All Forum Posts by: Dan Perrott

@Account Closed- Not all duplexes in the Indianapolis area are bad.  We have duplexes in Indianapolis that are great money makers.  In most cases we have them leased before the tenant moves out.   I want to make sure that the out-of-town investors realize that there are some excellent areas in Indy that you can make good solid investments.  Note that my properties are in B to C+ area getting $900 a side per month.  Yes - duplexes do exist in good areas in Indianapolis.  Of course, they are not the $25-50k priced properties in the war zone areas.

From my experience  - almost all of the issues with duplexes in the Indianapolis neighborhood area that I invest are the with the management companies.  They have the same attitude as you - duplexes attract lower class of tenants - therefore they only bring in the lower class of tenants that you are referring to. 

I myself am continuing to look for duplexes because they can be a great investment if you management them correctly.  I self manage my properties at this time.

My story starts when I evicted a tenant late last year.  The tenant complied and left on the appropriate court ordered date and time.  He handed me the keys and left. 

At the time when he gave me the keys, my son and I were to changing the locks and securing the property,  We photographed the property as he had left it for the court damage hearing.  It was a mess.  He even had a campfire in the middle of the master bedroom, burning through the carpeting.  We took pictures of every room from all views. 

The next day we went back to start the cleanup for the property turnover.  We discovered that the back door was kicked in - someone had broken in.  Having taken pictures of the entire property we then compared the photographs to the rooms.  Every room was exactly like the photos - cabinets open, doors ajar, garbage on the floor, etc.  ---Except there was a missing pair of dress shoes.  The tenant had kicked in the door because he had forgotten his shoes.

He shouldn't have worn his shoes to court....

Needless to say - his wages have been garnished and he is paying for the damages.

First - welcome to BP!

My number one piece of device is to not fall in love with the property but fall in love with the deal.  In other words, just don't buy the property because you like it - make sure that the numbers work as well.

Keep in mind anything can be repaired but there is a cost to everything.  Look for the big items - like structural issues - cracks in the walls, sagging ceilings, uneven floors, etc.  Major systems can lead to high cost as well - electric service, water, furnace, etc.   These are usually your big ticket items.

Good luck and keep us updated to what you find.

@Matt Sherman

I would recommend the HELOC (home equity line of credit) as well. It will enable you to use and reuse the money as you go along. A simple and good strategy. Usually the rates on HELOC are lower that an conventional loan since it is considered a short term loan.

Good luck and happy investing!

First - welcome to BP!  This is the place to get answers in RE investing.

My suggestion would be to connect with a local Real Estate investing group in Houston.  By networking with local investors you will be able to possibly pick up a mentor and possibly others to invest.  You will need to build relationships with the local investors to start.  A good mentor can assist you in developing the materials that would be needed to bring the deal to an investor.  Good luck in your endeavors.

I would recommend the Ken McElroy books from the RDPD series. 

• The advanced guide to real estate investing
• The ABCs of Real estate investing
• The ABC;s of Property Management

They are general in nature but give a good overall overview in multi-unit investing.

@Jon Quigley

 - Congrats!  the first one always seems to be the hardest.  Stabilize and start to look for the next one.

What about the security deposit?  In most states you can use the security deposit for the rent. 

I agree with Randy that if it is close to rent ready then find another tenant and move on.

First - welcome to BP!

And my answer is YES!  I let them know before they fill out an application.  It eliminates most of the problem applicants from applying.  Set your Rental Criteria and stick to it.  It may take a little more time up front but will cost you less in time and money in the long run. 

@Sandy Thomas

 Welcome to BP!  You might want to check out the INREIA meeting as well.  Check out www.myinreia.com.