All Forum Posts by: Jeff Wallenius

@Bryan Atkinson I have one single family house remaining in Dallas and have had good success with those. I am getting $1350 for my 3 bedroom house, however I was getting $1550 for a similar one a block away. The current tenants I have are fantastic so I am hesitant to raise rents on them. I am actually thinking of selling that property as I now live in Indianapolis. Price point would be around $220K and it's completely renovated.

@Benigno Cunanan everyone has their own rating scale for neighborhoods but I would personally classify this neighborhood as a C. The schools are not great which I believe creates less stability for your tenants. The surrounding areas of Indianapolis such as Greenfield, Shelbyville, Franklin, Greenwood, Beech Grove, Speedway, Avon, etc. are all good areas to look into. You'll have an easier time achieving your criteria with a small multifamily purchase as well. Hit me on a PM and I can send you a few.

@Caleb Clay I've got a fantastic reference in this area for you. There is no incentive for my reference by the way, I'm just blown away by her level of service. PM and I'll make the intro.

@Jared Smith you've nailed the first part of the due diligence phase! Property management is the absolute backbone of an out of state investment. I can provide a reference and a property manager here that will knock it out of the park for you. She's the best in the business, bar none! PM me and I can get you in touch.

@Charisse Daving there are plenty of options in this area depending on your goals, risk tolerance, etc. There are plenty of potential stumbling blocks from investing out of state (I just moved from Oregon and began investing out of state several years ago) so make sure your informed! I am happy to tell me story and expand on some potential hurdles so you can learn from my mistakes. 

@Benigno Cunanan that area is spotty so it would depend on the exact location. To me it sounds like it's in the Mars Hill neighborhood at that price point which is not great. 

As far as areas that you should focus on it all depends on your goals and comfort level for neighborhood standards. I invest in the suburbs primarily as I don't like the block by block differences in some of the Indianapolis neighborhoods. The key thing for out of state investing is mitigating your turnover which is what kills cash flow. In order to do that you need to find good solid areas where people want to stay. This is what drives me to the suburbs as school districts are higher ranked and the block by block differences are less common.

I'm happy to expand or assist in any way I can if you want to reach out.

@Joan-Marie Pagan your talking $20K homes or less if you can find a lender, which you will have a very hard time finding. You will find a private lender most likely. A $20K in Indianapolis is possible to find but I guarantee you that you will lose your money and end of begging someone to take the property. Save up your money and buy a $50K+ home as a rental, then you'll be truly investing.

@Joan-Marie Pagan I'm assuming your leveraging the $10K? You may be able to use that money to buy turnkey but I assure you that you will not be in areas that are desirable. A true turnkey in this area will be $50-100K depending on the asset class and I would advise you to stay away from anything priced lower. Let me know if you have questions, but do not buy a $10K house in Indianapolis, you WILL lose money!

@Steve Theders it my past experience with refinances. I wouldn't say it's always but the banks will want to maximize their equity positions on a cash out refi plus the appraiser doesn't have a "price " to hit. On a typical sales appraisal the appraiser typically comes in right around the agreed upon "price" of the house. The key takeaway is to run your numbers at safe margins so your not surprised when things come in lower. 

Looking for a fantastic flip in a hot area? This home is directly in the heart of Bates-Hendricks and primed for a nice profit margin. The garage on the rear of the home is plumbed with a bathroom and can be setup as a small rental for extra income. Listed at $149,900 but discount given for Bigger Pockets buyer!