All Forum Posts by: Seth Greiner

I'm not an expert on the this area but from what I've heard if you were on the south side of 10th and west side of Rural this would be a better deal. 

As far as the deal in general going in with rents less than $700 would turn me off, this tends to be my cutoff line where the tenant quality seems to drop.  That being said if it needs no repairs (rare) then the price wouldn't seem like it was particular low or high.  All in all I would consult with the property manager you plan on using and see if they think this is a good area.  

@Larry Fried @Rodney Kuhl

Thanks for the responses Larry and Rodney.

Rodney- basically I would be relying on 75% of the appraisal amount of after repair (about 86k) in order to put the least amount of cash down. I am expecting a 5% loan for 30 years, don't think this should be a problem.

Assumptions are : 1100 rent - 45 vacancy -130 taxes - 55 insurance - 100 repairs and cap ex -110 management (will be self managing but I like to add this in)- 460 loan= 200 cash flow

Larry - I was factoring on all the numbers (perhaps a little low but that is part of what I am asking).  You are right in the fact that a lot of the deal depends on the appraisal, it is probably my biggest worry on it.  I am not bothered by bringing more cash but I don't like that it makes the deal worse.

The property is on the west side of Indianapolis off of 10th and girls school rd. I plan to rehab, refi, and rent it for 3 to 5 years and then sell.

Purchase price is 77k 

Repairs 18k

ARV is 115k

Loan costs 5k

Rent 1100

After refi I should only have about 9k left in the deal

Cash flow after mortgage and expenses should be a little more than $200 per month

I am having a little analysis paralysis on this and would like some advice if I should proceed with deal as is.

Do you have a checklist you use to verify your numbers are correct after you have an offer accepted? I'm trying to create a list I can go to verify I want to go forward with a deal. Please help me in adding to the list. Preliminary list looks like this:

Income- verify rents and check comparables to check condition of homes versus how I will rehab

Rehab- recheck costs and condition (focus on hvac, plumbing, roof, electrical) to see if I missed anything, check health department for outstanding orders, check code enforcement

Expenses- verify taxes (recalculate for investment property if necessary), verify insurance, check for HOA, check for utility cost even if I will not pay them (high bills could indicate faulty systems)

Help me determine what I missed!

I have used Griffith Law Group -Drew Strobel. He helps host MyINREIA and provides great content at the meetings.

I did one with her back in December.  Her email is [email protected]. 

I use all of the strategies that Marcia listed. The introduction letter I use introduces them to my management style (i will also do this via phone) and asks them to verify there are no safety hazards on the property. When my repair guys go the fix the deferred maintenance I have them do a walk through inspection with pictures just as if the tenants just moved in. In most cases that I buy from landlords they do not have any documentation except for the lease.

@Michael Medeiros 

@Tammy Bond 

Did you ever follow through with this company or another one? I am interested in a business LOC to further my real estate goals.