I can't believe what I did within 3 days in Indianapolis!

[Annie Li]

After several months' intensive self-education and a few failed attempts in SoCal, I started my first real estate tour last week in the hope to buy some good rental properties in Indiana.  

I stayed in Indy for three days and was under contact for two properties during that time.  These two are my first true investment properties (I have one rental which was my primary residence). I am very happy about what I've accomplished so far in Indy.  I will share my experience in more detail with BPers who are interested in Indy market after both transactions are complete.  

These 2 properties are very different because I tried to diversify from the beginning to reduce risks considering I am a new investor buying in a new area, furthermore, I will gain more experience with exposure to different types of properties/areas. One is a REO newer house in a solid class A area from MLS; the other one is a well-maintained older house in a class C area from a wholesaler. The numbers are below:

House #1 (4 bed 2 bath):

Year built: 1994

Square footage: 1440

Listing price: $105,500

Under contract price: $98,500 ($100,000 with $1,500 credit)

ARV: $125,000 (conservative)

Repair cost: $6,000-$7,000 (realtor's estimate but can be less)

Rent: $1,200-$1,300

Location: E 75th st & N 700 W, 46236

House #2 (3 bed 1 bath with 2 family rooms):

Year built: 1961

Square footage: 1389

Under contract price: $30,000

ARV: $50,000 (conservative)

Repair cost: $7,000 (wholesaler'so estimate but can be a little more)

Rent: $800-$850

Location: E 25th st & N Post Rd, 46219

Any feedback on these 2 properties especially on location is greatly appreciated.  I still have time to back off.  If you know any good property management company in the area, please kindly share with me.  

Thank you.

[Tracey Stegemoller]

I'm guessing your 2nd house listed is located at 2537 N Routiers Ave. I would expect rent to be more in the $700 - $750 range unless it's completely updated and then similar houses in that area look to rent for $800 - $850. If you're looking at $7k for repairs your into that property at $37k - $40k. There are better areas that you can get into for not much more money where you're likely to have less problems with tenants. There are a lot of turnkey properties available in Indy in the $50's with a tenant already in place as well that will rent in the $750 - $800 range which is another avenue that you might look into. Your other address I believe to be 12655 Feldspar Rd. which is just North of Pendleton Pike in what looks to be a nice neighborhood. I would could consider this neighborhood to be more of a class B but it is a nice neighborhood. I would say that your ARV of $125k is pretty accurate as there are similar houses in the area in move in condition up for sale in the $120's. Hope that helps a little. I've lived in Indy my entire life and know several contractors and handymen as well depending on what needs done regarding repairs. Feel free to contact me anytime.