Can someone help me analyze a deal in Indy?

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Can someone help me analyze a deal in Indy?

Monique Pett
Rental Property Investor · Denver · Member since 2020 · 80 posts · 33 votes

I'm looking for some advice on the indy market.. 

I have a deal but not sure if I'm analyzing properly. If you are familiar with the market can you pm me? Or comment here what you look for with the BRRRR method?

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Jaron WallingPro Member
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
4y

@Monique Pett I'm a local investor. Give us more details and we can answer your questions. 

1. Neighborhood 2. Price 3. Rehab budget 4. Bedroom count 5. Rent 

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  • Michael Margarella
    Investor · New York City · Member since 2020 · 164 posts · 75 votes
    4y

    @Nick Giulioni has some great blog posts on this, and is generally a great resource.

    I’m also happy to discuss if you’d like to PM me. 

    0Reply
  • Monique Pett
    OP
    Rental Property Investor · Denver · Member since 2020 · 80 posts · 33 votes
    4y

    @Michael Margarella I will do that. I appreciate that. 

    0Reply
  • Steve Tipps
    Rental Property Investor · Indianapolis, IN · Member since 2021 · 9 posts · 0 votes
    4y

    I live here in Indy if you need any insight on areas/neighborhoods. 

    0Reply
  • Monique Pett
    OP
    Rental Property Investor · Denver · Member since 2020 · 80 posts · 33 votes
    4y

    @Steve Tipps

    do you invest in indy?

    0Reply
  • Steve Tipps
    Rental Property Investor · Indianapolis, IN · Member since 2021 · 9 posts · 0 votes
    4y

    @Monique Pett not currently, but I will be in the future. I’m happy to answer any questions about neighborhoods, schools, etc. 

    0Reply
  • Jaron WallingPro Member
    Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
    4y

    @Monique Pett I'm a local investor. Give us more details and we can answer your questions. 

    1. Neighborhood 2. Price 3. Rehab budget 4. Bedroom count 5. Rent 

    1Reply
  • Monique Pett
    OP
    Rental Property Investor · Denver · Member since 2020 · 80 posts · 33 votes
    4y

    @Jaron Walling 

    1. Haughville right off of belmont. 2. $70ishk 3. 10-15k. 4. 3:1 5. $900-$1,000. 

    I'm seeing ARV around $122k. Which doesn't leave a whole lot of spread. Wondering what you look for when you BRRRR.

    1Reply
  • Jaron WallingPro Member
    Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
    4y

    @Monique Pett From a location stand point it's pretty good! Only concern you'll have is the rehab budget and maybe tenant selection. $10-15K goes really quick I'm sure you know, and finding good tenants takes time. The neighborhood is still rough. It's getting better though and the first big apartment was completed a year ago. It's called Riverview Apartments. Really jump started investing in neighborhood. 

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  • Monique Pett
    OP
    Rental Property Investor · Denver · Member since 2020 · 80 posts · 33 votes
    4y

    @Jaron Walling my only issue is I'm using OPM. So I need to refi to pay my investor back. So If I'm all in at $84k and I only get $84k out, is that a good deal? I know the area is up and coming, but in 6 months is that enough time to make money on the deal? 

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  • Monique Pett
    OP
    Rental Property Investor · Denver · Member since 2020 · 80 posts · 33 votes
    4y

    @Sedric Smith PM me

    0Reply
  • Monique Pett
    OP
    Rental Property Investor · Denver · Member since 2020 · 80 posts · 33 votes
    4y

    @Jaron Walling - can I send you some pics?

    1Reply
  • Sedric Smith
    Real Estate Broker · Member since 2020 · 9 posts · 0 votes
    4y

    @Monique Pett ok

    0Reply
  • Sedric Smith
    Real Estate Broker · Member since 2020 · 9 posts · 0 votes
    4y

    @Monique Pett You might have to send me a message it won't let me for some reason.

    0Reply
  • Dominic Kosteris
    Member since 2021 · 58 posts · 37 votes
    4y
    Originally posted by @Sedric Smith:

    Hey any cash buyers in Thorntown in? West Virginia? Gary in ? I have deals!

    Inbox me your contact info. I do not invest in Gary, but I know some who do.

    0Reply
  • Dominic Kosteris
    Member since 2021 · 58 posts · 37 votes
    4y

    If you can get out what you put in, that's a successful BRRRR.

    1Reply
  • Sedric Smith
    Real Estate Broker · Member since 2020 · 9 posts · 0 votes
    4y

    @Dominic Kosteris currently having difficulty with my inbox I didn't notice till now

    0Reply
  • Jaron WallingPro Member
    Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
    4y
    Originally posted by @Monique Pett:

    @Jaron Walling my only issue is I'm using OPM. So I need to refi to pay my investor back. So If I'm all in at $84k and I only get $84k out, is that a good deal? I know the area is up and coming, but in 6 months is that enough time to make money on the deal? 

    Are you just flipping the property? If you're all in at $84k and it rents for $900 it could be a cash-flow machine. 

    You could flip and run though. That's what everyone else seems to be doing. 

    1Reply
  • Deonte Brown
    Real Estate Agent · Member since 2018 · 53 posts · 24 votes
    4y

    Hi Monique! I am an Indianapolis native, investor, and Realtor. I am well versed in the market and would be happy to help.

    1Reply
  • Joel Fischer
    Henderson, NV · Member since 2016 · 84 posts · 21 votes
    4y

    @Steve Tipps Hi Steve. I’m looking at deals in some of the Indy Suburbs. Any thoughts about Muncie, Anderson or Thornton?

    0Reply
  • Tyler LingleBusiness Member
    Real Estate Consultant · Indianapolis, IN · Member since 2021 · 440 posts · 292 votes
    4y

    Hi there. I live in urban Indy, I'm an agent in central Indy, and I have investment properties in Indy. I'd love to be a resource!

    [email protected]
    Roots Realty Co. 564 Reviews
    WebsiteView Page
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  • Nick GiulioniPro Member
    Rental Property Investor · Carmel, IN · Member since 2016 · 1k+ posts · 615 votes
    4y

    Thanks for mentioning me @Michael Margarella. I would also love to help and share my thoughts and experiences with you @Monique Pett . Chat you more if you're interested.

    0Reply
  • Steve Tipps
    Rental Property Investor · Indianapolis, IN · Member since 2021 · 9 posts · 0 votes
    4y

    @Joel Fischer Hey Joel! If you're looking for student housing rentals, muncie is a great place. Quite a few homes around Ball State University that would be perfect for that, but they'll typically need rehab work. Traditionally, Muncie is a bit too far from Indy to be a bedroom community. 

    Anderson is quite a depressed market, though it's making it's way back. This was a huge manufacturing hub for GM decades ago. If you're shooting for Anderson, I'd vote the south end or west end. West end could also include Edgewood. 

    I'm not familiar with Thornton, but I do know Thorntown, on the NW side of Indy. That could be an up and coming community for those that travel into Indy or up to Lafayette. 

    @Nick Giulioni or @Tyler Lingle. Do you have any other insight for Joel?

    0Reply
  • Jaron WallingPro Member
    Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
    4y

    @Joel Fischer @Steve Tipps Muncie is a smaller college town. I lived there for 5 years and know the city. Student rentals are great if that's your niche. Properties within walking distance to the campus are competitive. Anderson is smaller than Muncie with lower prices. You can find cash-flow I'm sure but not much else. As a local it's boring and doesn't interest me but every investor starts somewhere. 

    Thorntown? Like in the middle of nowhere south of Lafayette? Can't tell you anything about rural investing. 

    0Reply
  • Jason L.
    Rental Property Investor · Delray Beach, FL · Member since 2014 · 224 posts · 169 votes
    4y
    Originally posted by @Monique Pett:

    @Jaron Walling 

    1. Haughville right off of belmont. 2. $70ishk 3. 10-15k. 4. 3:1 5. $900-$1,000. 

    I'm seeing ARV around $122k. Which doesn't leave a whole lot of spread. Wondering what you look for when you BRRRR.

    Question you might need to ask yourself in advance of this (or any other deal): what happens if your numbers are wrong? Either it appraises low or your reno budget goes over (as it often will). 

    It sounds like your plan is use a hard money loan to buy this house with the hopes of refinancing, quickly paying off the hml, and then you own the house as a rental without any of your own cash invested. This type of deal might not be feasible, especially in an unprecedented sellers market. That's not to say that the numbers you laid out don't sound really appealing, but it just depends on your expectation here. You might end up needing to leave $5-10k in the deal after the refinance, which likely still works out to a great cash on cash return but might require another 2-4 years to return to net $0. You might need to lay out where that liquidity would come from in the event your refi doesn't cover your hml in full.

    1Reply
  • Monique Pett
    OP
    Rental Property Investor · Denver · Member since 2020 · 80 posts · 33 votes
    4y

    Thanks @Jason L. It was actually my firends money not a HML. But it could be as well. Thanks for your comment. I let this deal go.

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