Multifamily newbie in Indianapolis (Fishers), Indiana

[Jason Jastillana]

Overwhelmed, scared, confused...yet, motivated, excited, willing to learn and apply tools and techniques by proven multifamily investors.  Just watched BP Podcast 191, Bill Manassero was very inspirational and I hope to learn from him and others like him (value-driven, cash-flow focused; and most of all, family oriented).  The journey begins!

Respectfully,

Jason J.

[Lee Smith]

@Jason Jastillana I am in Indy, and work with a lot of Multi-fams here.. I currently own about 3 duplexes myself, and manage several other. I have managed up to 24 unit buildings... Below are some of my thoughts on Indy Multifams.

When dealing with multifams, you need to be aware of a couple of different things though.

Higher vacancy rates, instead of 2-4 weeks to fill a single family, you are looking at 4-8 weeks to fill a multifam.

Higher turnover rates.. While my single fam renters generally rent for 3-4 years on average, my multifams only rent for 1 year on average.

Watch out for owner paid utilities. These can break the deal. While water/sewer is easy to deal with(around $75 a month per unit), anytime you are paying for heat you are looking for trouble. Residents crank the heat up in the winter and then open a window to cool off...

Most of the smaller multifams in Indy are quite older, so you may have some increased maintenances..

I am not trying to scare you off, just you need to budget for these things.

Welcome to the table, let me know if I can be of assistance!