Buybox and Thesis Testing

[Jared Rice]

Following Scotts advice posting my thesis with the hope that I will receive community feedback. 

Goal: STF- 12 doors; LTF 1 Billion AUM or 83 Units

Thesis: Indiana is an up an coming real estate market. We saw a massive increase in population during covid. My idea as to who came is mostly laborers, because the median income didn't move at all and it trickled off immediately after the covid boom. This has made the blue collar workforce demographic even stronger. With home ownership being statistically more unachievable than every before in US history, this has made these people have an incredibly difficult time finding housing. Most Smaller industrial towns don't keep vacancies if they are marketed properly. Also the YOY wage growth has not pace with inflation making low income even better. Target cheap BRRR and Manufactured homes, use these to provide a basis for me to get into new construct multi-family (4-Plex), and BRRR Multi Family, I will enter these into the market as the supplement to the mid level and place them on the side of my small city that is most adjacent to the big city, to try and tap into the people in the affluent part of the city.


Resources: Very little cash (10k), decent financial network.

Strategy: Manufactured -3BD 2BT for 60k after rehab Rent- 1000
Single Person Unit- $650
Family $750
Goal 1.75% deal

Duplex-  (2) 2BD 1 BT - $75,000 = 1 Family Unit & 1 Single Unit $80,000 = 2 Family 85,000

$37,500 Per Single Unit   $42,500 Per Family Unit

4plex all 3BD 2 BT after rehab under 175,000.

I see lots of bigger pockets in the Midwest aiming for over 2%.