[Calc Review] Help me analyze this deal - Indianapolis

[Dan D.]

Hello,

I have been trying to research the Indianapolis area to the best of my ability. I am curious to know if the report below is a realistic investment I can make? Or am I too late to the Indy party.

I found this on realtor.com - its no secret I just want to know if I am analyzing/thinking of this the right way.

List Price: $49,000

Purchase Price: $44,000 - lets say I can get a couple thousand off and magically get a 30 conventional with 20% DP.

Repair Cost: $5,000.00 - 

Property Taxes @ 2% of list price - could be lower

Rent: $650.00

If there are any Indy market experts that want to chime in on my rates for vacancy, repairs, and CapEx that would be great. Can you also confirm if this would be considered a B/C area?

Any feedback appreciated.

Thanks!

View report

*This link comes directly from our calculators, based on information input by the member who posted.

[Jay Hinrichs]

Originally posted by @Dan D.:

@Lane Kawaoka Thanks for the response and insight. I'll definitely be analyzing/aiming for more properties in the $900 rent range.

@Andy Rumple Thank you for your insight as well. "Neighborhood is blue collar C" I don't think is necessarily a bad thing, right? 

If purchase price was lower in the 20k-30k range, it would make sense?

https://www.biggerpockets.com/calculators/shared/391096/1f041e8b-b1a9-4065-a9d9-5fcfc08b0d1a @ $35k

-I understand that it is hard to get a loan for properties under ~50k - just playing with ideas/numbers

these only make a very minute sense if you pay cash and can buy 10 to 50 of them other wise.. your taking on far more risk than reward.. this is high touch high risk landlording.. just sayin  I have been in the space for 20 plus years owned 350 C class with about 20 or 25 in Indy.. its all the same through out america..   plus 

the reason i would never recommend rents under 750 is this math.

your simply not generating enough gross revenue to sustain these properties.. and on top of that if you have a 600 rent PM is going to qualify them at 1800 a month.. subtract 600 for rent.. 200 to 300 for uitls and cell phone.. and you have someone living on less than 250 a week.. for food clothing insurance car etc etc... now can you live on less than 250 a week ???? think about it.

900 rent is minimum requirement  2700 a month in income  utls are the same.. car and other stuff the same so now they have 300 to 400 or more a week to live on.. much better.. still dont know how its done and raise a family but thats why folks in these areas are one flat tire from defaulting and they are highly transient by nature.. stuff is all ways happening in this rental class.. Just sayin.. and based on my experience