All Forum Posts by: Account Closed

Greetings! After a great deal of reading and researching on general markets, I've decided to hone in on Indianapolis as the place to look for my first rental property, specifically focusing on multi-family units. I'd like to pay a visit to drive around town to check out the area, but I'd to have a better idea of the general neighborhoods first so I can plan accordingly.

So far, I've only gauged neighborhoods based on school districts (from Redfin's greatschools data) and crime rates. In terms of public school districts, it looks like Speedway, South Ripple, and some areas near Southport have good school districts (does this even matter with multi-family units?). For crime rates, it looks like Speedway may be the safest. Obviously, these are all very generalized based on what I'm finding online and can vary from street by street as I've been told previously.

I've also read in some housing reports that the area in Hamilton County (specifically the south side due to being closer to Indianapolis) has been experiencing some growth. Can anyone local confirm this?

One thing I still haven't done yet is find out where all the major companies/jobs are at. If anyone has other factors that they believe I should consider please fire away!

Thanks in advance!

@Darius Ogloza @Alora Glaze Good points. I've been reading reading some reports on those Midwest cities regarding job growth, employment, vacancy rates, etc. I imagine I'll be taking some trips out there at some point this year to get a good gauge of the neighborhoods.

Hello!

I'll be moving to the Bay Area later at some point this year due to a job change and recently got started on my real estate investment journey. I have yet to buy a place, but I hear that it's generally best to invest locally if it's your first time. I was wondering if anyone has had any success in SFR's or multi-family buildings this year. I'm shooting for a minimal value-add 8%+ COC. Based on what I've seen on the market on the MLS so far (I know, I should get an agent), it seems like that's not happening any time soon, and I may be better off investing in the Midwest somewhere. I imagine it's a weird time for investors right now since people are moving out of the area but there's still some bidding on SFR's. Anyone make any moves in this general area?

As far as the Midwest is concerned, I've been poking around Detroit, Cleveland, and Indianapolis. Detroit and Cleveland seem to have pretty good numbers as a first-pass. I'd still need to understand the neighborhoods. I was originally shooting for Indianapolis, but it seems like appreciation rate is somewhat outpacing the rental increase rate. Given that it would be my first investment and I'd be out of state, I imagine it would be best for me to go for turnkey SFR / multi-family buildings with a PM. Thoughts?

@Will Fraser Thanks for the reply! As a follow-up, is it also possible to deduct annual LLC fees in from rental income as well?

Hi All!

New investor here. After some reading about the different laws in different states for rental properties, I've noticed a trend of having to register your rental property to the city (or state?) and having to pay some fee every so often. My simple question: Can you deduct this from your rental income like you can mortgage interest, PM fees, etc.?

Thanks in advance!

Tagging @Michael Orlando since it just didn't work for my previous reply

Coincidentally, I'm in a similar situation! New investor and hoping to get started somewhere reasonably priced for me.

@Michael Orlando What's your take on why the real estate stats are still going well for Cleveland? From what I've read about the area, it looks like there's been a net migration of young professionals out of the region, to the point where a good chunk of residents there are a bit older in age. Manufacturing and government jobs seem to be on the decline, and yet vacancy rates have been slowly going down while asking rents have also really been increasing. Before the pandemic (which is of course temporary in long run), it seems like Cleveland's biggest job additions have been in the leisure/hospitality sector. I guess there's really something I'm not understanding about the market. And speaking of the pandemic, have you been seeing a net migration of people this year?

@Joseph Schweizer I read through some of your post. Looks like that's a ~19.7% COC ($230 * 12 months / $14k), which is amazing for a turnkey (in my novice opinion). If you don't mind me asking: is this something you plan on holding for long term, or will you sell after you hit a certain minimum return on equity?