First Duplex Deal near Holy Cross

[Drew Stroud]

Hi Indy BP. 

I wanted to share my first (potential) deal here in Indy...

I just had my offer accepted on my first duplex. This property is a "white box"; it has updated plumbing and electrical (home was built in 1895) and new drywall put up but needs all of the finishes (kitchen, bathrooms, paint, floor, etc.).

Preface on the loan: I am using a specialty loan by Indianapolis called "Revive Indy". Loan requires 3% down of total price (house & repairs), and has no PMI.

Here are the details:

• Offer: 151K
• 3bed/1.5bath per side
• ~1400 sq ft/side
• Estimated renovation costs (See picture below): ~60K
• Estimated ARV: ~220K (??)
• Repair Costs: 

Now for the financials:

• Cash to Close (3% down total appraised value): ~12K
• Rent: 1K (1 side)
• P&I: ~$910 (3.44% fixed, No PMI)
• Expenses (Detailed Below): ~$770
• Monthly Cashflow (while house hacking): -$977

Expenses Breakdown (CapEx Picture Below):

CapEx Estimation:

Conclusion: Truthfully, I am very nervous at the moment. I feel that I am overpaying, and will go over budget on repairs. Am I getting myself in too deep? Are my numbers off? Would you have done this deal?

Let me know you're thoughts!

[Drew Stroud]

Hey @Matthew McMenamin - thanks for the question. The loan is a little grey on living there. It is expected that the property will be the buyers primary residence, until "life happens" and requires a move. So if there are external circumstances that would require a move (job relocation, family, etc.) I would be permitted to move out. I haven't thought too much about refi - but I would consider doing that when I have abt 20% equity. It is really nice not having PMI with such a low down payment