All Forum Posts by: Anderson Schulle

Hello Manpreet. We can help you in Dallas-Fort Worth and in Indianapolis. DFW is getting more difficult to cashflow, but with some patience the right properties do show up. Indianapolis is easier to find properties, in fact we have a portfolio of 11 doors available right now in a great neighborhood. PM me for more info and we can discuss if we are a fit.

10 property portfolio for sale in Indianapolis. 10 are SFR and one is a duplex. This is a turnkey investment with management in place!

10 units are rented, some with long time tenants, that have been rehabbed and well maintained, 1 property is rent ready.

10 properties are located in Lawrence Township. Great location. Great School district. High demand for rentals. 1 property is located in Warren Township close by to the rest, great location as well, attracting quality tenants. All properties are on slab foundation...no basement leaking to deal with!

Some minor repairs needed, such as 2 dishwashers need replacement (tenants have not asked for it, so it would be at next tenant turnover). One house needs a little soffit repair, another could use new gutters. And one house should have a water softener installed due to hard water. No immediate repairs needed, but these are recommended.

One property is a duplex and is individually metered. Tenants pay all utilities at all properties.

Total monthly gross rent: $7950

Total yearly est. property tax: $9059.52 ($754.96/month)

Prop. mgmt. fee: 10%

Prop. insurance: TBD, but around $500-650/month

This is a great performing portfolio. Sales price is 600k for the entire portfolio.

Serious inquiries only. Buyer pays all closing cost (est. $1k per property). Closing target: 7/2/18

Please PM for more info. Pictures available.

We could help you in Dallas-Fort Worth and Indianapolis. But 10% will be impossible in Dallas. Unless you go for a really bad neighborhood, in which case the return only works on paper, not in practice. We have a 10 door (9 properties) portfolio available in Indianapolis that yields about 10% in a good school district. PM me the formula you use to determine your ROI and Id be happy to plug in the numbers for this portfolio and send it back to you.

Hi Cathy. We are in Dallas-Fort Worth and Indianapolis and work with a lot of foreign investors. I agree with you on the long term value of investing in Texas. DFW has a high demand for rentals. Even the bad neighborhoods are appreciating like crazy. I prefer staying in neighborhoods that have at least an average rated school district. It’s the best cost-benefit. But it’s getting very difficult to find those rentals off market. And on the MLS the prices just don’t make sense from an investor perspective. PM me and I’d be happy to discuss your goals and see if we are a fit.

Hi Amie, please send properties as they become along to acquisitions @ same domain as my signature.

That’s the business model I have basically offered here in Dallas and Fort Worth to our property management clients who want more rentals for their portfolio. In essence we source a property (directly or through a wholesaler, but always off-market). Then rehab it and then lease and manage it. We charge a sourcing fee, essentially a commission. The market in DFW is getting very difficult to source properties, though, since everybody is willing to pay up to 90% ARV for rentals. But depending on your criteria and if you have some patience to wait for the right deal, it’s doable.

Probably not with a traditional turnkey provider who offers you the final product at a premium price, as many mentioned here already. I built my property management business by basically offering our service at a fixed cost, being the boots on the ground for the out of state or out of country investor. The basic approach is, you find a good local team that will find you the distressed property, rehab it for you, rent it for you, manage it for for you. Then you refinance and repeat. There is a higher risk in doing it, because you never fully know the final cost of a rehab. You can have a good initial estimate. But that’s exactly how it would be if you would have done it all on your own. The challenge is buying the distressed property at a reasonable price. In Dallas-Fort Worth investors are paying 85% of market value.That’s the going rate when buying properties from wholesalers. But since the goal is to make them rentals, you are still getting about 15% of equity. But prices here have gone up so much that its hard to find a deal that cashflows. I also invest in Indianapolis and do the same there. Challenge there is to find homes in the right neighborhoods. Most of the stuff that comes across my desk is in center township in Indy, where one street is a good investment and the next one isn’t. Just based on the type of tenants you will be attracting. But in the end, I believe with the right local partner, it is possible to do a modified turnkey BRRRR.

Great discussion! Following...

I think you are on the right track. Just get it going to generate your leads. If you have any deals in Indianapolis metro, let me know. I might buy them from you if they are good deals.

Hi @Kris Williams. Congratulations on this first step. I remember being in your shoes. I was terrified, and overthought everything. So here are two suggestions: 

1) look up REI groups in the DFW area (most are in meetup.com) and attend many meetings and start networking and talking to investors, wholesalers and other professionals

2) don't overthink it, make sure you know how to run comps, how to have a general idea of costs for a rehab, and get your first house under contract (you can use the TREC contract, and just add a 14 day option period, during which you will pitch the deal to investors like me and @Sam Nadar. If it's a deal, we will buy it. If it's not, we will tell you and you can execute your option and terminate the contract.

The REIA part is probably the most important step for you right now. Surrounding yourself with people you can talk to.

Good luck!