All Forum Posts by: Lee Smith

@Brandon SanAgustin

Which part of Indiana are we talking about and what are the liens for?  Code enforcement has recently changed the way they are doing things in Indianapolis.. They are levying fines on properties, and then if you get the issues resolved they are saying they will remove said fines/liens... I have a property that they tacked 3k on to the property for nuisance fines, but supposedly after I get the garage torn down they will go away.. I haven't finalized this deal yet, so unsure if it will happen the way they say, or not. It's really weird at this point..

Also, the fines should not follow the person, they should stick to the property.. If you go to purchase the property though, the fines will need to be paid before title can transfer, or the new owner will need to accept responsibility for them.

@Alain Perez-Majul Yes, Indy is very strong market.. I work with a lot of investors both foreign and domestic, and we are getting more investors all of the time... Do a search of the forums for Indianapolis information.. You will find a lot of people who have researched the Indianapolis market to death and can give you ALL SORTS of statistics..

My one(or two+) words of caution is to do your due dilligence..

• There is a TON of people selling properties here giving inflated values on both sale and rental amounts.. I would HIGHLY suggest you get with 2-3 Realtors and pay for CMA's.
• Check with some property managers to see what rents should actually be.. A lot of turn key guys will throw a body into a property so they can show inflated rents.. Make sure that if a property is rented, that you can rerent it, at the same price, if you need to. Don't fall for the "Section-8 rents are blahblah" trap.. Know the ins and outs of section 8 before you count on getting those rents. I am not a fan.. hehe
• If you can fog a mirror in Indiana, you can get your general contractors license. Literally you need a general liability policy, workmans comp policy, and a 10k bond and you can get your GC license... So research your contractors as well!

All that being said, Indy is a great market.. Just make sure you have a good team in place... As others have said Indy is VERY MUCH street by street.. I have a rental with an address of 3212, and it rents for $650 a month.. 34xx addresses can rent for $800+.  

You need to figure out your goals and your risk tolerance... You could do flips or rentals.. You could go Single family, or multifamily.. You could go low income or bread and butter... 

Single families rent quicker and have tenants that stay longer than mutifams, but your cashflow is lower. Multifams take longer to rent, and you get quicker turnovers, but you get higher returns...

You need to decide where you want your rentals to be.. You can get higher returns in lower income areas(40-80k), but you won't see appreciation, and you will have more hassles with tenants. Bread and butter neighborhoods(80-125k) will see appreciation and better tenants.

Are you planning to get loans on properties from the get-go, then you need to find houses in better shape(will cost more) and there is minimums most banks will lend (40-50k). Banks don't like houses that need work, and that's where the best deals are at. Cash buyers and people not afraid of work(or hiring contractors) are the best deals, but not everyone can be a cash buyer..

@Stephen Stepp @Avi Garg and @Larry Fried I do have all of the move-in videos for all of these units I am uploading and can give you access to view if you are interested..  Just shoot me a private message please.

Welcome to the site!  I am in Indy, and shoot us your Indy deals too.. See, already setting up your buyers list!

@CJ Sanders Small towns are a bit tougher to do out of state... You are going to need a strong source for a property manager...

Another thing to consider is the multifam side of things.

When dealing with multifams, you need to be aware of a couple of different things though.

• Higher vacancy rates, instead of 2-4 weeks to fill a single fam, you are looking at 4-8 weeks to fill a multifam. Small town you may be looking at even higher timeframes. Ask a property manager. Hopefully you can interview more than one.
• Higher turnover rates.. While my single fam renters generally rent for 3-4 years on average, my multifams only rent for 1 year on average.
• Watch out for owner paid utilities. These can break the deal. While water/sewer is easy to deal with, anytime you are paying for heat you are looking for trouble. Residents crank the heat up in the winter and then open a window to cool off...

I am not trying to scare you off, just you need to budget for them.

@Jack Taylor @Alex Buscaglia Indiana is definitely very landlord friendly..

Indianapolis is only 3 hours away and we have a lot of multifams available.. Good profit available on those as well.. I work with a lot of domestic and international investors buying here in Indy... We can handle helping you buy, rehab, manage, and sell.. So any part of the puzzle.

When dealing with multifams, you need to be aware of a couple of different things though. 

• Higher vacancy rates, instead of 2-4 weeks to fill a single fam, you are looking at 4-8 weeks to fill a multifam.
• Higher turnover rates.. While my single fam renters generally rent for 3-4 years on average, my multifams only rent for 1 year on average.
• Watch out for owner paid utilities. These can break the deal. While water/sewer is easy to deal with, anytime you are paying for heat you are looking for trouble. Residents crank the heat up in the winter and then open a window to cool off... 

I am not trying to scare you off, just you need to budget for them.

I have some friends who are doing some really good deals in South Chicago suburbs, but they work in single fams.

@Stephen Stepp @Avi Garg and @Larry Fried

Forgot to add you to the last post...

Yes, would be open to selling outright... 

Here is a video to a vacancy we recently filled.. It's the video I referenced above...

https://www.youtube.com/watch?v=Bv73CNYvGrM

I am going through my other move-in videos for this property and will upload those as well... 

Yes, would be open to selling outright... 

Here is a video to a vacancy we recently filled.. It's the video I referenced above...

https://www.youtube.com/watch?v=Bv73CNYvGrM

I am going through my other move-in videos for this property and will upload those as well... 

Hey folks, Lee Smith with Spouses Buying Houses. Below is a service we offer our clients who buy here in Indianapolis Indiana (Indy) to help them with their investing needs.

If you are looking for buy and hold or for possible flips, THIS IS THE LIST FOR YOU!

Daily New MLS Listings Email – $50 a month via PayPal – I have a person who screens out properties that are listed, on the MLS, every day looking for listings, that are 10, 20 and 30+% below tax assessed values.

We put 3-4 properties a month under contract from this list! So it's definitely very useful!

You will get an email daily. In this email will be:

• 5-10+ possible properties that are listed at 10-20. 2-=30 and 30+% off the tax assessed value. All color coded! These are properties that were listed 1 day ago. So fresh listings!
• A spreadsheet view giving basic info about the properties we found as possibilities.
• Agent to agent remarks. This is the stuff agents tell each other about the home.
• A CMA for each possibility. We generally charge $5 for each CMA we complete on a property.
• We also send you wholesale deals that we have filtered as well! 

If you are interested in a property we will go take a look at it for you!

Once we go look at it, we will provide you with:

• a video of the property. We will video all the issues we see and our general thoughts on the property. We generally charge $100 for this video service, but it would be included with your monthly fee for free.
• a rough estimated cost of repair.

THE ONLY THING SLOWING DOWN YOUR INVESTING WILL BE YOU!
We do require that if you get a lead from us that you will use us as the agent to purchase said property.

For this service: There is no contract to sign, and you can cancel at any time. Ask us for a free sample if you like.

Sign up via paypal on our website: SpousesBuyingHouses.com/InvestorsIf you would like a CMA or to use our video services outside of this offering, you can do that on our website as well!

Here is a video showing the daily list and how to utilize it.
https://www.youtube.com/watch?v=eb7KVDbtimk

Here is our Daily New Listing FAQ as well!

http://spousesbuyinghouses.com/daily-new-listings-faq/

SELF DIRECTED FOLKS!!!! We will hold non-recourse note on this property.

This is TWO fully rehabbed duplexes on the same lot and fully rented.. This is as turnkey as it gets and has proven numbers. I have owned for the last 2+ years.

Buy it outright and reap immediate results for this cashflowing property. We can handle the property management for you?

Seller Financing Available(non-recourse for the Self Directed Folks): $40,500 down gets you $300+ cashflow after holding costs AND debt service. We will even handle property management for you! Depreciate the asset and even better for cashflow. 

See attachment for current cost breakdown.Two duplexes on the same lot.

FULLY Rented.. The last time we had a vacancy we had over 10 applicants.

These units all have:

Solid brick exteriors.

2 bedrooms 1 bathroom.

Washer drier hookups in each unit.

Hardwood floors throughout, recently refinished.

3 of 4 have new furnaces. One unit has new central air in last year. Rest have wall mounted window units, so easy to replace as needed.

New roofs last year.

New 6" seamless gutters in the past month.

On a quiet cul de sac in a nice neighborhood.

Tenants pay ALL utilities and have their own trash bins.

Our leases are 24 pages long. Include 3% annual rent increases. Make residents responsible for pests and rodents. Have lots of protections for our owners.

Here is a video of the most recent vacancy we had. This is the quality of all of the units.

Seller held note info: 30% down($40,500) 20 year term at 8% interest fixed. No prepayment penalty.

There's even room on the lot to add another 1-2 duplexes.