All Forum Posts by: Neil Goradia

I agree, definitely business expense for me.

Just be open and honest with your tenant. Tell them you drove by and saw a cat in the window, and ask them to explain what is going on. They need to agree to remove the cat within a short amount of time, otherwise you can say that they are in violation of the lease agreement. Contrary to popular belief, you can evict even if they are paying on time, if the property is getting damaged. Hopefully it doesn't get to that point. By the way, cat urine smell is almost impossible to remove if it seeps into the floors. Act quickly!

It's a decent area in my opinion for C rentals. 

If you need help, I am a realtor. Just give me a call or send me a PM!

Hi @Damian Robinson, I agree with @Phil DuChamp. I mainly invest in C areas and have property primarily inside the loop. I also have a few outside the loop in Lawrence, but I'd still consider them C areas.

The problem you may encounter is that these areas are the easiest to purchase and rehab and sell to out of state investors. Many turn key companies will sell them to you at a premium. The better way to do it in my opinion is to spend a few hundred on a plane ticket and drive around the area yourself and make some offers. You will come out way ahead.

There was an interesting post a while back from Ben Leybovich about "why" C type properties are not good investments if they don't make at least $1,000/month in rent. His reasoning is that if you calculate the CapEx for all major items in a house and reduce them down to what their monthly cost would be ($4000 roof every 25 years, $500 water heater every 6-9 years, etc), you will find that you will be in the red. While I think it has its merits, it has not been my experience investing in these areas. There are a lot of variables in those calculations so depending on how conservative you want to be I think you can do just fine.

@Brett Snodgrass I feel like most of the out of state investors I work with are more on the conservative side and looking for A/B areas. There are some good deals in southport, decatur, greenwood, chappel hill that meet the 1% rule. If they are ok taking on a little more risk they have expressed interest in eagledale, beech grove, lawrence,  and pike. 

In addition, many are uber-conservative when calculating expenses (30% for Vacancy, Maintenance, Management, and an additional 2% Purchase price per year CapEx). With those types of expenses ROI doesn't look that great. So the key is to communicate a more realistic expense scenario for the investor depending on what you feel like the area warrants.

Hi @Lou Ruggieri, congrats on getting your deal under contract! What did you need the attorney to review? I know in some other states it is common place to have attorney's involved, but in Indy it is not typically done that way for single family or small multi-family homes. In fact the only time I've gotten an attorney involved was for a land development deal I had a few years ago. Just trying to save you some trouble. Let me know if I can help in any way.

@Garlin Smith, I would agree with what Jennifer says above. While some turnkey operators may be what you're looking for, I've found a better fit with a local investor/agent that knows the neighborhoods well and can find off market deals without trying to up-sell. Let me know if I can help in any way. Thanks.

@Al D. Just sent you a PM.

I agree with everyone above. The location is not good. If it was south of 38th even, that would be an up and coming area (mapleton fall creek). Layout wise, I definitely think you should move the stove/microwave, without question. It looks very awkward. The bathroom looks a bit strange as well with there being so much space between the vanity and toilet.

Regardless of everything above - this is a learning experience for you. I'd just drop the price more aggressively until you get an offer and move on to your next flip. Winter is coming - and buyers don't look after Thanksgiving.

@Robert Blocker, the way I've done it is: I provide the lead to the wholesaler in the city that the property is located in (in this case, find a wholesaler in NJ). He advertises the house to his buyers list and once he finds a buyer, set up the closing so that the profits gets split between both of you on the HUD statement. You get a check mailed to you, and he gets his at closing. Hope that makes sense. Make sure you find someone you can trust and that wants to build a relationship with you. If they know you will be providing them with more leads every day they would love to work with you.