All Forum Posts by: Anastasia Gamino

If you are looking in C class areas, I have found it easier to self- manage than our near eastside property.  For Indy C class, it's one of the better neighborhoods in my opinion.  Like I said with the Central State Complex right adjacent to Hawthorne, I believe property values and the neighborhood will continue to go up. 

I actually have a couple properties in Hawthorne(right across Michigan St) . Because of the Central State Complex(new houses around 200-300K very close to here), there are some flips that are being sold at 150-179 range in Hawthorne(so an appraiser might see those comps maybe).  However, it's  a little bit risky.  It sounds like you plan on BRRRing.  First of all if you can probably charge more for rent than 900 if you are planning on making it 4 bedrooms and if it has 2 1/2 bathrooms?  I have a friend that changes 1200 for a house on Addison in Hawthorne(5 bedrooms 2 bath).  My 4 bedrooms 1 bath, I get 985 with a 2 year lease and it's not that far from here.  Depending on the  need of any mechanical updates(electrical, plumbing, HVAC, furnace, etc), you might be able to get away for less than 20k.  

You might want to check out Shawn Huss at Chemical Bank. He is a residential lender(I'm thinking that a house in an LLC might not work). I'm finishing a BRRRR right now. It appraised at 82K, and and I'm pulling out 75 LTV which is just about 61,500. This is a pretty low amount. I talked to other lenders before him, and he seemed like the best option for this property.

Hello,

Everyone has great ideas above! Wow-23...I wish I would have been learning about real estate at that age :) To get started- everyone is right on track with house hacking in your current market---obviously, a lot of this depends on where you live(prices of homes) and willingness. Sometimes doubles can be more expensive especially if you are looking to live in an A or B area, so if you are willing even to rent out rooms in a SFH this could be something to consider. If you are wanting to implement the BRRR method and are relying on forced appreciation you will need something that will be a fix-upper. If you aren't comfortable with a rehab, you can start off with house hacking on an FHA loan with something more turn key and live for free to save money to keep investing. Things to consider. Once you live there for a year and need to move for work, you can rent it out( I would run the numbers to make sure this would work prior to purchasing the property). Then, repeat this process in each market you move if homes are affordable.

@Jalon Scott Yes, CIREIA is having virtual meet-ups via Zoom.

It would be helpful to have a clear real estate strategy selected, and then find investors who have already had success in these areas even if they are just 1 or 2 steps ahead of you in this strategy-and they may not be millionaire investors. For example, are you wanting to receive mentorship from a flipper, wholesaler, buy and hold, BRRRR expert, apartment syndicator. CIREAI is a great place like stated above for Indy Investors- there are very successful flippers, wholesalers, BRRRR experts, and the groups are really helpful. This provides exposure to many different real estate strategies and might help you identify an Indy market/neighborhood that will support your strategy.

@Dmitriy Fomichenko- we were able to rent the property within 1 week, and the tenants signed a 2 year lease!  

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Indianapolis.

Purchase price: $55,000
Cash invested: $80,000

Bought @ 55k
Rehabbed @ 25K
Rent @ 1500
Refinanced@ ARV 120k 70 LTV 3.6% fixed rate
Repeat @ 86k to reinvest!

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

The value add opportunity.

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

MLS- We were going to use a conventional loan. However, since there was fire damage in the kitchen of one of the unit's, this made the property ineligible to qualify for a conventional loan. We were able to offer 13K below our original agreement since it would not qualify for a loan.

How did you finance this deal?

Cash and a small private loan

How did you add value to the deal?

Renovate kitchen, essential updates, and add Central Air.

What was the outcome?

Perfect BRRRR. Invested 85K and just received a check for over 86k when we refinanced!

Lessons learned? Challenges?

It was stressful dealing with the bank in the beginning. With some creative financing, we were able to pursue another avenue to purchase the property!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Diego Hernandez! Great agent and also a real estate investor. Thank you for your patience, mentorship, and guidance!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $37,000
Cash invested: $57,000

Bought @ 37K
Rehabbed @ 20K
Rent @ 985
Refinanced@ ARV=85K LTV=75%
Repeat= 60k to purchase small multifamily

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

Under market purchase price

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

Wholesaler and yes, we negotiated!

How did you finance this deal?

Primary Residence HELOC

How did you add value to the deal?

Making a 4th Bedroom
Making necessary updates
Able to rent property at market value

What was the outcome?

We were able to receive 100% of our initial investment back after we cashed out refi the property!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Nuparodox

Great questions and responses! Like stated above, you can write in your lease that tenants are responsible for clearing their driveways especially for SFH and duplexes. If it's getting really cold(like in the negatives), I send a cold weather reminder to tenants to keep their heat on at least 65 degrees, to keep their faucets going with a trickle of water, and that they are responsible for snow and ice removal for their unit's walkways. I agree with the umbrella policy as well.