All Forum Posts by: Jaron Walling

@Leo Koonan I'd say 10% CoC is possible but difficult! I've researched and walked a few properties that "needed work". The numbers I came up with are around 5-7% CoC including an estimated mortgage. My issue is estimating rehab because some of these properties are train wrecks. For example a $60k house that needs $50K in rehab.

That's bummer man but set a reminder to look into in a few months time if it doesn't sell. That could turn into a great deal after a few months. 

How long have you held the the rental property and how depreciation recapture will you have to pay? $200K could buy 2-3 properties in a cheaper market that's for sure. 

If you want to 1031 exchange you'll have 45 days to target 3 properties and I believe 6 months to close on a property (or multi properties) so that's something to consider.  

In my opinion I'd jump the gun on the 1031 and find cash flowing properties in a smaller market. 

That's a cheap property but there are some good ones at that price! Just keep looking man. 

The list of prospective neighborhoods hasn't changed. I live in Broad Ripple and ride my bicycle everywhere. Another one to check out is Tarkington Park. It's near 38th street (pretty rough) but I'm seeing good changes. 

Hey @David Martin Jr I saw your other post about that location. It's really dependent on the deal and what price point. How much rehab does the property need? Most houses in that location sell for <$150k.

@David Martin Jr  I've lived in Indy for 5 years and know all the streets. You have a good eye because that's an area I'm targeting myself. Another area to look into is the near west side of downtown. 

I would aggressively pay down the mortgage, stabilize the property, and hopefully gain appreciation. Honestly you need more equity in the property to make the next move. 

I would've said option A but you haven't lived in the duplex long enough to sell tax free. I agree with @Dennis M. to go for a 1031 exchange and find a better cash flowing property. You could find a 3rd party intermediary, locate property(s), and get something under contract the day you sell. 

@Cassidy Burns Was the property a primary residence or purely investment? 

After researching more on this it looks like when a property is purchased, be sure to retain a copy of documents that can prove the cost basis. If you make improvements to a property (garage or another type of remodeling or addition) those items will also be added to your cost basis and affect your capital gain or loss.