All Forum Posts by: Mike Knowles
Mike Knowles has started 10 posts and replied 71 times.
Post: Indianapolis 4/3 in Geist not selling. Did I overestimate?

- Investor
- Chicago, IL
- Posts 80
- Votes 21
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.
Post: Property Taxes in Indianapolis - Don't these have to rise?

- Investor
- Chicago, IL
- Posts 80
- Votes 21
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.
Post: Indianapolis: Fountain Square (New $20MM Apartment Project)

- Investor
- Chicago, IL
- Posts 80
- Votes 21
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

- Investor
- Chicago, IL
- Posts 80
- Votes 21
Thanks, Jay! We'll definitely look into it.
Post: Looking for Napa / Sonoma rental

- 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?

- 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

- 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.
Post: Did anyone else get a bunch of REO offers accepted last week?

- Investor
- Chicago, IL
- Posts 80
- Votes 21
@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.
Post: Anybody know any decent foundation/structural engineers in indy?

- Investor
- Chicago, IL
- Posts 80
- Votes 21
Either IFS or Americrawl. Both are great.
Post: What are these stains on brick exterior?

- 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.