All Forum Posts by: Teho Kim

@Adam Sankowski : My parents live about an hour away so I'll ask them if they can take a look. To be honest though, I don't see what I would be able to get out of visiting the neighborhood though, that I can't get from google maps/street view. 

Hi, I'm submitting an offer on this duplex that I believe has solid numbers. The thing holding me back is that the neighborhood may be iffy.

The Indy guide map from BP has this as a C class neighborhood. On trulia, however, it kinda seems the amount of crime would be closer to D.

I've attached an image of a map w/ the neighborhood in question.

I really appreciate any insights!

@Caleb Heimsoth - definitely trying to avoid d. I'll be asking around more local forums to get a better sense of the neighborhood.

@Richard Hall - The taxes are based off of 2% of the assessor property card value.

BP,

I got some incredible help on the last deal analysis. You helped me back out of my offer that I put in on a very marginal deal. I'm hoping you can help me with another analysis.

Indianapolis Duplex w/ each unit fenced backyards and garages; 2 bed 1 bath each; 1204sqft each.

Asking $129k

Approximate rent: Rent ready side $750, other side is currently rented at $650

Rehab: Rough guess $4000? Unknown, working on it - $650/mo side probably needs a few touch ups and backyard needs landscaping.

Neighborhood: C Class. I'm concerned about the crime map from Trulia (picture). But my agent says this is typical of anything near downtown; projected vacancy 6.5%

Taxes: ~$1300/yr

I really like the numbers on this one. If I fix up the one side and get $750/mo per side, I'm calculating a conservative $240/mo for the property in cash flow. What do others think? My only concern is the neighborhood; my agent says he owns a duplex 2 mins away but I know things can vary greatly block to block.

Is this a property worth pursuing?

Thank you so much for the guidance.

Taking a look at the numbers, I realize I was just trying to force something that's not there. So I've backed of the deal, and I really thank the BP community for helping me avoid that one. I'll be posting a duplex deal here shortly that I think the numbers make much more sense on, just not sure on the neighborhood.

@Sam Hopkins I'm going to have to agree with everyone here and say that there is just a huge opportunity cost. After expenses and even including amortization, the rate of return was more like around 10% if I remember correctly. If we factor in fees relating to selling the house, I don't think I'm coming on top on this one.

Right, there are no value add components to this house.

I've realized I rushed into this and told my REA to help me back out of my offer.

40-50$/sqft seems absurdly low, but I'll be trying to aim for those numbers in the future.

And I understand the mentality of waiting till the next downturn, and I'm sure that a correction is coming as well. However, I'm of the mentality that time in the market beats timing the market. 

I've yet to purchase my first home. I've looked around seriously on the MLS, analyzing deals, talking with my team members and getting their opinions. The problem is, deals on the MLS rarely cash flow $100 a month (and I am looking for >$150). I'm only looking at A/B properties; could it be that these are simply produce less cash flow than C/D properties?

I feel I am not concentrating my efforts correctly. Should I look outside the MLS? Perhaps auctions?

Any thoughts are appreciated.

Thanks @Account Closed, I guess I just needed to hear it from someone else.

Unfortunately, the answer is no to all your questions.

How often do you see a deal that cashflow like that? I've combed through the MLS and nothing comes close. Should I start looking into foreclosures and auctions?

As a beginner investor I could really use some extra opinions and see if I should be taking the plunge on this SFH.

I don't know if it was a mistake, but I submitted an offer and counter offer on the property.

$138,000 / 25% down payment

year built: 1967 

3 bed, 1.5 bath, 1 car garage

1316 sq ft

B location in Indianapolis ; projected vacancy: 5.4%

No/minimal rehab

projected rent: $1250

taxes: ~$2000/yr

My calculations yielded around $70/month for cash flow. I know that's not much, but should I wait for a better deal? Looking around and listening to podcasts, it seems like the first deal is just all about getting the experience.

Really appreciate any insights.

I'm nearly complete assembling my team in Indianapolis as an out of state investor. I've been preapproved by a place called MJW LLC, however am not seeing a mention of rates. Is this something I ask now, or will I be told what my rate is later down the road when purchasing the house?

On that note, I am not very educated on mortgages. Should I be going w/ an LLC? Would going to a big bank be better? Am I even limited to local banks or can I look outside of Indianapolis? And can somebody please educate me or point me in the right direction on what mortgage terms are good to see for an investor? Basically what am I looking for in a good mortgage contract?

I know this is alot and thank you for your answers!