Looking to buy first property next year, would love some advice!

Indianapolis, Indiana
BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Looking to buy first property next year, would love some advice!

Kevin Liu
New to Real Estate · Member since 2024 · 8 posts · 29 votes

Hi everyone,

I'm 25 and have always been interested in real estate investing. I work full-time in tech and don’t have a background in real estate, but I’ve been reading books like BRRRR and others to get familiar with the world of REI.

My goal is to buy my first property by the summer of 2026. I’ve been saving for the past few years and should have around $130K by next summer.

I have a few questions and would love to get your advice:

1) Do you think $130K is enough to buy and rehab SFH properties in the Indianapolis market? I've been browsing Zillow and see some SFHs around $100K, but a lot of them were built before the 1940s. I'm assuming those would need pretty heavy rehabs?

2) I'm open to other types of REI projects too. If you think my budget would be better suited for something else, I'm all ears.

3) How do you estimate rehab costs? At what point in your research process do you start crunching numbers? I've been looking at Zillow , and often they don't have good pictures and no floor plans attached. How do you work around that when you're trying to run numbers or use rehab calculators?

Thanks so much for any advice you can share!

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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
1y

@Kevin Liu why would you associate year built with a heavy rehab?

99% of properties built in the 1940s would have had something updated in the last 80 years!

So, your $130k should allow you to pay all cash for acquisition + rehab.

You can come pretty close on rehab estimates from square footage of house and interior pics - if you have enough experience. 

Your other option is to find a contractor you can PAY to give you rough estimates with an corresponding walk-thru video to prove they were there. You can try to find contractors to do this for free, but after 2-3 free estimates, they will all stop taking your calls.

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  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    1y

    130K is a good amount. I would leverage hard money which would leave you with a lot of room to have reserves. For estimating the rehab you need to walk the properties and pay a GC to go with you and provide a scope of work. There's a per SQ FT approach but it's not as accurate as walking it. Photos won't do justice and can hide big things like an old roof, old HVAC, bad wiring, etc. Detroit is a good market. There is a couple good contacts on BP for that market, hopefully they chime in

    3Reply
    • Sushree Mohanty
      Member since 2023 · 38 posts · 29 votes
      1y

      @Caleb Brown hi ! Could you please suggest the Detroit area contacts? I am looking to brrrr as well in midwest

      0Reply
  • Michael K GallagherBusiness Member
    Real Estate Agent · Columbus OH · Member since 2018 · 1k+ posts · 1k+ votes
    1y

    @Kevin Liu would agree with what many have said here. Although the BRRRR method works to recycle funds it is also higher risk and leaves yourself susceptible to short term issues like construction etc. Not saying you can't do it, many people are successful, but if you want a good intermediary step on the way there a turn key rental to learn the process and leverage some of your funds could be a more "base hit" way to go. Many turnkey providers are offering interest rate incentives too. so they are worth checking into and making sure the BRRR is really "worth the squeeze" as they say.

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    2Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    1y

    @Kevin Liu why would you associate year built with a heavy rehab?

    99% of properties built in the 1940s would have had something updated in the last 80 years!

    So, your $130k should allow you to pay all cash for acquisition + rehab.

    You can come pretty close on rehab estimates from square footage of house and interior pics - if you have enough experience. 

    Your other option is to find a contractor you can PAY to give you rough estimates with an corresponding walk-thru video to prove they were there. You can try to find contractors to do this for free, but after 2-3 free estimates, they will all stop taking your calls.

    [email protected]248-209-6824
    Logical Property Management4.9451 Reviews
    WebsiteView Page
    3Reply
  • Obed Calixte
    Real Estate Agent · St Petersburg, FL · Member since 2019 · 320 posts · 182 votes
    1y

    Over the next year, some things to consider are:
    -Defining the goal you are tying to achieve (if not done already)

    -Define the REI strategy you aim to achieve that (sounds like BRRR)

    -identify what a good deal looks like for you

    -identify the Indy submarket/neighborhoods that best align with above strategy


    It won’t be easy to go it alone so get active and network. Meet in person the people in your market that are doing it. You’ll shorten your learning curve greatly.

    1Reply
  • Kevin Liu
    OP
    New to Real Estate · Member since 2024 · 8 posts · 29 votes
    1y

    THANK YOU everyone for your response! These are great advice and I'll start to look into turnkeys as well. 

    0Reply
  • Ryan RomingerBusiness Member
    Real Estate Broker · Indianapolis, IN · Member since 2018 · 340 posts · 144 votes
    1y

    Hey, you’re on the right track. $130K is definitely workable here. Those $100K homes, especially pre-1940s, usually need serious updates though — think roofs, HVAC, electrical.

    If you’re open, you could also snag a small duplex or townhouse, maybe with lighter rehab and better cash flow.

    For rehab costs, I start ballpark estimates early — like $20–$30/sq ft for basic updates, $50+ if it's rough. If pics suck, I assume worst-case until I can walk it or find better info elsewhere.

    [email protected]317-935-0075
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  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    1y

    @Kevin Liu

    are you local to IN?  and can you house hack?  house hacking is the best way to get started, period.

    0Reply
  • Laura Navaquin
    Investor · Member since 2024 · 83 posts · 58 votes
    1y

    Hey Keven 

    first off, I just want to say how impressed I am that you’re thinking this far ahead and stacking serious savings at 25. That kind of discipline and intentionality will absolutely set you apart in this space.

    To your questions..here’s my take:

    1) Is $130K enough for SFHs in Indy?
    Absolutely... you’re already in a great position, especially for a cash purchase and rehab or as a strong down payment with financing. I’d agree that older homes, particularly pre-1940s, can require heavier rehabs (electrical, plumbing, structural, etc.), but that's not a deal breaker, it just means you need to budget conservatively and lean into strong due diligence. If you go the BRRRR route or creative financing, $130K could actually help you acquire multiple properties over time rather than just one.

    2) Other REI projects to consider:
    If you’re open to it, consider duplexes or small multifamilies. You can house-hack one unit while renting the other, a great way to lower your living expenses and gain landlord experience. You could also look at mid-term rentals (30+ days) which tend to offer higher returns without the intensity of Airbnb-style management. Creative finance, seller financing, and subto are worth exploring too...they’re how I scaled from 4 to 21 doors in under 2 years.

    3) Estimating rehab costs + when to run numbers:
    I usually start with a basic rough estimate just to see if it’s even worth digging deeper. At the “Zillow stage,” assume higher-than-expected numbers if the photos are bad or missing. I also use a rehab calculator (I can share a good one if you’d like!) and apply a price-per-square-foot based on the project scope. For a heavy cosmetic rehab, that might be $30–50/sq ft. If major systems are involved (roof, HVAC, plumbing), that’ll jump significantly. Once you’re more serious about a property, that’s when I walk it with a contractor and get a detailed scope + quote.

    Always build a cushion into your numbers, overestimate expenses and underestimate ARV. Better to be surprised in a good way than caught off guard!!!

    You’re doing all the right things, and I’d love to support you on this journey. If you’re interested in a strategy call or want to join a group of other new (and active) investors I connect with regularly, let me know!

    – Laura Navaquin

    1Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    1y

    @Kevin Liu

    You're in a fantastic position—$130K is a strong start, especially in a market like Indianapolis. Yes, many of those pre-1940s homes can cash flow well, but you're right to assume they often need significant rehab—think electrical, plumbing, roofs, and HVAC. With your budget, you could definitely pull off a solid BRRRR on the right deal or even consider small multifamily properties if you want to scale faster. For estimating rehab costs, I recommend building a basic cost-per-square-foot spreadsheet for common repairs and leaning on a local contractor or investor-friendly agent early—Zillow won't give you enough info, so seeing the property in person or getting a local boots-on-the-ground partner is key.

    Good luck!

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  • Kevin Liu
    OP
    New to Real Estate · Member since 2024 · 8 posts · 29 votes
    1y

    @Wale Lawal

    Thank you for the response. You mentioned "consider small multifamily properties if you want to scale faster" and I'm curious why small multifamily would scale faster than SFHs?



    1Reply
  • Kate Sanchez
    Member since 2025 · 242 posts · 98 votes
    1y

    @Kevin Liu Great planning ahead! Have you looked into starting with a light rehab or turnkey rental to ease into BRRRR while building local market knowledge and a reliable team?

    1Reply
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