All Forum Posts by: Richard P.

I have a tenant which just informed me that their new neighbors next door are parking their cars in my tenant's backyard, blocking the driveway, stealing their kid's bikes, etc. These new neighbors are just causing all sorts of grief around the neighborhood and moved in about a month ago. The tenant called because she doesn't want to have any more trouble with her neighbors and wanted to ask if I would allow her to have a dog or to fence the backyard. I'm planning on talking to the landlord to see what we can work out, but I'm not sure how the conversation will go. How would you handle this situation? Anything to do or not to do?

I'm new to the Indy market and wanted to get a feeling for what utilities are covered by the landlord vs. the tenant.  I know this probably differs between single and multi family homes, location, and rent price, but I was hoping to get some input.  Thanks in advance!

I think I followed all of the numbers except for the $100k credit with the $890k contract.  Could you elaborate on that?

Thanks everyone!  I don't have a specific area in mind just yet.  Just trying to get a general feel for the market so I can make sure I'm negotiating correctly when we purchase in a few months.  

The Trulia crime heat map makes the Bates-Hendricks area look like some terrible place, but I know a lot of investment activity has been going on there.  Does anyone have any experience with the area?  How safe is it?

@James Ihssen Great comment! I guess the key would be to acquire the property at a good price such that its value can be improved enough (I'm guessing primarily through rehab) to refinance through more conventional loan methods. 

As an aside, supposing that I can get close to %100 percent financing (because the deal is so good) from a private investor, is it more typical to pay for the rehab costs with your own money?  Are there cases where private lenders will fund both the acquisition and some rehab?

Thanks @George Despotopoulos for your comments on financing companies -- good advice.

Do you have any comments about how individuals are usually trying to invest their money?  It sounds like, from your previous answer, most financing companies are just looking to service a loan and don't take an equity stake.  Do you find that to be the case for individual lenders (e.g. individuals of high net worth)?  Do individuals generally charge some sort of application/origination fee?

@Joshua Johnson Recently had similar feelings, but successfully purchased my first property 6 months ago. I had quite a few sleepless nights through the process, but now I'm confident I can do more deals. I'm taking the baby step approach, started with an inexpensive single family and hoping to do a more expensive multi-family. If Utah is too tough, try a different market. It may be cheaper to buy a couple of flights to get a good deal than to buy bad deal nearby. You can do it!

Does anyone know what current cap rates are in Indianapolis?  I'm hoping to buy a mult-family unit and want to have an idea of current rates.

If I want to buy and hold a property and would like to use private money, how are those deals typically structured? Do private investors want an equity stake? Provide a short-term loan? Long-term loan? Something else?