Looking to do BRRR for residential multifamily in and around Indianapolis, IN

[Chike Onyia]

Looking to do my first BRRR deal with a friend as my equity partner

OUR MAJOR GOAL: Get enough cash flow deals to replace our entire salaries (call it $300k+ combined before tax) within the next 4 years

We have $100-150k for a down payment, maybe another for $100k for renovations

Given we are new, and looking to do our first deal (aiming to do at least 2 to 3 in 2025 if we can), we're planning to start with smaller multifamily (2-4 units)

We primarily are looking in the Indianapolis market, mostly looking at off-market deals, numbers need to make sense

Targeting a 10-15% cash on cash dividend with a 1.5x+ equity multiple annually post cash out refi

If you see anything let us know

[Ghassan Jabali]

Hello Chike,

I hope you're doing well. That is great to hear about your major goal and the plan you have in place. One thing I may recommend as you begin your search to do your first BRRR deal with a friend is to establish expectations with your friend about responsibilities each of you will have, how decision making will be done with the two of you, and any potential exit strategy should there be a falling out. We may recommend this to be done in writing and depending on the level of commitment between the two of you with an agreement or the formation of an LLC.

Additionally, since you are looking at the Indianapolis market, we may recommend forming an Indiana LLC to engage in the renting of the business, and potentially a holding company beneath it if you both are concerned about any personal liability exposure and/or anonymity.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.