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?
I am not familiar with the rental market in Indiana, but the potential to recoup your down payment in 19 months is attractive to me. That means you can buy another similar property more and more quickly. Good luck!
I know this area very well. We've sold a lot of turn key properties in this area. I'm not sure where your $40K target price is coming from but nothing that is almost move in ready in that area is priced anywhere close to that. Renovated properties in that area are selling for $90K plus. If you can really buy something in the area for $40K there is a reason for it. If it's truly move in ready or close to it, you should be writing an offer instead of posting about it. That's a 2.25 rent ratio. That's a no brainer if it's in the condition you say it's in. This is a good solid neighborhood. Shoot me the address if you want and I'll be happy to take a look at it further.
@Justin Owens As @Mike D'Arrigo said above, if those numbers are accurate, I think it's a no brainer. However, I wonder about the property if you can get it for $40k. Is this property off market? I looked at a property close to that area previously. If you want to send me a PM with the address I also can take a closer look and give you my opinion on the property.
I see that you guy are investors in the Indianapolis,In area. I get deeply discounted properties from the bank and private investors. Properties that 30%-50% below market value. You can join My Buyers List at www.BargainIndyHouses.com to get this deeply discounted properties as well. Thanks and have a great day.
So just to update you all. I did inquire to the listing realtor about getting a showing so I could get my handyman out there to look at it with me. Apparently last week the property was put under contract and now they are only taking back up offers. So it looks like I was just a bit too late on this one, not really sure If its worth the time to get in line. I did spend some time in the neighborhood though and its quite nice. So it will definitely be one of my target areas going forward.
Will be interesting to see if this one will pop back up in a few months totally rehabbed.
Thank you all for your responses, really helped me confirm somethings about that neighborhood and general area. The learning continues...
Good deals like this go fast so you need to learn to recognize them and pull the trigger quickly.
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