[Deal Analysis] - 4bd/2ba SFH Rental - Indianapolis

[Jonathan Tao]

Hi all - I've been looking to acquire my first rental property and have been looking in Indianapolis for the last few months. I've been focused on this market largely due to its stable cash flow as well as moderate appreciation (know it's not as high growth as others). That being said, I am looking for some help to review my proforma - am I missing anything? If anyone has feedback on this market, would love to get your thoughts. My biggest concern is that prices are just too high for SFH right now and for a market like Indianapolis, I feel like I'm paying top of market; however I'm really itching to just get in and start learning...

Indy Rental Analysis

[Kat He]

Hi @Jonathan Tao, what is 'Administrative' and 'Contingency' for? Are your closing fees/interest rates quoted from a lender already? The numbers look okay for the most part except I would say PM fees usually are >10% given some common fees on top of the monthly management fee: 1 month leasing, onboarding, professional photos, renewal, inspection. 

What are you using to determine worst, base, best rents? I tend to use the lower end of the rent range when analyzing deals unless there's really strong evidence that it can rent at a higher price point. If you're leasing out in the winter, you should also expect slightly lower rents and/or longer DOM.