Residential Real Estate Broker · Indianapolis, IN · Member since 2009 · 477 posts · 304 votes
10y
Couple of things I forgot to mention.. Small multifams, in most cases, you are going to need to take care of the lawns.
You need to make sure utilities are separated, otherwise you will end up paying them.. That may be why the rents were $550, because you end up paying some of the utils.. In most cases your paying utilities is NOT something you want to deal with.. Water is the easiest for you to pay for, after that I start to get twitchy on the "don't buy" button...
When owner pays the utilities, you get tenants who crank the heat up in the winter, and when they are too hot they open a window to cool down... Ask me how I know!
Lastly, those taxes were DIRT cheap... I would bet money they will double. Someone probably had exemptions filed on them, or the appraised value is really low... Appraised value would be nicer, because it generally takes a while for the appraised value to raise, but it will at some point.... Taxes for investors are 2% of appraised value for investors of residential properties(less than 4 units typically)... 3% for commercial properties(4 units or more typically).
Investor · Herndon, VA · Member since 2015 · 185 posts · 74 votes
10y
@Lee Smith I missed seeing your response as I wasn't tagged and it was on next page hence opened another thread for others to provide their inputs :-).
(https://www.biggerpockets.com/forums/88/topics/298920-indy-little-flower---deal-analysis) This one has some extra details. address is 1414 N Grant Ave. I am waiting for contractor numbers and possibly would take bid from you if number looks elevated.
You are right about PM charging one month lease up fee and 10% thereafter every month. Also during renewal or new tenant. But that is the norm across different PM companies as far as I know. That way real numbers would be 10% + one month lease up (8%) i.e it 18%. Are you or anyone different in that regards?
You can check the prop taxes now have the address :-)
Well, not too keen on central ac installation. Window AC is a cheaper option and would probably go if that pushes rent 725 or more. More desirable is fencing as that makes the perimeter secured and pet owner tenants is a possibility. Normally my PM charges 200-250 each per pet non refundable deposit which is right at 20-25/ mth.
These are great points. I would run with real numbers. Getting 200+ per door after debt service is minimum criteria.
Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
10y
@Mayank S.Little Flower can be good but not knowing the address it's hard to say. Brookside Park is not the nice family oriented park you want in your back yard. There's quite a bit of crime around the park.
Investor · Herndon, VA · Member since 2015 · 185 posts · 74 votes
10y
That's right @Mike D'Arrigo. I vividly remember in our conversation over the phone last year, you had mentioned about Brook side park being a bad area. However this is more of south east side of the park in little flower @1400 block grant ave. I ran the crime numbers and it is closer to northern/west side of park not so much in little flower.
Sheffield, IL · Member since 2012 · 85 posts · 27 votes
10y
@Grace Wang I own 10+ SFR's in Indy and almost all are outside the 465 loop. out-of-state investors need better tenants/properties/neighborhoods IMO. Start there, keep the age of your properties low (all of mine were built in 2000 or after). Returns won't look as good on paper, but my experience with different classes of properties (A, B, and C) has proven otherwise.