Deal on a 4 Unit in merrillville Indiana (NWI)

[Richard Moro]

Hi guys,

I am looking at a deal in Merrillville IN, a 4 unit next to other multifamily properties. This is a quote from the broker, " He wants 250,00 for it. Has income of $2775.00 per month and expenses are trash bill of $800 per Year and sewer bill of $1050.00 per Year. Taxes are $5300 per Year and Insurance is approx. $1600 per Year. That's all the expenses." 

Here is some data I got from www.city-data.com on the specific neighborhood it is in (Turkey Creek Meadows), 46% white, 28% black, 26% Hispanic. Median family income is 58k, 13% unemployment,  Population density (people per square mile):1,361, Cost of living index:97.15, Median house or condo value ($):$125,560, Crime - City-data.com crime index:272, Owner occupied housing units (%):67.2%, Median gross rent ($):$1,223. 

That Information above is again, for the specific neighborhood, not the whole city. It is not on the border of Gary IN, but it seems to be closer then I would like it to be. I feel as if the proximity to the highway, shopping center(s), and golf course will help it out. I could be wrong but I am not afraid to admit that or ask questions. Current population of the whole town is 34,994 and it peaked in 2014 35,473 (was going up slightly until then). 

I hope I have added as much info as needed to give a "rough" estimate on the deal. Thank you guys :)

[Account Closed]

Originally posted by @Richard Moro:

Hi guys,

I am looking at a deal in Merrillville IN, a 4 unit next to other multifamily properties. This is a quote from the broker, " He wants 250,00 for it. Has income of $2775.00 per month and expenses are trash bill of $800 per Year and sewer bill of $1050.00 per Year. Taxes are $5300 per Year and Insurance is approx. $1600 per Year. That's all the expenses." 

Here is some data I got from www.city-data.com on the specific neighborhood it is in (Turkey Creek Meadows), 46% white, 28% black, 26% Hispanic. Median family income is 58k, 13% unemployment,  Population density (people per square mile):1,361, Cost of living index:97.15, Median house or condo value ($):$125,560, Crime - City-data.com crime index:272, Owner occupied housing units (%):67.2%, Median gross rent ($):$1,223. 

That Information above is again, for the specific neighborhood, not the whole city. It is not on the border of Gary IN, but it seems to be closer then I would like it to be. I feel as if the proximity to the highway, shopping center(s), and golf course will help it out. I could be wrong but I am not afraid to admit that or ask questions. Current population of the whole town is 34,994 and it peaked in 2014 35,473 (was going up slightly until then). 

I hope I have added as much info as needed to give a "rough" estimate on the deal. Thank you guys :)

Hey Richard,

I just accepted an offer on 5340 Pennsylvania St in Merrillville for much less than that. MUCH less. Don't buy those 4 units off the MLS... they're a rare commodity in the area so when people get their hands on them they overprice the hell out of it.

Let's get in touch. I can tell you about the one I just sold so you have an idea on what to look for. 

Don't worry so much about pro-formas and PNL statements. It's a 4 unit, and Hammond/Merrillville are in high rental demand. If the units are in good shape and the property is decent looking all you need is a good manager... and that sucker will rent FAST. Do you have a property manager already?