10 home package in Gary, Indiana
Hi everyone,
Ok, so I was doing some Cruzin4Cash looking for vacant homes and find the owner to see about their situation and if they are motivated to the sell their home. I got a number to a property owner of a home in Merrillville, IN and found out from the owner that the home I found vacant they are trying to renovate it and will be moving into it. So I asked the lady if she had any other properties she'd be willing to sell. She told me she has a lot of properties but 95% of them are in Gary, Indiana.
I from here felt this is great because now I have a lucrative opportunity on my hands now. She then proceeds to tell me she is willing to sell 10 of her properties in a neighborhood on 35th pl. on the east side of Gary, Indiana. She said that 8 of the 10 properties have tenants in them and they are all on the same block. These properties are close to the Hobart, IN area but still... they are in Gary, Indiana and I'm not sure if anyone would really be trying to buy out there but I'm new so what do I really know.
The 10 properties are a mix of 2 bedrooms and 3 bedroom homes in relatively good condition. They are all rent ready and the lady have done a number of updates to the homes. I went by the homes and talked to some of the tenants and they tell me that the neighborhood is quiet with not much of any drama going on over there. I start to do some research on the homes to see how much in taxes they are pulling and see that on average for the homes they are around 70 bucks a month per property in taxes.She tells me she is renting the homes for about 600 to 650 per month so I felt that isn't too bad for Gary, Indiana.
So the reason I am on here with this situation is because I'm not sure what to offer her on the homes. She said to me she is looking to sell all 10 homes for 250k or in other words, 25k a home. All of the homes don't need much of anything done to them except maybe some retouch paint, and new carpeting. I wasn't sure with the market value of the homes from the tax assessors site of them being worth 35k average for each was worth it. She told me that with her monthly cash flow from all the homes is around 4,900 excluding taxes and insurance.
It doesn't sound bad but for me to wholesale these homes and make a profit, I don't see how to do this. Is Gary, Indiana with what I have given so far, a good place to invest 250k for 10 homes that are 8 2bed and 2 3bed for a monthly cash flow of 4,900?
Im looking in that area but this is too big of a deal for me seiing i just made a cash purchase last month. Id like more info though while i think of possibilities.
Thanks and keep me informed on how things are going.
That's way too high for Gary. Even though they are rented, that price is even over retail.
I am doing a deal in Gary for 7 properties. All rented for $4,900/month and purchase price is $45,000.
Have many of these properties have you seen from the inside? How much work will they need?
Hi Chavis,
Congratulations on finding this type of deal. Even if it doesn't work out it still shows you know how to find sellers and deals and I'm sure you'll learn from the experience. $250k might be a little high, especially since that doesn't include what you are planning to make from the deal.
Please PM me as I work with someone who does quite a bit of investing in/around the Gary area.
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forget about the 2% rule Sharad is hitting the 10% rule...
Good to hear from you. It's part of a package deal that I am buying. However, I am not keeping the ones in Gary. I am passing that deal onto a friend who was looking in the area, but it helps me negotiate better pricing on the whole package.
I appreciate a lot for the responses everyone. I'm kinda like, wanting to make something happen with this because the homes are nice but I too may be trying for something that isn't realistic .Although the homes are literally rent ready and I've gone into 3 of them and seen that literally, a buyer could actually not put much of anything into the homes except for some retouch paint and maybe new carpeting. Here is the pics of some of the homes:
I might be able to get her to do lower to include my fee but in the end I do want to make her happy as she has more properties she is trying to liquidate and didn't have the idea of doing any of this until I came along. She is a older woman and her husband is a pastor of a church. With no property management handling all her homes, I feel she kind of needs to let go of the properties with her trying to commit more to "God".
I'm not trying to market these now as I don't have them under contract yet but in the end, any suggestions on how to convince her to go smaller on her price for the homes... or perhaps I do each home one by one maybe.
Sharad, great advice you gave me when we talked earlier! I wish she could see the light and do what you told me would be wise for a quicker sale. I can only dream... but would be nice to wholesale this and make everyone happy.
@Timothy Riley I am selling this one in Gary for 11k. Not in bad shape.
25k a home isn't worth it in Gary. NOT EVEN CLOSE. It isn't a deal at that price point.
@Sharad M. - there was another thread i just commented on where a person asked you Gary or Lake Station. You said you weren't doing Gary at all, but here you say you are doing 7 homes there. Can you clarify? I am still relatively new to BP, so forgive me if I am not sure how to tell you which post it was.
I do commend you @Chavis Atkins for getting the start on it. I haven't seen good results on the east side of Gary. The values, rents and tenant base over there I haven't found very satisfactory in my view.
@STEVE
@Steve Stern thanks to Dale bringing this thread back to live I'm just seeing the home you tagged me on. Sorry for the late reply. Connect with me and let me know what you have available.
Here is the link to the thread, of course a couple months after this one, but you state you don't buy in Gary in this thread: http://www.biggerpockets.com/forums/86/topics/1363...
Did the 7 properties go bad for you?
That prop sold several months ago. We now list all our properties with agents on the MLS.
Thnku
The package of properties from Chavis was the last ones I looked at in Gary, but I don't buy in Gary anymore. I never bought those properties from Chavis and they are still available for sale as of 2 days ago.
I was under contract to buy those properties, but during the due diligence a lot of inconsistencies came up and I decided not to move forward.
Yeah there were inconsistencies. But surprisingly enough this thread has brought to life a few people who are interested in buying in Gary, IN and want to know more about them homes I had. Question I'll have soon is for the woman behind the homes, is she still looking to sell the homes.
Originally posted by @Timothy Riley:
@Steve Stern thanks to Dale bringing this thread back to live I'm just seeing the home you tagged me on. Sorry for the late reply. Connect with me and let me know what you have available.
I have a property in Gary, IN and I am not sure whether I want to sell it or not. What is the market like in Gary, near Merriville? Should I fix it up and sell it, hold it? Would you be willing to partner with me and we figure out the best way for us to both capitalize off of this???
your best bet is to contact a local agent to obtain market date ie "true" AS IS/ARV and est rehab cost.
Good luck