New Investor - How to find a deal in Indy on the MLS

[Zach Baker]

I just moved to Indy and I am ready to begin my investing career after finishing my MBA. As I read the forums, I continue to see that finding a deal on the MLS that will bring in positive cash flow ($100/unit) or more is nearly impossible? So what do I do? Should I find a wholesaler and pursue that route? Or start driving for dollars to find "FSBO" opportunities?

[Adam Sankowski]

Hey Zach, I don't know what forums you are reading but finding something that cash flows $100 a month in Indy off the MLS should be no problem. I promise I could go on the MLS right now and find 20 houses in Indy that fit that. Finding something to BRRRR, yes you might need to go the wholesaler route.

But if you've got 20% to put down conventionally you should be able to find $100 a month all day long. Now, you might not find this with properties above 100k but I find the sweet spot in Indy is 70-100K. Just make sure the rents are at least 1% of purchase price aka. 100k = 1,000 a month in rent. If you follow that you should have $100 a month no prob. I am probably a bit aggressive but I'm getting at least $200 a month off my two single families and duplex and I bought off the MLS.

And I'm talking about rent-ready properties that might need a touch of work but should basically be good to go.  A big part of whether they will cash flow or not too is how many repairs you have to sink into them at first or if you can get them in decent shape.  That's always a roll of the dice though. 

That's great that you're on the ground there too. I'd get an "investor-friendly agent" (no shortage of them in Indy) and just ask for them to direct you on the MLS to what they would recommend. Aim for the neighborhoods that are just one away from the "hot" ones... so instead of Foutain Sq. or Bates go for south Fountain, Garfield park, Emmerson Heights, edge of Grace Tuxedo, Brookside park etc.

And look for something for 80k that will rent for 850K.  Your good new investor-friendly agent should also be able to intro you to a property manager (which you might not need living there) but they should be able to give you good rental rates.  Also, if you're going to self manage then bam you're at $200 a month cash flow off a 1% deal right there.  Self-managing is going to save you the 10% that a good manager will charge. Indy is full of 1% conventional deal at 20% down- Don't let the forums tell you otherwise or make sure that they aren't talking about something else...