All Forum Posts by: Steve Lehman

Steve,

I normally would post the address but because they involve a few of my investor/customers I cannot. But I can offer another option take a look on Zillow or any MLS webpage look up "Union Street" in Indianapolis recently purchased over 6-14 months. I have worked with Beau Matlock and a few other agents in and around Carmel and Indy in general.

I am always looking to connect and work with other agents in Indy be great to network! send me an email!

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $285,000
Cash invested: $75,000

Duplex in broad ripple. 2 1/1s with unfinished basement on each side. Renovated one side and increased rent from 875 to 1400. Other side has a lease until 1/2026

Chris,

Your criteria matches about 80% of my investors who live in states like CA, NY, TX, AZ, CT and NJ. Most of these states have extremely high price points, taxes, and in a few a lack of inventory. The top (3) states that always stand out and match your price point, have steady growth, and very strong ARV potential would be Indiana, Ohio, and Florida.

I just closed on a property in Indianapolis fairly close to one of the Universities and it was a complete renovation. Purchased for $70K put in little over $40K in renovations and in 6 month the appraisal came in at $240K on a single family. It opened up an opportunity for a cash out refinance to pull out rehab costs and enough for another down payment on another REI.

The best way to build a team for your Network is here through bigger pockets. I found great agents, GC's, Builders, wholesalers, and more in the forums or by asking seasoned people. I have over 20 year in both the REI and finance side of things so if you ever have any questions or need any tips or neighborhoods to choose from let me know! Always happy to help other BP members.

@Steve Lehman  I"ll be attending the BP meetup tomorrow downtown.  Hope to see you there.

Thanks Drew!

Everyone should know, however, I'm not presenting any real estate deals I have done.  We have people that are relatively new to real estate showing their deals.  They did it right.  Their returns are fantastic.  We want to show more people how to start off doing it right too.

That attitude, your limiting beliefs Sam, is why your a ragging failure. 

And will continue as that failure, no matter how "perfect" things ever are. 

It's a you issue Sam, not a market thing. Until you grow up and realize this, well, your gonna have no shortage of content for your marter complex. 

Come down off the cross, build a bridge with the wood, and get-over-it........

Success and victories are MADE, never discovered. 

@So Jin Kim

Hi and welcome! Congratulations on both your first steps into real estate and your growing family! What a beautiful time to be laying the foundation for a more intentional future.

Your story really resonates. So many of us come from traditional paths - school, career, structure - only to realize that time freedom and flexibility are just as important as financial security. The fact that you're recognizing this now, before the baby arrives, and taking action toward it is such a smart and empowering move.

The markets you're considering - Detroit, Birmingham, St. Louis, and Indianapolis - are all solid, cash-flowing cities with proven investor success. Each has slightly different characteristics:

Detroit offers low entry points and high rent-to-price ratios but requires strong property management and careful neighborhood selection.

Birmingham has a strong economic foundation and is in a landlord-friendly state, which many investors appreciate for long-term stability.

St. Louis is known for its diverse housing stock and stable tenant demand.

Indianapolis is often called one of the most balanced investor markets - it has affordability, cash flow, and a steady population base.

Since you're planning to invest out of state, your biggest asset will be your team - an agent or provider who understands rental-grade investments, a trustworthy property manager, and reliable contractors (if needed). These professionals can make or break the experience, especially when you're managing from a distance.

You’re absolutely right to seek out people who share your long-term mindset. The best partnerships come from shared values, not just shared spreadsheets. Many of us in this community are more than happy to help or point you in the right direction, especially because we've been in your shoes not that long ago.

Wishing you the best as you build something meaningful - both financially and for your family.

Reach out if you want to chat more about specific markets or run some numbers on any deals. Excited to see where this takes you!

Best of luck,

Melissa

@Daniel Watson,

First off - huge congrats on closing your first deal, especially on an owner-occupied duplex with just 5% down! That’s a solid way to house hack your way into the game, and it’s clear you’ve got the momentum and mindset to keep going. 

You're not alone - many investors with student loans or early-stage mortgages face this exact challenge. The good news is: there are ways around DTI limits, and it doesn't always mean putting your investing on pause.

 A Few Options to Explore:
1. Let the rental income help your DTI - even if it's not "seasoned"
If you’re living in one side of your duplex and renting the other, that rent can often be counted toward your income, depending on your lender and whether you’ve claimed it on your taxes yet. Some lenders will use projected rental income (from an appraiser's rent schedule) even if you haven’t been renting for a full year.

2. Look into DSCR Loans (Debt-Service Coverage Ratio)
These are designed specifically for investors and don’t look at your personal income or DTI - they look at whether the property can pay for itself (i.e., does the rent cover the mortgage and expenses). If you’re buying a turnkey cash-flowing property, DSCR loans can be a great fit, especially for those with higher student debt or irregular income.

3. Buy in lower-cost cash flow markets
You're already thinking turnkey - which is smart, especially if you're trying to scale with limited time or capacity. In Midwest and Southeast markets (think: Indianapolis, Birmingham, Cleveland, Memphis), you can find fully rehabbed, tenant-occupied properties for $100K–$150K, sometimes less. These often come with strong rent-to-price ratios and are a great match for DSCR or portfolio loan options.

4. Partner with someone
If you're open to it, consider bringing in a money partner or co-borrower for your next deal. You might handle the research, market selection, and operations, while they bring capital or stronger income/credit. Just be sure to formalize the arrangement!

Should You Wait and Pay Off Loans First?
Only if doing so aligns with your long-term goals and you’re not delaying your investing journey unnecessarily. You’ve already got great momentum. If you’re comfortably managing payments and there’s still room to take on another property using the right financing structure, it may be more powerful to use your capital to acquire income-producing assets instead of sinking it into low-interest debt.

That said, it always comes down to your personal risk tolerance and how much flexibility you want in your finances.

You’ve already done something most people never will - you took action and closed on your first deal. Now it’s about finding smart, scalable ways to keep growing despite the debt. You can do it, especially with tools like DSCR loans, turnkey rentals, and strong property management in the right markets.

Feel free to DM me if you want help comparing loan options or evaluating some turnkey properties — happy to help however I can. 

Best of luck,

Melissa