Asking for Advice on Meridian Highland Property

[Shea McCavit]

Hi Guys,

My brother and I invest primarily in turnkey rentals here in Indy, focused on cashflow. I was wondering if someone could help me out. I'm looking at a property near 23rd and N Capital Ave. The wholesaler is asking 117k. It seems that the home needs very little work based on the pictures. It looks great:

https://www.dropbox.com/sh/lqn3zsx6ivi3368/AABJ44KGV3L8RBg2ehttZC4ma?dl=0&preview=E5E6EF47-D194-405E-AD85-BAC2F7FD4D56-12764-00000752359EBD91.JPG

Now the problem I'm seeing is being able to cashflow enough to make the property worth it. We plan on simply using hard money to put in an offer and then turning around and refinancing with a conventional lender. The monthly payment will be about ~650-$700, which includes principal/interest/taxes/insurance. Based on the rents in the area, I'm hoping we would be able to charge 1100-1200 (based on rents on Zillow/Rentometer) equating to 400-500 cashflow (minus vacancy/maintenance of course).

Is anyone familiar with this area? Does this sound feasible? What are the vacancy rates like in this area? I see that several houses within .25 mile are charging 650-900 a side for a duplex. Houses closer to Herron-Morton even more...

Any information would be greatly appreciated. Thank you!

Shea

[Shea McCavit]

@Jaron Walling, well the rents right around the corner in Herron Morton seem to be around that range. It is a SFR. I'm baffled why rents fluctuate so much between the area this property is located to an area less than .25 miles away.