All Forum Posts by: Doris Jin Huang

@Zach Lemaster Appreciate it Zach!

@Kevin Ivey We are on the same boat. Our properties in NY hardly generate any meaningful cash flow but appreciation has been good in the past years, so overall we consider them good investments. However an issue for us is the big loss on paper will affect our ability to borrow conventionally. By contrast, properties like this one in Indy will lower our DTI, theoretically allowing the banks to lend us more.

@Justin H. This property is in Devington, managed by Pillario Property Management. Are you from Indy?

@Melissa Perez Glad you asked. I forgot to mention RTR uses 3% vacancy, 3% r&m, and no capex in their models, under the assumption that their newly renovated properties have minimum repair needs. I used more conservative numbers based on what we learned from our NY rentals and from other investors. What numbers do you use?

Wanted to share a case study of our recent purchase in Indianapolis through Rent to Retirement, hoping this is helpful for those who are looking into this company or turnkey investment in general. The property is a single family home located in a B/C neighborhood. 

Purchase price: $142,000 

Conventional loan 20% down

Rent: $1225

Property tax: $1076

Insurance: $520

Management fee: 8%

With the assumption of 6% repair and maintenance, 5% vacancy, 6% capex, it will net us $268/month, reflecting a 9.8% cash on cash ROI.

We closed it over a month ago and just received our first month rent. The process was smooth and all the parties involved (RTR, local turnkey provider, lender, PM company) are pretty responsive. The numbers provided by RTR are mostly accurate (the only thing is that their property tax number $829 was for owner-occupied which became $1076 since it's now a rental). So far there hasn't been any maintenance issues but of course too early to say. Overall it's a positive experience.

We have a few rentals in NY where we live but now shifting our focus out of state for obvious reasons. Our plan is to purchase more properties in Indianapolis, turnkey or fixer upper. Look forward to meeting more people in this market. Any comments, questions, suggestions welcomed.

@Keith Resnover appreciate the input!

I'm looking at a SFH in Decatur township in Indianapolis as a buy & hold rental. It's on Sandy Forge Drive, zip code 46221. I've never been to Indy. From my research it seems a solid B class neighborhood with low crime. Would appreciate any comments on the area - rental demands, school districts, price trends, or any other aspects. Thank you.

@Zach Lemaster appreciate the info, Zach. Look forward to working with you.

@Zach Lemaster Would you mind sharing the average occupancy timeline for your class A and B properties? Curious how big the difference is.

Thanks,

Doris

@Joseph Schweizer thanks for the response. Very nice of you to share your experience. I’ll do the same after pulling the trigger. Good luck with your investment!