All Forum Posts by: Annie Li

@Gabe G. how far is that from E 42th st & N Post road? This can make a big difference per local investors...

I'm under contract with another Indiana SFH. My realtor has concerns about the neighborhood (at boarder of Gary and Merrillville), but my property manager thinks it's no problem to rent it out for $1,200/month. Please kindly share your thoughts if you are familiar with the area. Really appreciate it!

Property address: 

@Frank Casi I didn't buy any properties from the company because some investors shared their experience with me about working with this company which was really bad. 

Thanks for everyone's reply.  

@Deisha Washington I've heard of the infamous post rd & 42 st, so I asked my realtor and my inspector's opinion about the neighborhood before signing the contract.

@Tracey Stegemoller  You've got both right.  For 1st one, if it's class B, then the numbers won't work for me anymore.  I will probably cancel the contract.  For 2nd one, there is one turnkey that's 2 streets over selling for $54,000 with $825 rent, and the rehab is very basic. I've looked 6 TK providers' properties when I was in Indy and didn't find anything that's even close to this one.  I'd love to get some info on contractors and handyman, will PM you.

@Clay Manship I plan to do nicer rehabs to attract better tenants too.  I even thought of blowing fiberglass to add insulation in the walls so my tenant will be the one paying the lowest utility bills in the whole neighborhood.  I like the wholesaler too and would love to do more business with him in the future.

After several months' intensive self-education and a few failed attempts in SoCal, I started my first real estate tour last week in the hope to buy some good rental properties in Indiana.  

I stayed in Indy for three days and was under contact for two properties during that time.  These two are my first true investment properties (I have one rental which was my primary residence). I am very happy about what I've accomplished so far in Indy.  I will share my experience in more detail with BPers who are interested in Indy market after both transactions are complete.  

These 2 properties are very different because I tried to diversify from the beginning to reduce risks considering I am a new investor buying in a new area, furthermore, I will gain more experience with exposure to different types of properties/areas. One is a REO newer house in a solid class A area from MLS; the other one is a well-maintained older house in a class C area from a wholesaler. The numbers are below:

House #1 (4 bed 2 bath):

Year built: 1994

Square footage: 1440

Listing price: $105,500

Under contract price: $98,500 ($100,000 with $1,500 credit)

ARV: $125,000 (conservative)

Repair cost: $6,000-$7,000 (realtor's estimate but can be less)

Rent: $1,200-$1,300

Location: E 75th st & N 700 W, 46236

House #2 (3 bed 1 bath with 2 family rooms):

Year built: 1961

Square footage: 1389

Under contract price: $30,000

ARV: $50,000 (conservative)

Repair cost: $7,000 (wholesaler'so estimate but can be a little more)

Rent: $800-$850

Location: E 25th st & N Post Rd, 46219

Any feedback on these 2 properties especially on location is greatly appreciated.  I still have time to back off.  If you know any good property management company in the area, please kindly share with me.  

Thank you.

@Steven J. I sent you a message, thanks.

Happy Thanksgiving!

I've had good luck when asking my first question on a deal a week ago, so here I am again...:-)

This is a 11-unit multifamily in a quiet residential area, across the street is a cemetery.  9 are 1 bed 1 bath (8 is currently rented with $550/month), 2 needs to be converted to 1 bed 1 bath (not ready for rent yet).  

Per seller, it's very easy to rent because there is a college 5 mins drive away and some other employers in the neighborhood.  Annual net operating income is around $42,000 (seller is managing the property himself so no PM cost).  Owner is responsible for hot water and water/sewer/garbage, etc., renter is responsible for gas and electric.

My questions are:

1. Based on the numbers, what's the fair market value?  I've heard multi-family's values are based on cash flow not comps, but haven't got a chance to dig into it because this listing is a accidental found.

2. Will the cemetery affect property value or rent in the long run? 

3.  I plan to find a residence manager as PM.  What's the fair pay to him/her managing such a property?  

4. Which PM software do you recommend for smaller properties like this?   

5. Any recommendations on lenders?

I really appreciate your input.  Wish all BP members have an awesome holiday season!

@Vanessa Vandervalk In a rural area, it might be even more difficult to sublease bedrooms.  I used BP rental calc to do analysis.

@Joe Moore  I think so too!  

@Josie Roman It's hard to compare without neighborhood and all expenses listed.  $25k might be tile roofing?  I googled and for shingle roof it should be around $10k-15k, so I probably under estimated. 

@Kyle J. I completely agree with you and appreciate your taking the time to explain everything in detail.  People can be biased when they really want things to work for them.  I guess I shouldn't have even started with such a rural area.  Lessons learnt.   

@John D. Yes, I was using BP rental calc for my analysis.  I mentioned 1.33% because it's so unusual in SoCal which is one of the main reasons I placed an offer.  I also noticed those SFHs with non-permitted alternations, but the ones I looked are all in horrible conditions that I'm not too excited to deal with being far away.

@Matt R. It has been for sale for about a month, seller's agent said there have been lots of interest but nobody submitted an offer before me.  This is also a red flag if I flip it.  For a rural area with less than 30k population (not to mention the military lowered housing allowance so many military tenants moved back to live on base), I think it's just too much uncertainty to continue trying that area.