Hey everyone, my name is Shaun. I’m newer to real estate investing and could really use some advice from investors with more experience.

I recently purchased a property through a wholesaler in Indianapolis in the 46221 ZIP code. The property was marketed as a row house with D-3 multifamily zoning. It’s currently a 5-bedroom home, and at some point a second kitchen was added, but the property was never officially converted into a duplex.

I purchased it with the plan of renovating it, converting it into a duplex, and using the BRRRR strategy. Unfortunately, after purchasing it, I found out from the city that due to changes in the regulations and the size of the property/lot, they will not allow it to be converted into a duplex.

Obviously, this puts a pretty big dent in my original projected rents and refinance strategy.

My current plan is to pivot by removing the second kitchen and potentially converting that space into a sixth bedroom since there is plenty of room. I'm hoping the additional bedroom will help both the rental income and ARV.

My biggest question is: What would you do with this property to maximize cash flow while still keeping it as a long-term investment?

I’m considering several options:

• Traditional long-term rental

• Section 8 / Housing Choice Voucher

• Mid-term rental

• Short-term rental

• Renting by the room

• Possibly leasing the property to an operator that provides senior care, transitional housing, or another type of group housing, assuming zoning and licensing allow it

My goal is definitely to buy and hold rather than sell. I’m just starting out, and I’d really like to avoid turning my first major value-add project into a losing deal.

If anyone has experience with larger 5–6 bedroom rentals in Indianapolis, especially around the 46221 area, I’d really appreciate hearing what strategy has worked for you. I’d also love to hear from anyone who has dealt with a similar situation where the original multifamily conversion plan fell through and you had to pivot.

Any advice, ideas, or lessons learned would be greatly appreciated. Thanks