All Forum Posts by: Peter Stewart

Cole I put each of my properties into separate LLC's. Sure, you can still find me if you do some digging, but it at least it makes it harder to find.

I used to. Big mistake. Nothing worse than getting texted a million times by tenants about stupid stuff. At night. On weekends. Holidays. Etc. Don't do it.

I self manage my properties. After a bad tenant eviction, and a lot of reading on BP forums, I've decided to distance myself as the owner. I started a property management company (which is easy as registering an LLC, opening a bank account, registering a website, and setting up gmail and google voice accounts).

So, I can now introduce myself as the property manager (since it's true). And, I can give out a separate email and phone number (and only have 1 phone).

Bank of America used to have a great physician loan, but it was for owner occupants (so limited to house hack). Pretty sure some form of it is still around. It's been about 4 years since I had anyone use one.

Wells Fargo also does non-owner occ HELOC's. 70% LTV. I've got them in place on two properties I own.

I just had to evict a bad tenant as well. I hired a local real estate attorney that specialized in them. They took care of it very quickly. Within 3 weeks of contacting them I had the eviction hearing. It was on a Thursday. The jugdge gave the tenant until the following Monday at 5pm to be out. And if they weren't, I could call the sheriff and have them escorted out. Luckily they were out by that time so it didn't go that far to me.

There is a lot of great advice on here, but a lot of it is very specific and may not pertain to your situation. The rules, laws, and procedures vary state to state, city to city, county to county, etc. Like others have said, just hire a good, local eviction attorney and let them do their thing. If the tenant is truly in the wrong and you have proof, and you have not done anything wrong as the landlord, it should be a pretty open and shut case in the eyes of the law, and the system will get that tenant out of your property. 

I am going to respectfully disagree with those who are telling you to stay away from properties like this. I have many out of state clients who purchase the cash flowing SFR and multi's in the C areas and they make good cash flow. The two keys for success are: 1. Getting the right property management company in place. And, 2. Buy in the right C area.

But of course, properties like this are going to come with challenges. That's the nature of the beast. What do you expect for $50-70k? That's why they typically hit 1.5-2%.

In my opinion, 2226 Goodlet is closer to a D area. It's too close to 10th and Tibbs, which is the Haughville area and it's a warzone. One of the worst parts of town. I know it's by the 500 track, but I don't see the path of progress coming this way for some time (unless Amazon comes to town and builds their campus on the W side). My clients typically look at the near eastside (Windsor Park, Little Flower, St Clair Place, etc). There is a TON of redevelopment going on all around there, it's close to downtown, freeways, etc. 

Also, for C- areas you should be getting 1.5%+. 1% does not build in enough reward for the risk and hassles you'll encounter with tenants and property maintenance (they're mainly all older homes with varying degrees of deferred maintenance).

Have you read through this resource thoroughly?

https://get.biggerpockets.com/nomoneydown/

@Jaron Walling I love MFC. I invest there myself. I have two lots I'm going to build new construction on. One on Ruckle, the other on Talbott. I have clients who have flipped multiple properties there as well. 

I think the area is only going up, especially with all the money getting pumped into Midtown (https://midtownindy.org/economic-council-mec/). I think the Red Line will also help. 

https://www.hockerlawfirm.com/

Totally agree with Neil Goradia. We always hit a slump in August due to back to school/end of summer. Things usually pick back up after Labor Day.

But...with that said, I am noticing some slow downs in the market that may extend beyond the aforementioned reasons. Can't quite put my finger on the reasons yet. I do agree with Harvey as well that some of it has to do with the rapid price increases on the investment properties over the last couple of years. $40-50k flips are now selling for $90-100k - nearly doubled in 2 years in some areas.