All Forum Posts by: Ross Denman

I PM'd you with a local Indianapolis credit union who will refinance in to one portfolio loan for local properries. I have seen them work with out of area investors, but they've always had local LLC's.

I know a couple here. Are you looking for inventory for rentals or just need comps and listing agents for flips? I'll PM you with some more info.

I am in Indianapolis and I always recommend my clients to have commercial real estate insurance. If home owners insurance realizes that you are renting your property there rates will usually go up higher than companies who specialize in rentalsrentals anyway. If they are not aware, they may not even cover some issues either. Traditional home owner's insurance isn't always comfortable with the new liabilities that comes with rental properties so their coverage will likely be less and the policy may end up being more. 

If you talk to an agent, they should should be able to create a policy that takes your living in one of the units in to account as you may be able to help mitigate some risk. At the end of the day, it will always cost more to protect yourself against unknown people, even if you live in the same building. 

Anton, 

You're in the right place for direction as there are tons of resources and opportunities here. The first thing that I would recommend will be to start positioning yourself some you continue to study. While there are certainly ways to get started with almost no money or credit, at the end of the day you will find more opportunities when you have either or both.

While are getting yourself there, network and find a mentor. Most of us enjoy sharing our knowledge, experiences, and stories. 

Don't get roped in to spending 10k+ on an educational system as you can get the same resources for free elsewhere. Some of the best material that I have run across are the books offered on Bigger pockets, the blog posts, and especially the podcasts. Most everyone around has been motivated by Grant Cardone's podcast last year... I think it is podcast 108. Highly recommended for motivation.

Welcome @Janell P. There are some decent systems out there, but I have never found any information that I couldn't find for free... and usually here. There is a wealth of experience here and plenty of opportunity. Don't be afraid to ask questions. Listen to the podcasts. Read the blogs. and get your personal/financial life in order. I really recommend the Grant Cardone Podcast... one of the most inspirational podcasts yet. 

https://www.biggerpockets.com/renewsblog/2015/02/05/bp-podcast-108owning-350-million-real-estate-10x-rule-grant-cardone/

Hi Logan. Welcome to BP. 

Welcome @Jason Schwab. If you are looking to cash-out refi the homes I can point you to a local credit union that has been fantastic with several of my clients. While it would reduce your immediate cash-flow, it will help liquidate some of the equity to continue to invest and diversify your risk. Just don't over-leverage and keep money set back for reserves.

On a side note... I agree with @Mike D'Arrigo as the neighborhoods can vary quickly and duplexes can be tricky. I just spoke to a client who was looking to purchase a duplex in South Broadripple. Currently, she owns two newer suburban homes that rent for over $1400/mo each. These don't have near the risk or headaches as the duplex that she was looking at. Older homes tend to have more maintenance issues. The tenant demographic can vary throughout the city and the highest quality tenants aren't usually looking for a multi-unit. Multi's can be great for cash-flow and risk diversification but do have a different form of risk than other types for residential housing.

We have been recommending all of our clients without A/C to start putting back money and planning to install Central A/C in the near future. While we do realize that the immediate return is not validated by installing Central Air, there are other things to take in to consideration.

1. The home may sit longer on the market as the homes with C/A may rent first.
2. The quality of tenant that you are getting are the ones settling to live in the home without A/C
3. Most tenants don't stay for more than 1-2 years in a home without A/C.

Most homes in Indy offer Central Air nowadays. Probably about 60+% in the C areas as well. Drawing and keeping quality tenants is one of the most important things you can do to stabilize your portfolio over the long run. If you are turning over poor tenants every year, you will be spending far more than $1,500-4000 over the next 2-3 years on reconditioning and vacancies. Not to mention the other frustrations that come from having lower quality tenants in the home.

While our property management company does inspections and our inspections match a home inspectors list by over 80% or more, @Troy Fisher hit the nail on the head. Our inspectors may "peek" in to an attic or crawl, but never any real penetration and rarely with moisture readers. Our inspectors are also not allowed to get on a roof (for liability reasons.) I recommend to all of my clients that they should get their homes inspected before closing on a new property.

A prime example of this was... a NY investor that we work with was purchasing a newly rehabbed home. It looked great, but there was a little bit of a damp/musty odor in the home. Our inspector was there at the same time as the home inspector. When the home inspector physically entered the attic space and started poking around, he found quite a bit of raccoon feces. At some point before the home was rehabbed, there must have been a break in the soffit or roof area allowing rodents to enter the home. For those of you who do not know, raccoon feces can carry some very nasty bacteria and parasites that are very toxic and may cause brain damage. Not the kind of liability that we want any of our owners to face. The buyer had made a concession to have the rehabber higher a hazardous waste removal company remove the waste, dispose of the insulation, verify the quality of the air, and install new insulation in the attic. Personally, I always recommend my clients to get a certified home inspection before finalizing a deal. The potential liabilities can be enormous and can change a deal from great to devastating.

The most important thing that I try to teach my clients is to identify and mitigate risks as early as possible. This 4 letter word is the most important concept in any investing... especially real estate. R I S K