Indianapolis Investors - What do you think?

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I am curious to know what you think...

1. I like this general area, but we all know Indy can be street-by-street. Would you buy on this block?

2. With >2,000sq-ft looks like great opportunity to add a couple bedrooms and turn this place into a 4bed, 2.5bath. What is the ballpark estimate for rehab costs? My guess was $20k, but that seems light. Anyone have a better guess?

3. ARV = $150k seems reasonable. Do you agree?

Anastasia Gamino · Answer

If you are looking in C class areas, I have found it easier to self- manage than our near eastside property.  For Indy C class, it's one of the better neighborhoods in my opinion.  Like I said with the Central State Complex right adjacent to Hawthorne, I believe property values and the neighborhood will continue to go up.

Daniel DiChiro · Answer

Great feedback. Thanks again,

Daniel DiChiro · Answer

Thanks for the feedback, @Anastasia Gamino. Very much appreciated! How has your experience been in Hawthorne? I am getting some mixed reviews on the area. Have you had any trouble with your tenants?

Anastasia Gamino · Answer

I actually have a couple properties in Hawthorne(right across Michigan St) . Because of the Central State Complex(new houses around 200-300K very close to here), there are some flips that are being sold at 150-179 range in Hawthorne(so an appraiser might see those comps maybe).  However, it's  a little bit risky.  It sounds like you plan on BRRRing.  First of all if you can probably charge more for rent than 900 if you are planning on making it 4 bedrooms and if it has 2 1/2 bathrooms?  I have a friend that changes 1200 for a house on Addison in Hawthorne(5 bedrooms 2 bath).  My 4 bedrooms 1 bath, I get 985 with a 2 year lease and it's not that far from here.  Depending on the  need of any mechanical updates(electrical, plumbing, HVAC, furnace, etc), you might be able to get away for less than 20k.

Jake Knight · Answer

Hey Daniel,

The city certainly is targeting improving the area surrounding the White River but so far it's mostly just noticeable on river front properties.  Speedway is a good area but it's surrounded by some very inconsistent zones.  I haven't seen noticeable improvements in those neighborhoods. This is a very street by street city so we're filled with a lot of inconsistency.  The Old Southside neighborhood has seen good improvement along with garfield park/Bean Creek areas.  Happy to discuss over a phone call if that's easier as well - please let me know!

Daniel DiChiro · Answer

Thanks for the feedback @Jake Knight. Although it might not have the best reputation currently, it seems like there might be potential in the future given its proximity to the speedway, the zoo, the new hospital, the white river... are any of those factors worth considering? Or do you still think it is a no-go?

Jake Knight · Answer

Haughville doesn't have the best reputation here and I'm not seeing a lot of positive movement over here.  I think you're numbers are a little high/risky given the location.

Justin Polston · Answer

@Daniel DiChiro go off market suburbs, build a relationship with a broker and get those deals in front of you!

Daniel DiChiro · Answer

Thanks for the input @John Rankin. Just found out the seller has accepted an offer. Market is moving fast these days!

John Rankin · Answer

I'm not super familiar with that area but to me looks like a C- neighborhood. What comps did you use to come up with $150k? My estimate would be $125k on the high end even with the added bedrooms.

Just to finish off the incomplete repairs could cost $20k. Depends on what is needed and if you plan to fix up other parts of the house. Flooring and carpet look pretty outdated.

Indianapolis Investors - What do you think?

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