All Forum Posts by: Mihir Bhimaraju

@Johnathon Kim 

https://www.biggerpockets.com/renewsblog/guide-grading-indianapolis-neighborhoods/

 The link to the map stated above is a good starting point if you don't know the area at all. It'll help you get familiar with the names of the areas and general grading, but it's not to the block by block level as most developing metros are.

You could also look into city-data.com website and look at income levels of different neighborhoods. This will help you stay away from lower income/higher unemployment areas. If you need further help, feel free to hit me up. Good luck!

@Account Closed Have you looked into FHA loans? You won't be out of pocket by a whole lot. I think they can do 5-10% down payment.

@Account Closed indy has quite a few meetups. CIREIA, INREIA, local wholesaling meeetups, you name it. Check out the respective FB groups as well. There's always something going on.

@Zachary Schimenz  The key takeaways from my exp - have a PM that has an appetite to handle lower income areas. Having a PM just for the sake of having one won't help. PMs make or break a deal.
 

Just because it's lower income doesn't mean you get crappy tenants. Tenant screening is important. There are several tenants who pay on time, don't have evictions/criminal records but they can only afford lower rent homes. I minimize turnover costs by using materials that don't need replaced for every turnover, like using vinyl planks vs carpet. 

@Sinil Kim My 2 cents is to attend local meetups in your area and find out what your local investors are getting into. I've met an investor couple from NY who invest out of state. I'm pretty certain there are quite a few like that. Networking with investors that are already doing this would help you immensely. Learn from their systems, get recommendations on building your team and schedule interviews with agents/investors/managers etc before you fly out to the market you're interested in. I've seen a lot of investors buy properties far away without establishing a team and it's an uphill battle from there on. 

@Clarence Gong I've bought older homes as long as they don't look like they're from 1900s. They need to have upgrades done over time (plumbing, electricals, roof changes etc).  If the property is in bad condition or looks neglected, you're going to invest a ton in rehab and upgrades. I also don't prefer century years old single families that are converted into multiple units. I haven't seen good workmanship in a major chunk of these converted homes. 

If you get a detailed inspection done and the inspector has no issues with the property, I personally go ahead and make the purchase. 

@Account Closed connect with investors in your backyard and see what's working or not working for them. There are a lot of folks who invest in all the markets mentioned above. They've done research and built teams. You can network with them and see if they'd be open to guide you in the right path and help share their network with you. That would prevent you from having to do all the work yourself. 

@Teo Wei han the link to the map stated above is a good starting point if you don't know the area at all. It'll help you get familiar with the names of the areas and general grading, but it's not to the block by block level as most developing metros are.

You could also look into city-data.com website and look at income levels of different neighborhoods. This will help you stay away from lower income/higher unemployment areas. If you need further help, let me know. Good luck!

@Account Closed there are several factors to think about. Is the agent familiar with investment properties and running numbers? Have you guys talked about the realistic returns in A/B areas vs C areas? In short, if you're shooting for nicer areas with good school systems, you'll be expected to pay close to retail price (for on market deals). It's not always you'll find 1% deals in the higher end areas. Your agent needs to work with you in finding a trade off between nicer areas and deals with good returns. 

Have you looked into the off market situation? You'll have to put in some work in most cases but you can find discounted properties that'll get you better returns. From my experience, I've bought quite a few off market  & on market deals over the past few months and the returns are as expected based on the neighborhood I got into. More established neighborhood = consistent returns, better quality of life,  1-1.3% rent/price ratios. Gentrifying areas = in the path of progress, higher returns and > 1.5%.

Feel free to reach out if you have questions. Good luck!

@Ty M Kuntz  I might have something for you :)