All Forum Posts by: Matt Walker

@John Kim If the ADU can be a rental or have rental history it can be worth a lot more based on a CAP rate. If it's just utilized as an ADU, it will be worth only based on sales comps and present condition.

@Paul Farmer @Paul How much will you incur with remodel expenses (capex) when you take possession? Will the rent be $2100 gross total after all remodeling or before? Are there any HOA? They pay all utilities or you pay some?

@Steven Jackson I wouldn’t do anything until they’ve filed an eviction and a court date is set, because as is true, possession is 9/10 of the law. Lease or no lease. It all has to be done through the court. The only way I’ve gotten squatters out before is made sure no one was in the house been gone in and changed the locks or boarded the doors up. But since you don’t own it you don’t have that control yet. So depending on how long it would take a civil case to be processed, you might be locked up for a while and with holding costs that could see you losing money quickly. especially because the courts are just starting to reopen and hear cases in many states, who knows how long it would take for that case to be filed, served, then put on the docket, then evection granted, then a sheriff showing up and actually physically kicking someone out.

@Michael Ohman Hey Michael, we lost contact since this last deal I had. Let’s setup a call and catch up on what’s new in Indy!

@Hendra Lim Welcome to the Indy family Hendra, hope you find exactly what you’re looking for here on BP!

@Christopher Powers sounds good so far, what’s your purchase & rehab costs (the all in) and gross rents?

@Jason Cunningham I agree with Christine. We write our leases to say due on the 1st , late on the 2nd as well. $25/day late fee thereafter. And our rents are paid via EFT so should never be late anyway. Worst case scenario, if someone called and said they won’t have rent available to pull via bank acct, we could suspend the EFT & they’d have to pay late fees via Zelle, Venmo or Chase Quick Pay anytime after the 2nd.

Zoning is correct first. Then if it's OK to convert, look at your numbers. What is your CAP rate as an SFR vs a DUP? Take your expected net rents of each (gross rent/mo minus est. 30% for tax,ins,mgmt,maint & vac) unless you will manage it yourself then leave that 10% in. Multilpy that by 12 months for annual net retns and then divide by your 'all in' dollar amount for each 1) leaving costs of as is SFR or 2) cost to buy & convert to DUP. Which is higher? That gives you the best way to analyze the deal. If you're still not sure, I'd be happy to walk you through the numbers any time.

@Manju Shackett First lesson in RE investing, you don’t need an agent to find deals, because they don’t very often have access to good deals. The best deals aren’t listed on the market, they are off-market wholesale deals.

@Mindy Jensen Hi Mindy, do you invest out of state as well?