All Forum Posts by: Amy Mitchell

@Amy Mitchell

I'm in California (Bay Area) and it's really difficult to buy here at these price points and cash flow positive (more like negative) now so I'm focusing out-of-state. I have a SFH in the Indianapolis metro area (suburb in class A neighborhood) but I bought it almost 10 years ago (used to live there). Depending on what county you're looking at, Hamilton County property tax rates are much higher for investors than primary home owners, 2.771% vs. 1.08%. I really like Carmel, Westfield, Noblesville and Fishers from an appreciation perspective, nice suburbs with good schools, but the prices are high now. My property taxes went up significantly which reduced my cash flow but my tenants are paying down my mortgage and I bought it for low price and low interest rate so I'm keeping the house

I'm looking in Indianapolis (Marion County) but I'm trying to narrow down the areas - I'm communicating with an investor friendly realtor. Being inside the 465 circle and the East side usually has lower priced homes than the West and North sides. I considered the Fountain Square area. I'm looking for SFH or duplexes (which seem to be rare), heavily leaning towards turn key or something with minor rehab (cosmetic work). I have a partial team in place for Indy: property manager, handyman, painter, roofing company in place, no contractor (yet). I'm also looking at Cincinnati.

@Amy Mitchell if you are trying to cashflow I don't think Fountain Square is not where you want to aim. The price point will be on the higher side which will limit cashflow opportunities there. Areas like that either flipping or appreciation is the play for investing.

If cashflow is what you're going for there are several other solid areas around the city that I think you should be aiming for. Somewhere in a B or B- neighborhood or something and not in an area where houses are selling for just under $1m.

I don't know Cincy as well as I do Indy, but I have an arm of my construction company in both Indy and Cincinnati and I can help with rehab and being boots on the ground in both of those markets.

As for Cleveland I will be no help with sadly.

Give me a shout if I can help out!

 Well 1st , are you cash I assume no. That will make a big difference. If you are not cash buying a MF for a good price in Cleveland will be very difficult, there simply is no inventory. Also its ALL about numbers. Lasty do not buy in any of these markets without a team in place.

Good luck 

My biggest questions for you would be are any of these markets close to where you live right now? Have you visited any of these markets to see where to stay away from? Sounds like you're looking for cash flow if you're choosing from these markets. Cleveland and Indy will probably cash flow the best but there are parts of Cleveland that have very high taxes.

Good luck!

An LLC will give you liability protection and access to commercial financing.

The latter is really important as you decide to scale in the future. Or you will run into high DTI scenarios and it will be harder to scale.

It is more work up front, but setting up the right systems from the get go is important. I recently opened my LLC for investing in midwest, and I live in WA. Use an online service such as incfile ( I have no affiliation with them) or get an attorney.

Then get the EIN number by going to the IRS website, and then open a business bank account. Keep your funds separate, and take owner withdrawls.

Again, I am not a certified CPA or lawyer, but this is what I have learnt over my research.