Initial Investment is Out of State in Indianapolis, Indiana!

[Jeffrey D. Kent]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $65,000
Cash invested: $13,000

1409 King will always have a special place, as this was our first investment property! This is a single-family home in a working class area that has been rehabbed inside and out to offer our tenants an excellent property at a reasonable price.

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

Jumping into the investment market can be scary, a nd investing out of state even scarier! Living in Southern California, the idea of purchasing a property with 20% down and being able to rent it out to cover the mortgage is next to impossible. However, when one looks out of state, these impossibilities are everywhere. Not only are we covering the mortgage, but making a 12.5% COC return!

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

After scouring the internet, listening to podcasts, and watching webinars, I met Terrence Burner with Invictus Real Estate Group out of Indianapolis, Indiana.

How did you finance this deal?

This property was financed traditionally through USBank with 20% down.

How did you add value to the deal?

Since this was my very first deal, I sought out a turn-key rental. Therefore, no additional value was added to this property.

What was the outcome?

The outcome has been wonderful. The property has a tenant on a 2 year lease, who has made all rent payments thus far timely!

Lessons learned? Challenges?

The biggest challenge is to stop thinking about it and, as Nike says, "Just Do It!" Of course, do your due diligence, but get off the sideline and into the game.