All Forum Posts by: Geoff Nielson

Sell it to another investor?

Sell it on the open market?

The other agents that I've used for the purchase of my properties are either not acceptable or not available.  I'm now in the market to find a great agent on the south side of Indianapolis and I'm trying to decide if I should market the home to other investors or just to the general public.

This has all been very helpful!  Thank you for your input everyone!  This is why I love this forum - good solid advice.

Last November, I purchased a rental property.  The house sits on 2 city lots.  I am very interested in building a new home as a rental on the empty second lot.  I've got a builder lined up and now I'm just working through the best way to fund the project.

I have a significant amount of equity tied up in my personal home.  I see two options to use that as a source of funding:

1. Do a HELOC and use my personal home equity to build the new property, or

2.  Do a cash-out refi and use my personal home equity to build the new property

For simplicity sake, let's just assume that I can get either type of loan for the same amount of money and it will cover the total cost of building the new rental property.

Best way is to have your tenant agreement structured to say that all utilities are the tenants responsibility.  They would then be responsible for setting the utilities up.  This will be for electricity, gas and water.  Some cities have waste as a separate company or it can be included with the water (city run waste).  I haven't ever seen a city that wouldn't allow a tenant to set up the utilities in their name.

I posted this same information yesterday, but for some reason, the moderators flagged it as selling services . . . which it is not.  My recommendation is in the Carson Heights and University Heights neighborhoods.  Houses are still relatively cheap and there is high demand for rentals.  If you are interested in renting to students, you can do that.  There are families in the neighborhood as well.  It is a really good mix.  It is just south of Garfield Park area where there is significant investor activity.  It is only a matter of time before they migrate a few blocks south.

Investment Info:

Single-family residence buy & hold investment in Zionsville.

Purchase price: $217,500
Cash invested: $60,000

A SFH investment in the Zionsville, Indiana area. Property is a 3br 2ba and about 2500 sq ft. with a 2 car garage. It was purchased as a turnkey property that could be rented out with minimal investment. It has been rented out for $1700 for 3 years with a long-term renter in place.

What made you interested in investing in this type of deal?

Easy to rent in Zionsville - incredible schools and high property appreciation.

How did you find this deal and how did you negotiate it?

MLS - minimal negotiations done through agents

How did you finance this deal?

From cash reserves - buy and hold and leaving investment in the property.

How did you add value to the deal?

Market appreciation due to the community appreciation

What was the outcome?

Still holding

Lessons learned? Challenges?

Great investment

Investment Info:

Single-family residence buy & hold investment in Indianapolis.

Purchase price: $101,000
Cash invested: $50,000

A SFH in the University Heights neighborhood of Indianapolis, Indiana. The home is a 2br 1ba and 1265 sq ft. The home was originally built in 1933, but has undergone a few different renovations over the years. The home needs a few heavy repairs to be rent-ready.

What made you interested in investing in this type of deal?

The idea is to do a modified house hack. My daughter attends University of Indianapolis and rather than paying her rent to live in someone else's apartment, we purchased the home to save the rent and also to have a roommate live with her and cover the mortgage and insurance.

How did you find this deal and how did you negotiate it?

MLS - negotiated directly through agents

How did you finance this deal?

Most of the funding is coming from cash. Will refi with a cash-out refi when all repairs are done

How did you add value to the deal?

Enlarged bedroom #1, replaced all flooring, install new HVAC system (install central rather than use window units), replace dilapidated siding, install fencing and exterior curb appeal.

What was the outcome?

Still working on it

Lessons learned? Challenges?

Foundation is critical to review before doing anything else!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Agents were lousy, I would not recommend.

@Bryan Richardson @Jonathan Wallace

Would anyone be open to meeting via zoom for a local Indianapolis meetup?

@Jeremy Johnson

Welcome back (next year) to Indianapolis! Thank you for your continued service in keeping our coasts safe and secure!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $217,500
Cash invested: $60,000

Single family home in Zionsville, Indiana

What made you interested in investing in this type of deal?

Good price, great neighborhood, close to home

How did you find this deal and how did you negotiate it?

used a traditional realtor

How did you finance this deal?

traditional

How did you add value to the deal?

No value yet