All Forum Posts by: Marcello I.

@Steve Morris

Your response seems to be ignoring a few things mentioned, particularly I the last part of the post.

The system is 0% down. In these types of setups the energy output is monitored and viewable, often through an app. If you read the last part of the post, an option of this scenario would be billing the tenant (likely for a cheaper rate than the utility company) and acting as the utility provider. I think you can achieve a decent ROI by acting as the utility provider and billing the tenant for usage with your system that you put no money down into. The system will effectively be paid off by the tenant and in this scenario the owner can receive a tax write off for a new roof install.

Seems like a win win scenario to me.

@Gloria Calderon I know this area! Awesome job ! It is definitely a great time to flip on Long Island.

I’m a local realtor and investor. Feel free to reach out.

@Jorge Rivera

Forgot to ask... Are you budgeting for cap ex and maintenance ? Depending on your tenant pool and tenant turn over you should budget accordingly for maintenance and cap-ex. Both of my properties are located in B class areas and I budget about 15-20% for cap ex and maintenance. I have found this to be my sweet spot for my specific properties.

Keep in mind, this is not taking property management and vacancy into account.

I also 100% agree with @Craig Schneider in assuming higher vacancy rates during this time.

@Jorge Rivera

I think if you are investing for cash flow then based on what you are saying it sounds like a good deal. If you look at rental rate data during the 08 recession rents slightly dipped in the following years but was fairly stable. If the deal pencils out assuming a modest drop in rents , then in my opinion it would appear to be a good deal. Additionally, regardless of an economic downturn, I always recommend assuming conservative rents. For example , I own a property in Indianapolis that on paper “should” have rented for $1200 but $1135 wound up being the right number. But that was ok for me because I had already priced in the possibility of receiving lower rents.

In regards to the BRRRR strategy, remember that accurately calculating ARVs on Long Island like in most places is highly dependent on location. For example, I own a property that I know would have appraised about 10-15% higher if it were not located on a busy road.

If you are banking on appreciation or an ARV that will support the BRRRR strategy I would suggest doing your homework on property values for similar properties in the immediate area. When I say similar I mean similar square footage, similar finishes, similar layout in the immediate area. If it were me, I would also not purchase the property unless I was comfortable with the possibility that you may not be able to refi all of your money back out and that rents may be slightly lower than what you expect. Also consider that banks will be tightening up their lending criteria.

@Jorge Rivera

What is your goal with the property ? House hack, Buy and hold rental, BRRR, Flip?

@Jorge Rivera

My guess would be about 10%. Then again maybe not at all. Supply is extremely low and city dwellers are migrating towards the suburbs which are perceived as safer and more stable in light of COVID-19.

@Alora Glaze

As an out of state investor I totally agree that Indy is street by street. I noticed this instantly during my first visit in December.

That being said, it does seem like even the c/d class areas are on the up and up. Are there any neighborhoods that you are specifically avoiding at all costs at this point in time ?

@Richie Thomas No problem. I looked at that same multi family a few months back but ultimately brushed it off because I’m terrified of being in or near a flood zone (I live on an island and have seen and experienced the destruction that comes with flooding). Let me how it goes if you decide to pull the trigger. I also like Broad Ripple and the surrounding area. I’ve been also noticing increased investment in South Broad Ripple or “SoBro” as some realtors like to call it.

Be careful and do your homework. Many properties in the Ravenswood area are located in or near flood zones. Search the FEMA FIRMS maps.

Hi Tyler,

I am also a Long Islander and just invested in my first out of state SFH property in Indianapolis. My research has led me to believe that Kansas City is a probably a better market for multi family compared to Indianapolis. That is not to say multi family investing isn't possible in Indy. The consensus from my network is that multi family units in Indy will experience more vacancy than SFHs.

They are also generally very old structures that are usually located in C/D class areas. My visit to Indy confirmed this. I get the sense that you will need to have the stomach for a major rehab and/or a less desirable tenant pool if you want to tackle MFHs in Indy.

Like anything else , I’m sure there are exceptions to these assumptions and will be curious to see what other BPers have to say.