Estimating Expenses on SFH BRRR Deals
Going through and underwriting a couple of SFH BRRR opportunities I've came across in the Indianapolis MSA, specifically Marion County.
I'm not local to the area, and am not familiar with operating expenses for these types of projects. I'm more used to underwriting MF deals and extrapolating existing T12 data, so this is a bit different for me.
All the properties are 3 beds, ranging from 1000 to 1400 sqft. They are in Fountain Square, Crooked Creek, and Forest Manor/Audubon Gardens.
I normally see expense ratios sitting around 40-50% for SFH's, is this accurate for this area?
With that being said, how is anyone making BRRRs work in today's climate (without heinously lowballing)? The deals I underwrite have been cash flowing right up until I put debt service on them, even with taking a break even amount in a refi.
Would love to get some inputs, and to connect with pros in the area.
Thanks!