All Forum Posts by: Kat He

Hi @Jonathan Tao, what is 'Administrative' and 'Contingency' for? Are your closing fees/interest rates quoted from a lender already? The numbers look okay for the most part except I would say PM fees usually are >10% given some common fees on top of the monthly management fee: 1 month leasing, onboarding, professional photos, renewal, inspection. 

What are you using to determine worst, base, best rents? I tend to use the lower end of the rent range when analyzing deals unless there's really strong evidence that it can rent at a higher price point. If you're leasing out in the winter, you should also expect slightly lower rents and/or longer DOM.

Welcome Patrick! I've been investing from out of state for about a year now. Happy to connect!

Hi Russell, I started investing in Indianapolis from out of state (San Diego, now Seattle) about a year ago and focus on BRRRRs. Happy to connect and let me know if I can be of any assistance!

Thank you for sharing! It's great to hear your progress with raising funds and being able to complete so many deals. I am just getting started with private money and preparing information/track record packets for friends and family. Have you found any specific information or communication tactics to be particularly useful when raising private money? For example, I include a chart comparing the returns and risks between savings accounts, stocks, real estate.

@Jaylen Crawford I used to get RPR reports from my PM. Some agents/PMs will generate a report for you for a fee. deptofnumbers has some info and Zillow/Redfin might have some as well (haven't checked latter). And sure, happy to connect! 

Hi @Christian Van Dinther, I was househacking in CA and started investing in Indy a little over a year ago with similar thoughts of building a portfolio across the Midwest, buying SFH/duplexes etc. Happy to chat further about Indy or getting started in general!

@Jaylen Crawford I use 8% for vacancy but 10% is fine as well, you should go higher for small MF. If you want to be more exact, you can leverage market reports and PMs to get an idea for the vacancy specific to the area and property type. Like John mentioned, the 1% rule is a good rule of thumb and it certainly helps to BRRRR vs buying turnkey

Not sure if I'm missing something, but I'm getting $180 after subtracting your costs. Are you factoring vacancy?

Some thoughts:

If this is an investment loan, you'll be looking at 25% down.
$450-$600 annual is about right for SFH in Indy.
After factoring in one-time or additional fees (think advertising, lease renewal, walkthroughs), the PM rate is usually more than 10%.
Maintenance/Capex: 10-15% depending on how recent it was rehabbed is about right. You can also work backwards by thinking about the lifespan of the various items and budget this way (ex. furnace + flooring will need to be replaced within 5 years, find out the costs and divide it over 5 years to get a monthly amount you need to allocate).

I'll be there as well, looking forward to connecting!

Hi @Robert Ogez, welcome to BP! I'm an Indy out of state investor currently in Seattle, WA. Would love to connect and hear more about your investing goals!