New to REI & Indy - Looking to build a team, let's connect!
Rental Property Investor · New York, NY · Member since 2016 · 15 posts · 6 votes
New to REI & Indy - Looking to build a team, let's connect!
Most Popular Reply
I'm sure you know there's a lot of Indy based property research you can do remotely from anywhere - I'll list some resources below. I'm local now, but started OOS, walked a lot of properties using Google street view, Zillow/RedFin/Realtor.com, and used the Marion county property cards to see what the city/county thinks of properties.
The Google map for Indianapolis REI is a must use.
Also, when you've identified the properties you want, use the citizen access portal (no account needed to use the Search function) to check the 'Enforcement' tab for outstanding issues the city/county has with the property, AND to see what issues have come up in the past.
Use a crime map tool if that's something you like - I do this last of all.
I also look at renter vs owner ratios in neighborhoods with an eye toward investing in neighborhoods with higher OWNER ratios.
Do you know your target property? Mine is a 3br 1+ba bought for ~$95 that's rentable with ~$5K-to-$10K renovation budget for $1K/month. Whether SFH or 2-to-4 MFH doesn't matter as much as the bottom line. Since I'm now local, I want my properties to be near my home, and other properties. Find a good PM company: even if you plan to PM for yourself, pick a PM company as an 'exit strategy' in case you no longer want to DIY the PM work. Ask 10 people, and you'll get 10 different opinions on Indy PM's to use, streets/neighborhoods to invest in, etc. You MUST KNOW WHAT *YOU* ARE COMFORTABLE WORKING WITH before you really dive in. For myself, it was a 'deal that got away' - Dual duplex's on one property that would have have cost $80/door, and generated $1.1K monthly income - that helped set the "bar" for what I look for in a deal. Take advice with a grain of salt, and ask "what are THEY getting out of this"? Some folks are paying it forward, while others are just trying to line their pockets a little more. Be aware, and work with people who are like minded.
May you find your way as well. All the best, and Welcome to Indy!
Resources mentioned above:
1. Sterling White's: "Guide to Grading Indianapolis Neighborhoods" https://www.biggerpockets.com/blog/guide-grading-indianapolis-neighborhoods
2. Citizen's Access portal: click the 'Enforcement' tab, and enter the address of the property you're researching to see if there are any warrants, or nuisance reports (tall grass, drugs, trash, etc) https://accela9ca.indy.gov/citizenaccess/
3. 2010 Census dot map of Renters vs Owners. Use 'Shift-click' to zoom out, scroll around, and 'Click' to zoom in. http://ryantm.io/population/
4. Tax Assessor Property Cards - search by address to see the purchase history on target properties. http://maps.indy.gov/AssessorPropertyCards/
20 Replies
- 6yFloyd FajardoPro MemberInvestor · Member since 2020 · 25 posts · 13 votes
Welcome and good luck! I'm new too but from what I've seen and heard, very slow appreciation and great cash flow if bought correct.
I'm sure you know there's a lot of Indy based property research you can do remotely from anywhere - I'll list some resources below. I'm local now, but started OOS, walked a lot of properties using Google street view, Zillow/RedFin/Realtor.com, and used the Marion county property cards to see what the city/county thinks of properties.
The Google map for Indianapolis REI is a must use.
Also, when you've identified the properties you want, use the citizen access portal (no account needed to use the Search function) to check the 'Enforcement' tab for outstanding issues the city/county has with the property, AND to see what issues have come up in the past.
Use a crime map tool if that's something you like - I do this last of all.
I also look at renter vs owner ratios in neighborhoods with an eye toward investing in neighborhoods with higher OWNER ratios.
Do you know your target property? Mine is a 3br 1+ba bought for ~$95 that's rentable with ~$5K-to-$10K renovation budget for $1K/month. Whether SFH or 2-to-4 MFH doesn't matter as much as the bottom line. Since I'm now local, I want my properties to be near my home, and other properties. Find a good PM company: even if you plan to PM for yourself, pick a PM company as an 'exit strategy' in case you no longer want to DIY the PM work. Ask 10 people, and you'll get 10 different opinions on Indy PM's to use, streets/neighborhoods to invest in, etc. You MUST KNOW WHAT *YOU* ARE COMFORTABLE WORKING WITH before you really dive in. For myself, it was a 'deal that got away' - Dual duplex's on one property that would have have cost $80/door, and generated $1.1K monthly income - that helped set the "bar" for what I look for in a deal. Take advice with a grain of salt, and ask "what are THEY getting out of this"? Some folks are paying it forward, while others are just trying to line their pockets a little more. Be aware, and work with people who are like minded.
May you find your way as well. All the best, and Welcome to Indy!
Resources mentioned above:
1. Sterling White's: "Guide to Grading Indianapolis Neighborhoods" https://www.biggerpockets.com/blog/guide-grading-indianapolis-neighborhoods2. Citizen's Access portal: click the 'Enforcement' tab, and enter the address of the property you're researching to see if there are any warrants, or nuisance reports (tall grass, drugs, trash, etc) https://accela9ca.indy.gov/citizenaccess/
3. 2010 Census dot map of Renters vs Owners. Use 'Shift-click' to zoom out, scroll around, and 'Click' to zoom in. http://ryantm.io/population/
4. Tax Assessor Property Cards - search by address to see the purchase history on target properties. http://maps.indy.gov/AssessorPropertyCards/
- CA · Member since 2020 · 27 posts · 13 votes6y
@Bruce Lee great advice and valuable info! I'm also considering Indy as a market to invest in. Actually, one of a few as I haven't quite picked one. I guess trying to establish a team first and maybe that'll help dictate which market I finally land on. I do notice how some folks are definitely helping to just line their pockets a little but have also come across others who are genuinely trying to pay it forward (I think). Did you end up building your team first before picking Indy to invest out of state in? Anything you would have done differently in hindsight? Thanks!
Best of luck on your REI journey @Stanislav Perevozchikov!
I picked Indy, THEN picked my team. I did as much tele-house hunting as I could, then lined up a weekend trip to "interview" realtors. Got 3 realtor referrals from BP (here), and set appointments to see them in-Indy. I picked out three (3x) addresses for each realtor - properties I thought looked interesting as picked from the MLS/Zillow listings. With one trick: 1 house I'd looked at A LOT on-line, I assigned to ALL THREE realtors, so each could show it to me, and I would note the way they showed it, their feedback, and style. I also asked them to show me other properties THEY thought might be in my 'wheelhouse' based on the one's I gave them.
Results: First realtor was on his phone most of the time, and was more interested in getting a sale than in the needs of a RE investor / property manager. Second realtor was more investor-centric - giving feedback on what new windows would cost, and an average of what reno costs would be overall with contractors and whether his team could do the work. His company also did Property Management work for $X/per-door (which STILL sounds good to me). Third realtor didn't register much as he was disinterested in showing me the houses, and said he would have to go to another appointment after the 'common' house. He didn't try to setup another time later, or anything that seemed like someone who wanted to help an investor find a RE 'match'. From the 'common' house, I got much better feedback from Realtor2 who showed the attic space in the house that I HAD NOT NOTICED. There was potentially an entire other FLOOR of livable space that the two other realtors (and I) completely MISSED. In the end, I chose Realtor #2, got references from some of his other investor clients, and ended up buying my 1st deal through him - a property HE brought to the table, and has turned out to be one of my best duplexes.
Realtor reference: Cory Robinson @ City Place Indy. https://www.biggerpockets.com/...
- CA · Member since 2020 · 27 posts · 13 votes6y
@Bruce Lee thank for walking me through your process! Glad to hear it worked out with Cory! If I narrow it down to Indy, I’ll definitely reach out to Cory and mention you referred him. Appreciate you sharing your knowledge.
- Rental Property Investor · New York, NY · Member since 2016 · 15 posts · 6 votes6y
@Bruce Lee That is a wealth of information, thank you for sharing! When you first got started in Indy, did you have any other REI experience elsewhere? How hard was it doing all of this OOS? My current train of thought is like this, contact a few agents and PMs, then fly out to meet them and select one for each, then start shopping around for my first property. How long did it take you from initial contact to making your first purchase?
Another thing that I'm concerned about is managing long-distance rehab projects. I understand I can offload the majority (if not all) of the monitoring to my PM since it'd be in their best interest as well to make sure everything goes smooth and the property has a tenant as soon as possible. How time-consuming is it starting out/how much do I need to be in the area myself?
Also, my target property is somewhat similar to yours as well. Maybe even a 2+1 since the schools are not that great in Indianapolis and my ideal tenants would be a young couple/with a small child. Target price of around 50-80k with rehab 10-30k, similar rent of 1-1.2k depending on the area. I think this is doable.
Regarding PMs, did you have one/run the first property you wanted to purchase by them to get a feel for what the potential issues you might face, how much rehab would cost and how much rent you could collect?
@Brad Peralta thanks, best of luck to you too!
- 6yNick GiulioniPro MemberRental Property Investor · Carmel, IN · Member since 2016 · 1k+ posts · 615 votes
Hey - glad to see you taking action! Hit me up if yo want to connect.
@Stanislav Perevozchikov... you've asked some good questions. But questions that are probably BEYOND the scope of this post. But I've answered these questions a number of times on the various FIRE / Investing / Real Estate websites I read. Because of this, I'm in the process of collecting that info, and publishing it as a Blog. Right here on Bigger Pockets.
I promise I'll answer, but today I need to finish a project. Ping me via messages if I don't keep at it.
Just started: "Landlords On FIRE" https://www.biggerpockets.com/...
- Rental Property Investor · New York, NY · Member since 2016 · 15 posts · 6 votes6y
@Bruce Lee will be closely following your blog, thanks!
- 6yKerry Noble JrPro MemberInvestor · Indianapolis, IN · Member since 2018 · 2k+ posts · 1k+ votes
lets connect.....see if i can add value to you here in Indy
I wanted to add one to this response here. I've started the blog - it's coming along nicely now. But your question about how did I get things started Out Of State (i.e. "Long Distance Real Estate Investing") is an interesting one. As mentioned, my realtor #Cory Robinson found a 2Br / 1Bath duplex on Riley Ave - about 6 blocks from where I would eventually call HOME here in Indy.
The deal was for sale on the MLS in April 2018, and wasn't having much interest from buyers at $85K. Long-term tenants were already living in both units - a 6 year tenant in one side, and a 3 year tenant in the other - tenants who are still in the units TODAY, but now under Better Managed Properties LLC leases. Both units had lots of "deferred maintenance" - 10 year old carpet, no repainting for at least 10 years, stick-on tile-laminate-flooring in both kitchens were peeling and looked awful (and still do). There was some exterior cleanup needed - flashing around the chimney, clean-out of the gutters, and overgrown shrub removal - that took a weekend to finish up. I'm planning to do the kitchen floor work, and painting on the flip if either of these tenants leaves. The tenants do not think of me as the 'owner', and I always represent myself as "A Property Manager" with the faceless corporation Better Managed Properties LLC. So far they're happy with me as Property Manager, call whenever there's an issue (it's happened 3 times in 2 years so far) and mostly pay the rent on-time. When not on-time, they pay the late fees as assessed.
I closed the purchase remotely, signing documents electronically, and got the keys in-the-mail. The next time I returned to Indy, the weekend was spent cleaning the yard, and doing chimney flashing and gutter cleaning. Naturally the cost for the cleaning trip was deductible off my 2018 income taxes as a business expense.I had already decided I was moving to Indianapolis, so I didn't hire a Property Manager - choosing instead to DIY the property management work. I enjoy home improvement / rehab work, so I pulled out my tool belt, and went to work fixing things.
New skills learned: re-keying doorknob locksets. In the time after purchasing the first TURN-KEY duplex, I used YouTube videos (like this one) and other on-line resources to learn how to re-key locks. It's easy enough to purchase a lock at the home center, and for $5 have them re-key it to your existing key, but with a little on-line learning now I can do it myself. A rekeying kit is a must have (IMHO) for a property manager. I purchased THIS ONE - it includes pins, springs, a pickle-fork, and key-guage for kwikset locks.
When first purchased, each unit had FIVE (5x) keys per unit! One of the tenants only had 1 key - the key to the front door, so I used that key as the pattern to re-key ALL the other locks to match the front-door key. I repaired a malfunctioning garage door opener in one unit, ordered a replacement key-fob online, and gave it to the renter.
If I had decided to have a PM company do the work, they would have come up with new leases, done the maintenance work for me, etc. based on what I wanted to have done. In the 2 years I've owned the properties, the only remodel work done was to install laminate flooring in high traffic areas - such as the living room and hallways of both units. New carpet was installed in the bedroom for one unit, the other tenant wanted laminate flooring, so I obliged. I found a great deal on laminate flooring at the local Ollie's Bargain Outlet, used a miter saw to cut pieces to fit, and click them into place. Finish work was installing white quarter-round molding around the baseboards. I spent $600 for laminate flooring for BOTH sides, and four 8-hour days on each. I paid Home Depot carpet layers to install 1 bedroom of carpet - I let the tenant pick the carpet from a selection of samples, and the tenant now thinks of it as HIS carpet. So far, it has been well taken care of.- Investor · AZ · Member since 2019 · 57 posts · 22 votes6y
@Stanislav Perevozchikov best of luck to you! I’m seeking investments in the Indy area as well. PM me if you want to connect.
- Rental Property Investor · Indianapolis · Member since 2020 · 4 posts · 7 votes6y
Born and raised in Indy. Excellent place to invest.
Happy to help in any way I can.
- 6yMike D'ArrigoPro MemberTurn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
@Stanislav Perevozchikov you're smart to be looking at Indianapolis for all the reasons that you've mentioned. You mentioned future appreciation and although the Midwest isn't know for high appreciation, Indianapolis has been the exception to that rule for several rules as this 5 year chart shows. In 2020, median prices are up over 10% YOY.
- Rental Property Investor · New York, NY · Member since 2016 · 15 posts · 6 votes6y
Thanks everyone for the advise, suggestions, and reaching out! I still haven't pulled the trigger in Indy yet as I haven't been able to find any reasonable deals that bring good CoC returns (12%+). It's a hot market!
- Specialist · Indianapolis, IN · Member since 2020 · 29 posts · 9 votes6y
@Stanislav Perevozchikov I'm an Indianapolis local. There is definitely a lot of opportunity here! I'm getting into wholesaling now to help fund future buy and hold investments in this area. I know the area well and would love to share some insight. I'm free to connect whenever just send me a message here on BP!
- Investor · Pasadena, CA · Member since 2019 · 42 posts · 16 votes6y
@Stanislav Perevozchikov
Welcome to Indy
I used to live in NYC, now in LA and investing Out of state like you
12% CoC sounds good but in Indy can come with a lot of risk in some C/D area.
Just be clear on your strategy with yourself and act on it
The first deal doesn’t have to be home run, even if you go to base 1 or base 2, it’s still pretty good and now you are in the game.
I'm at my 5th SFH in Indy now, and It gets easier each time as your team gets better
Good luck and if you have questions I’m here to help
Graz
- Member since 2020 · 8 posts · 2 votes6y
I’m new to Indy too . I appreciate it if you help me decide where I’m Indy would be a good start to invest. Safe areas and profitable if I want to fix and flip and resale .
any specific counties or zip codes ?
thanks in advance. - Specialist · Indianapolis, IN · Member since 2020 · 29 posts · 9 votes6y
@Mona Mohamed the best place to start is Sterling White's post The Investor's Guide to Grading Neighborhoods in Indianapolis. I'd like it, but I can't seem to do that from my phone. Just do a search for that title in BiggerPockets and it should show up.
Indianapolis and the surrounding towns covers a large area, and there's a lot of opportunity. You probably need to get specific on the price range you're looking for and types of renter's (families, young professionals, college students, etc.) From there you can really start to narrow the neighborhoods that actually make sense.
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