All Forum Posts by: Josh C.

@Sean Keller

As mentioned before tons of little pockets and hard to give this and that. But I little flower, bates, near west side (lots of development happening here), near east side, Franklin, Washington township mostly and could go on and on. Another “safer” strategy is avoid super low rents (less than $800). Happen to jump on a call if you are serious about Indianapolis.

@Sean Keller

I can tell from experience your maintenance and turnover costs will be higher on 30th and east side Indy than Carmel.

This is a decent example, but there are nicer areas in Indy than this that would stack up better than Carmel (especially when you factor duplexes are plentiful in Indy) with only slightly more headache than Carmel vs the property you suggested which would be much greater headache.

We manage some homes in Carmel and they do well. I will say they are all worth more than $279k, more like 350-400k, and they rent for 2500ish. So not great cash flow but solid tenants that take great care of your asset while the owners pay down debt and get tax write offs. If maximizing cash flow today is your only goal then I’d look elsewhere, but Carmel (or really any class A area in Indianapolis) is a safe place to park money for now if other asset classes scare you.

My opinion anyway based on 10 years of property management and investing here.

I’ll add I personally don’t own in areas like this and prefer more downtown areas due to upfront costs, but for a high income investor wanting a safe investment areas like this can make sense.

@Josh Klein

I’ve done new construction in Indy. I think you can buy lots for the prices you mentioned, but you might need a time machine to build a 3 bed house for 75-100k. Im a GC and no way I could do that. We routinely spend more than that on a rehab of a 3 bed house.

Most people are very reasonable. Just email saying you are unhappy and want to cancel. They are probably happy to not have to deal with you either and will waive the fee. Sometimes things are a bad fit.

As far as the $500 eviction fee that is cost to file. Regardless if you had the tenant move out early, the courts and attorneys will be paid for services rendered.

Also, the only people putting in furnaces for $1600 these days are unlicensed and usually unreliable people. A dude and a truck with some cheap tools. No real licensed company is going to do that. No good long standing company could afford to sell at that price. My opinion from having installed 100s of hvac systems dealing with real companies and crackheads alike. You can probably find the latter to do it, but you can’t find one to do several of them and show up when you really need them.

Seems like you want to park your money and collect rent. Nothing wrong with that. Would recommend A-B stuff. Low end rentals are very hands on and no for the faint of heart.

Just find a newer built place with the rents you are comfortable with and buy it. A class investing is very easy with way less risk. Your returns will be lower, but with no mortgage you’ll be happy will the mailbox money and should easily beat the bank. In Indianapolis that would buy you 8-9k a month in gross rents in A/B class stock. Not sure what that buys in CA.

Good luck.

You can absolutely bonus depreciate a large percentage of the building value of the home as described by the OP. Not sure why people are saying you can’t do this. So much misinformation on this thread.

We’ve done this for years and many many people do this as well. Being a RE professional (which I am) helps, but many of our clients aren’t and if you have a killer building making good money this is a great tax strategy regardless of RE pro status. You can’t count against your W2 income usually, but you can against the building income.

Now if you have a normal W2 income and a regular sfh that makes $150/month it's probably not worth the cost seg investment. But a very profitable and expensive apartment or STR it can make a lot of sense.

This is pretty much the lifeblood of the syndication business model. Very common and the OP got it mostly right.

@Bruce Woodruff

Ya’ll just have your poop pipes on the side of your houses down there? Baking in the sun on the side on house for the neighbors to look at? That’s nuts.

You should check with a CPA about sending 1099s. I’ve always been under the impression it’s anyone over $600. I find it hard to believe paying someone another way like a credit card or Venmo would negate the $600 rule. We 1099 everyone regardless of how we pay. And I bet if you double check with your CPA they’ll say you should too.

“Builders reel at a glut of unsold houses”

This is just a lie to get clicks. Builders in 99% of markets have and still are killing it. Days on market is still way lower than 5 years ago. Just because we don’t have 50 offers the first weekend doesn’t mean the sky is falling. Huge space between hottest market ever and 2008.