Pre-Rehab property in Indianapolis

[Andreas F.]

Hello all,

I appreciate if you can give me your assessment of the below deal.

An RE company is offering beside turnkey properties also (as below) pre-rehab properties. This means I buy in the distressed stage, they do the rehab (I already have a detailed list of what to do and what it should costs) and the benefit for me is a bit more RoI / cap rate.

Location: Indianapolis 46222

SFH distressed, built 1938, 3BR/1BA, 1 garage, Liveability index 72

SQF = 1106

Lot Size = 84 x 112

Price = 36.500USD

Rehab costs = 24.235

Closing costs = 1.500

Total price = 62.235

Rent per month = 725

Expenses per month in USD
Taxes = 54
Insurance = 40
Prop Mgmt = 75
Ongoing Maint 5%= 36
Vacancy Loss at 5% = 36
TOTAL EXPENSES: 239

Per my calculation 9.6% CapRate.

I would pay all in cash as I am from Europe and financing for an foreigner is too expensive and does not make sense in my view.

What do you think about this deal? Thanks in advance.