Indianapolis, Need help analyzing potential first buy and hold
Okay Indy Investors! I have my eye on a 3bed /2.5 on the east side of Indy. Property is located in the Warren Woods Subdivision, Just Southeast of German Church Rd & 38th Street. Would love your opinions.
Property looks to be move in ready. Not rehabbed, but nothing looks terrible just a bit dated. Located in Warren Township.
Built in 1994, Bi-Level with 1 car garage. 1364sqft and has a deck off the back, and a storage shed.
My Target price: $40,000 - I'll put 20% down so $32K mortgage
Fixes- might need some paint in a few areas. Washer/Dryer, I might add a small Island to the small Kitchen to provide better function. So I would say $1000
Taxes: $1700 @ 2% assessment.
PITI: $380 @ 6% - estimated, I've not gotten my lending sorted out yet.
Maintenance - $100
Rent: $900. Rentometer says $950-1050 but I'd want to be conservative to get it rented ASAP.
Cash Flow: $420
My immediate Concerns is that its in a 90's Subdivision and those typically have lots of rentals, i'm not sure its wise to buy a property with lots of rental competition.
Does this area have enough rental demand to support $900-1000 rent with short vacancy? Or will I be waiting months to get it rented out?