Duplex on Indy's East Side

[Kathryn Dunnivant]

Investment Info:

Duplex buy & hold investment in on the East Side Indianapolis (Windsor Park).

Purchase price: $88,500
Cash invested: $17,700 (20%)

Other cash invested:

~$5,600 in electrical (updated knob and tube and adding switches plus outlets which did not exist before)

~$600 in paint and paint supplies and light fixtures

~$6000 in foundation work

~$4000 in exterior work

~$800 in adding a closet to create a 3rd bedroom

So all in around 35k in cash invested.

What made you interested in investing in this type of deal?

This duplex seemed to have no major issues on paper so we originally had an accepted offer for 110k, which was 15k below asking. The area is an up-and-coming neighborhood, just east of Windsor Park and near 10th street where there's lots of rehab going on! We were interested in a duplex because X2 amount of rent so easier to cash flow. 

How did you find this deal and how did you negotiate it?

After doing an inspection, it was clear this property needed a lot of electrical, foundation, and exterior work. We were able to negotiate the price of the house down to $88.5k and purchased it as-is. 

How did you finance this deal?

Through Centier Bank with Chris France. Conventional 20% down loan and it qualified for a neighborhood loan. Our interest rate was an amazing 4.25%

How did you add value to the deal?

Fixed up a lot of the previous work that had been done. We ripped out the electrical on the unoccupied site, and prettied it up with neutral paint and updating light fixtures. It's amazing how paint can make all of the difference! We also added a closet to the smaller room to make the unoccupied side a 3 bed room. 

One of the sides was already occupied and rents for $800/month, we pay water and heat. We are getting ready to list the other side ASAP and hoping to get $850! We just need to clean and do some final touches! 

[Richard Jung]

Congratulations! I did not know about the neighborhood loans. I'm definitely going to look into that. If you don't mind sharing, who did your rehab? and are you using a PM? If so, which one? Thanks!

[Keith Shadle]

Awesome!  Very cool.  Wife and I drove through Woodruff Place and surroundings areas over Christmas.

How was dealing with contractors and inspector?  Would you recommend the companies you used?

How many weeks did it take to make the updates?

Congrats!  Thanks for posting.  

[Tyana Carpenter]

Congratulations! 

[Kathryn Dunnivant]

Thanks @Tyana Carpenter, @Keith Shadle, and @Richard Jung.

To answer the questions: 

Technically we didn't really "rehab" as in tear down walls and put up new walls, we worked with what was already existing due to time, money and effort needed. We still haven't done the exterior, working on getting quotes now. The electrical was done by Mike's Electrical, which took a little over a week. I would definitely recommend them. Investabuild @Phil Kirk's company did our closet, which I believe they subbed out. This took 2 days. And Foundation was done by Jayco Waterproofing, also took a week. I would recommend everyone we've worked with! Reliable, timely and responsive! We did the painting (sweat equity!!). We closed on Dec 21, which of course right before Christmas we didn't have a ton of time to start working on it until January. Due to our schedules we were limited to painting on the weekends. We are doing final touches now to get it ready for pictures such as cleaning and all of those little things you notice in an older home! 

[Keith Shadle]

Many thanks for info!

[Richard Jung]

That's awesome. Thanks for sharing. I'll check them out as well!

[Arie Bitton]

@Keith Shadle Woodruff Place in my opinion is more of flipping area than rental area. I think that is go go just south to Woodruff Place below 10th St. that area would make a great rental area.