All Forum Posts by: Marci Daugherty

Hi @Jared Fisher

I am getting ready to find out. In general , IN is more landlord friendly. STR too except certain pockets… e.g. Carmel… must be your primary residence.
Best of luck!

Marci

Yes, several areas will still make the 1 percent and definitely the 2 percent rule. Strong manufacturing with Lilly presence, Healthcare in Anthem, Salesforce etc. it is very street specific… e.g east/west of rural, south of 38th. Several surrounding areas great too. 

Well, I can say that living in Indy and driving to Chicago, it is definitely an arm pit. It is close to Chicago but when driving if you get off that exit which I did on accident once 😬, one thinks “war zone” and will I make it out alive. I did obviously. Now, if close by Merillville can spread its niceties to Gary, then perhaps. I guess you would have to be prepared for the type of tenants. Maybe it could be a Section 8 focus ???

Hello all, 

I am looking to be creative with my capital and flipping but also looking to move into a primary residence that can cash flow or flip.
- House: Carmel,IN , 5 BR 2 full bath .

- price/rehab: currently livable but needs TLC. PP (listed) 352. Rehab (contractor quote from the listing realtor) 60k for full flip. I walked and likely +10 for flip and for rental right now ... maybe 35k.

-ARV : mid for same sq foot, 4Bed 2/1 bath (closest comps) Last 6 months - 475 (flip ARV)

- Financing : originally was going to do FHA 203k loan, include 6 months mortgage in loan

- Rent by room strategy after minimum rehab: 1k per room. Minimum 3 at a time to be conservative as I will live there too. 

questions: 

1. How can I determine what to offer? is this good deal? I don't think one can calculate using typical flip 0.7 minis rehab since will live in At least 1 yr (RBR), 2 yr (flip and no cap gains). 

2. Owners willing to consider lease option or rent to own.... this seems great at first but I won't own it , no tax advantages, and wouldn't I have difficulty getting a loan for rehab? I am assuming they own outright so seller financing potentially. Can I get a rehab loan on this type of structure ?

3. Should I go with FHA even though that may be longer to close?

4. what else do I need to consider ?

Note: 

- supposedly a construction loan is due  upcoming due (per realtor) so how can they offer lease option ? What does this mean? How could this impact my negotiation. 

Thanks to all in advance !! 
Marci

@Matthew Porcaro Thank you very much for your reply. This information is extremely valuable !! 

I am in the Indianapolis area. 

I have a couple contractors I have referrals from so will start vetting them first. 

It sounds like it may take about 3 months to get approved. They don’t care what the purchase price is do they ?

How do you figure out if it is a good ROI as most BRRRR calculators probably won't work ?

I wish there was something to help you with in return for this information. Just let me know !! 

Take care, 

Marci 

@Ken M. Thanks. So much for typos. I meant I will need to include the first 6 months of mortgage payments Matthew mentioned above for the FHA 203k loan.

However, kinda funny is …yes I did actually wrap a mortgage but on a seller financing and not a subject to. Yes always a risk no matter what!! 

Thanks@Matthew Porcaro for all of this information. I know it's has been a while and can't believe there are not others posting about this strategy. I want to do the same thing and think I will have to wrap the mortgage since both sides not habitable entirely. A great up and coming area.

1. What questions should I ask the loan company about to know if they are capable and familiar with these loans 

2. so I have to find my own GC that is 203k loan certified ? The FHA housing consultant doesn't provide some options ? How should o go about finding and vetting contractors willing to do all the paperwork?

I live in Indy looking for live in fix n flip and regular Indy as well as Kokomo. Would like to connect . 

Thanks Bill. Good info. I sort of found the same answer for a SFH from Chat GPT. I wish a multi unit in this area is available... just not good pickings. I am not sure how to get around the credit score for him. I need him to determine if he has one and what it is. I did add him recently as an authorized user and since my credit score is high that should help.

Good luck with same situation for your son! 

@Denver McClure Thanks for the connection.