All Forum Posts by: Ryan Moeller

Indianapolis is an outstanding market.  It has stability, job and population growth with really cheap prices and huge spreads/cash flow.  I lived and invested in CA for many years and can relate to the lack of cash flow and extreme competition in expensive markets.  That's why so many out of state investors come to Indy.  Profits are as big or bigger than CA with 10% the amount all-in in many cases.

I had Indy pegged for about 12 years as the best market for cash flow and huge profits and it has certainly been confirmed after doing over 100 deals in the last 2 years and on pace to do well over 100 this year alone.  My only regret is not moving back sooner.  I work with a lot of out of state buyers, some purchase turnkey, many prefer distressed and needing rehab.  The opportunities in Indianapolis are endless.

You already have out of state investments so you know what you are getting yourself into and are obviously comfortable with that. I live in San Diego and invest out of state where I can get tremendous cash flow. I say go for it. Real estate can be passive and you are hiring property management so you do not have to deal with the daily hassles.

The numbers seem to make sense and you have accounted for management, repairs and other expenses. I would factor in vacancy but it is good that you have some reserves. My advice is to just make sure you do thorough due diligence on the condition of the property, due diligence on the management company and vacancy rates in the area and with similar properties. Make sure you are prepared for all worst case scenarios.

How is the LTV? I recommend to stick around 50% LTV and never go over 70%. That way you can unload it quick if you have to or hold, basically you have many exits. Rents I like when they are 2-3% of purchase and yours is 2.67%. Could be a fantastic deal.

One thing to consider is there are 4 units so there is a chance more than 1 unit can be vacant. Those numbers would be better with less units and less potential for vacancy. Do your homework as it appears you are.

It blows me away how many investors ask for advice on a deal that has terrible numbers. It is nice to see a solid cash flow deal and good for you for asking advice, it never hurts and actually allows you to mitigate risk. Best of luck, I would love to hear how it turns out.

No pre-payment penalty on the loan I assume? Any chance you can up the rents?

Great post Rich. I agree, fear is the main thing holding people back. To overcome that fear, I believe they have to focus on one strategy and master it. How would you recommend overcoming that fear?

Great post. After wasting time on other networking sites I think I have found a home here on BiggerPockets. The next 3-5 years is going to be incredible for savvy investors. Best of luck to all!!

Here is a good way to put it and appropriate since this weekend is Halloween. Those on BiggerPockets wear a Trump costume, those not wear a Madoff costume!

Congrats Justin, that's awesome! The value of a good mentor is understated as most beginners spin their wheels and never overcome the comfort barriers. Basically, they never get out of their own way. You did though and twice, that is awesome. I look forward to hearing more inspiring stories of your future successes!

Sage, I recommend EMyth Revisited, The Rich Dad Poor Dad Books including Real Estate Riches and Cashflow Quadrants and Goals by Brian Tracy.