All Forum Posts by: Tony Tomasek

I agree here, in fact you need to look at your ROI over all to make sure you are making a good decision. Looking at purely cashflow of 100/mo can lead to big mistakes

I have had success estimating ARV by looking at as many sold comps that fit the description of your property as possible, listing prices dont count in current conditions. Count on having to sell at a 15% discount or more off current market price in a declining market area. Make sure the comps are less than 6 months old (3 months preferrably) and sold in 90 days or less on market at the selling price. Find a range of prices for these and estimate toward the low end perhaps 30-40% of range for sales value.

My main goal is to invest for cashflow. I am seeing investments that I can put about 40K or less into and create large amounts of equity and good cashflow. I am wondering what areas to target for buy and hold, and which to target for wholesale etc. Also any areas to stay away from since none of Indy seems as rough as the South Side of Chicago.

Oh the part I forgot was after I finance out my repair money the cash flow will be 300-400/mo

This looks a bit pricey for a rehab when you look at the cash flow. To give an example of what I look for, I am closing on a property that is $30,000. I have a bid of 10,000 for repairs, this I can inflate to 15,000 at least to get an accurate picture. This property will bring in at least $1200 a month in rent and should cash flow about $300-400 a month at least. Dont be afraid to make offers and move on. In a declining market like SE Michigan, I would like to see a ton more cash flow. Buy at a big discount or move on.

Good question and some good replies so far. One thing to consider, is the definition of an asset and a liability. An asset is something that provides regular income. Liabilities are where money only goes out. Assets can be financed and that is what many consider "good debt". I would like to add a caveat to this. Investing purely for appreciation is a bit silly, certainly in today's real estate market you can invest for cash flow. Only regular cash flow or your income minus expenses can immediately improve your life. So, in short invest in cash flowing assets and you will do fine.

Hello everyone, I am interested in any and all advice concerning property in Indianapolis, IN or Chicago, IL area. My current focus is on IN. I am familiarizing myself with the Indy market and am wondering if anyone knows areas that I should target as buy and hold or buy, rehab,rent and flip to other investors.