilities, garages, lack bedroom/bath count. Be aware of this when analyzing deals. Although multi-family is sexy there is a lot of buzz around it right now. Careful to not buy into the hype if the deal doesn't make sense!  

Perhaps take a look at Speedway, Beech Grove, or even Greenwood if you are looking for a SFR that is A/B. These are predominately blue collar working class neighborhoods that tenants will stay for long periods of time. You will pay a higher premium, but will not get a 1920s product that has failing major mechanicals and other heaps of problems.

If it don't cash flow... let the grass grow!! Onto the next one! 

Let me know if I can be of any help! 

Cheers,

Zach 

 Zach,

That's some very helpful advice! Can I ask where you personally own property and why you invested there?

I'm trying to learn more about the Indianapolis neighborhoods as well.... I'm actually coming down there in August to look at properties.

thanks

Amil

 Hey Amil,

Glad I could share some insight! I personally own mid size multi-family in tertiary markets about an hour outside of Indianapolis. In 2017, I was purchasing SFRs on the west side of Indianapolis in C/C- neighborhoods. I like the west side of Indy because I know it best from growing up around there. I was able to utilize my local market knowledge to get into deals that cash-flowed very well for me. I was purchasing 2/1s for buy & hold. As I noticed the market begin to jump up I sold everything and moved into multi-family. 

Keep in mind that locals often do not have the cost of PM and may have a network of direct contractors to perform maintenance & repair on their properties. Out of state investors usually have to lean on their PM to get these done hence the fees they pay therefore decreasing returns. My numbers will look a little different than yours because I am able to buy in my back yard if you will. 

Cheers,

Zach

Zach,

Excellent - That's very helpful! and it's actually great that you have  experience on the west side with the C's.

What areas might you recommend on the west side for Cs? For 3 beds, I'm looking for something that rents for $750 to $850 with an all-in purchase price of $30,000 to $35,000.

For 2 beds I'm looking for something that's closer to $15,000 to $20,000. If you check out my profile and has a link to my website which has all the details on exactly what I'm looking for.

maybe you know some lenders as well that would be willing to provide loans on $30k range properties?

maybe we can chat when I come down to Indy.

best

Amil

 Amil, how many current properties have you purchased with this criteria? Now I could be missing something because I have not been doing this for 50 years, so I can only speak from personal experience. I thought that I was picking up a home run 2/1 rent ready for 28k in 2017. (Rented for $650 & later sold for 48.5K) Later that year I purchased a few more 2/1s that needed a bit of cosmetic rehab that put me closer to the 35k mark. I turned around and was able to rent these for $650-700. (Also west side) These were on market deals that I happened to be at the right place at the right time. I was purchasing all of these cash and was not refinancing because most of the lenders that I had in my network would not touch anything under 50k or wanted to fee me to death.

That said, in 2018 I sold a few 2/1s for the 32-35k mark which needed another 5-7k to some clients of mine who were able to put section 8 tenants in place and get closer to $750. (Also on the west side) 

Just before the end of 2018 a partner and I picked up a 2/1 for 16k that is in pretty rough condition. The tenants have been there for over 10 years and pay $550/month. We have not touched the place since closing last December. This place will easily need another 15k in renovations to get it up to decent shape. Again, only speaking from experience, but not sure where you are developing this criteria. It is rare even for a local to find 2/1s in great condition and be all in at 15-20k let alone a 3/1 all in at 30-35k. If you do happen to find these kinds of properties and run out of money please call me because I will buy as many as possible, or if you'd like I sell you the one I bought for 16k in December for 35k.

Perhaps reach out to @ClayManship or @EvanManship :) 

Cheers,

Zach 

 Hey Zach,

Awesome information!!!

Your numbers are based off experience and my numbers are based off my pie in the sky spreadsheets. That would explain it. Lol. I am a new investor.

it's great to hear a locals experience so that I can adjust my criteria to be a little more realistic.  yes I want to get properties below market value and set my criteria as such, but not to an unrealistic degree.  so rather than just looking at off-market deals let's just check out the market values. And then I can figure out what type of discount is reasonable. What do you think is a reasonable market value for:

- for rent-ready 2/1 C properties 

- for rent-ready 3/1 C properties 

- for rent-ready 3/2 B minus Properties

thanks

Amil

When you say the lenders you knew would not touch anything under $50,000, are you talking about the appraised value of the property or the loan amount?

I was recently talking with Brandy Schroeder of Centier bank, a portfolio lender (https://www.centier.com/person... ) 

They do loans on properties that are worth $30,000 at 4.5% interest for SFRs. Is this one of the banks that will "fee you to death"?

Thanks

Amil

@Joseph Torres Indianapolis is a great cash flow market. We've been active there for nearly 10 years. However, it is not a good market for MF in my opinion. With rare exceptions, most of the MF are in old, rough areas. Looking for MF in A and B class areas is like looking for unicorns. You can occasionally find a B class in some markets, but you're not going to find them in A class neighborhoods, otherwise, they wouldn't be A class neighborhoods. 

@Mike D'Arrigo Hello Mike, I’ve been looking at a potential MF in Center City, Marion, IN. I’m going to reach out to locals agents and PMs in the area to better understand that specific area but I just wanted to get your opinion of the area and outlook in that market considering your experience. Thank you very much for your time.