Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime

Let's keep in touch

Subscribe to our newsletter for timely insights and actionable tips on your real estate journey.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions
×
Try Pro Features for Free
Start your 7 day free trial. Pick markets, find deals, analyze and manage properties.
Followed Discussions Followed Categories Followed People Followed Locations
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Mike Knowles

Mike Knowles has started 10 posts and replied 71 times.

There is more money than deals here so if it's not selling, you're asking too much. I pulled comps and, without looking at them in too much detail, think $300k is fair. There are two sales in that same subdivision in the last 6 months of similar size at $308k (great condition, some updates) and $325k (totally updated and beautiful). You also have 2 bigger houses sold at $282k and $290k (both are a little dated). Let's assume ARV is $300k and your rehab is $35k. After that it's just basic math.

ARV = $300k. Subtract rehab ($35k), front end closing costs ($1,500), taxes/HOA/utilities for 4 months ($3,500), and back end closing costs (6% * ARV + $2k misc = $20k).

That leaves $240,000 for purchase price + profit. Personally, I would want to make at least $40k on this one (about 15% cash ROI), so that makes my offer $200k.

This is essentially the same place @Edward Rhoads got to, except he included $15k of contingency, which is smart.  He's more than likely right.   A $35k rehab budget is less than $10/sf, which means you're only doing cosmetic updates.  Since this house was built in 2001, I suspect the HVAC is original/at the end of its useful life.  If the roof hasn't been replaced already, I would be wary of that, too...there's a lot of hail damage here in Indiana.

I spent 10 minutes on this so may be missing things, but this is how I would evaluate it as a local investor.

Taxes in Indianapolis are different for owner occupied homes vs investor owned homes.  For owner occupied, they are capped at 1% of assessed value (+ any special levies that voters approve).  For investors, it's 2% of assessed value (+ voter approved amounts).  If you're buying a property that's currently owner occupied, you can expect them to at least double.

What's most interesting to me is that this development is rather far East.  State Street seems like it's the dividing line and property values get significantly cheaper if you are east of there (though there are a handful of higher end homes now).  I wonder what kind of impact this will have and if buying property east of State is becoming a safer bet.

Post: Looking for Napa / Sonoma rental

Mike KnowlesPosted
  • Investor
  • Chicago, IL
  • Posts 80
  • Votes 21

Thanks, Jay!  We'll definitely look into it.

Post: Looking for Napa / Sonoma rental

Mike KnowlesPosted
  • Investor
  • Chicago, IL
  • Posts 80
  • Votes 21

Hi all - apologies if this isn't the right spot for this, but figured someone here may be able to point me in the right direction.  My wife and I are looking to rent a house in the Napa / Sonoma area of CA for our 10 year anniversary in August 2017.  Looking on vrbo, etc., we haven't been able to find anything that is bigger than 6 bedrooms and we'd really like to have 8 (we're inviting quite a few people from our wedding party).  Probably looking at 4 nights (Wed - Sun), would prefer a pool, nice place, etc.  Any ideas on who to connect with?

Thanks in advance!

Post: Indianapolis - What is the Value of a Garage?

Mike KnowlesPosted
  • Investor
  • Chicago, IL
  • Posts 80
  • Votes 21

I just had a two car garage quoted as part of a larger project in Fall Creek.  Was 25k and that included removal of existing concrete and pouring a new slab.  This was a new GC and the rest of the items on the list were about 15% higher than my normal guy.  So,  I suspect this is at the high end and that a reasonable range is 15-20k,  especially if you can use the existing slab. 

I don't know if you'd make that back in sales price.  Would make it easier to sell,  though. 

Post: Wholesaling Duplexes in Indianapolis

Mike KnowlesPosted
  • Investor
  • Chicago, IL
  • Posts 80
  • Votes 21

Duplexes are in high demand from out of state and out of country investors. If you buy them right,  you won't have any problem moving them. 

I'd be happy to run comps on them for you,  if you'd let me have first crack as they come available. 

@Shawn Holsapple - congrats!  What a week.  I'm looking for a project (or two) so let me know if you're interested in moving any of those or partnering on something.

Either IFS or Americrawl.  Both are great.

Post: What are these stains on brick exterior?

Mike KnowlesPosted
  • Investor
  • Chicago, IL
  • Posts 80
  • Votes 21

Thanks, guys. I suspect it is minerals based on its hardness.  Will try pressure washing and see how it goes. Thanks again.

1 2 3 4 5 6 7 8