First real estate deal

[Account Closed]

Last year I stumbled upon bigger pockets after deciding I didn’t want to work for someone else for the rest of my life. Today I got an offer accepted on my first real estate deal(seller financed) in the Indianapolis area in arsenal heights. It feels good to meet my initial goal of my first duplex by the end of the year. I am funding the rehab of the duplex with cash since I didn’t have to make a hefty down payment

Deal is as follows:

Asking price: 96k

Accepted offer: 70k

Earnest: 1k

Down payment: 10% 7k

18 month interest only @ 8.5% on 63k loan: 450 dollar payment roughly

Rehab: 50k

ARV: 165 (hopefully)

Rents: 800-850/ side.

As houses become less affordable in the fountain square/ woodruff area people are moving into arsenal heights following some gentrification and I am looking forward to commanding 1k rents or more.

Hopefully the ARV is good and I can be into this with no money once I refinance and rinse and repeat and buy the house next to it.

Long distance investing is scary but I am looking forward to the journey ahead 

[Mike D'Arrigo]

@Account Closed I hope you're going in to this with your eyes wide open. I've been active in Indianapolis for the last 7 years but have not been a big fan of multi family in Indy. Most are located in the older, rougher neighborhoods which I would consider Arsenal Heights to be. My advice is to talk to an unbiased property manager and get their input on the area, the types of tenants you could attract  and how difficult they feel the management would be. You should also get their opinion on the rent estimate. Depending on the street, the rent could be closer to $700 per side than $800-$850 but rents vary widely depending on the street.