All Forum Posts by: Annie Li

The lease for my 3rd property was signed today.  I guess posting on BP brought me good luck; I will visit BP more often.

@Account Closed I realized that as soon as he told me about this charge.  I overlooked this clause while signing PM agreement; if I have seen it, I wouldn't have signed the agreement.  But it seems like he didn't take advantage of this clause and tried to rent it out as quickly as he can, which I am grateful.

Thanks to everyone's input and warm words.  

Surprisingly, my PM on 3rd property told me this afternoon that they have found a tenant (single mom with 3 kids, stable job, average credit, no eviction/criminal history) and the lease will be signed tomorrow. The rent is $700.  If there is no lease this week, I have decided to replace him because he is charging me $100/month even though the unit is vacant (higher than what he will charge me when unit is occupied), but he won't charge extra for tenant replacement, which is unusual among PMs.

@erin 

@Erin Donlan In regards to your comments on 2 baths properties, since I have been shooting for high cash flows, 2 baths properties are very hard to find, furthermore, more bathrooms mean more maintenance costs.  I just checked Zillow, Redfin and Trulia, neither of my properties are listed for rent there.  One of my PMs explained that he only targets prospects in thespecific area, so he uses signs, flyers, etc. instead of Internet.  He said if he posts on Internet, it would be too much hassle dealing with applicants from all over the places.  I'm not sure how to comment on this.

@Matthew Schroeder @Alain Perez-Majul @Rodney Kuhl

The rent amount was determined by my PM, and I'm ready to lower it anytime when needed.  The purchasing prices are accurate on public record, but I spent a couple of thousands on rehabs for each.  Instead of buying more SFRs in better areas, I would prefer to start buying small apartments (<20 units).  

@Mayank S. I asked FS House when I just started in Indy and came to know they don't manage properties that were not purchased from them, furthermore, my area is not their service area. 

@Hersh M. I feel that 10 properties are not that many to consider diversifying yet.  If I start buying in a new area, I have to do a lot of research on the market, find local contacts, etc. It's very time-consuming and can be a little risky as well since I've not gained enough experience even on one market yet.

@Matt R. Can you please share how you google check for vacancy rate in a specific area?

@Mark Radford I get your point, but there are many hard-working and responsible people who can't afford renting in a better area.  I made sure the all-in price I paid for these properties would give me enough buffer for gaps between tenants or higher maintenance costs.  

The rental on 46218 is not on a very private road; there are apartments buildings right across the street and convenient stores right by it, so I feel pretty safe.  Thanks for your suggestion.  I will see how these 2 properties go and may move to better areas later.

Thanks to everyone's response.

@Ryan Poske I didn't ask my PMs this question because they were referred to me by other investors so I assume they all market their properties as much as they can.  Per my PMs, there are plenty of traffic but no qualified applicants.  

Hello Everyone...I have been struggling with finding tenants for my last two SFRs in Indy and would love to get some advice from people who are experienced in Indy rental market.  Any help is greatly appreciated.  I hope my experience may also help other investors who are interested in or have just started in Indy buy and hold market.

I am a newer out of state investor.  I started from Indianapolis buy and hold market and have closed 3 SFRs there since December, 2015 (the other 3 SFR transactions fell through for various reasons).  I was planning to purchase at least 7 more by end of 2016, but because of the challenges I have been facing to find tenants for my 2nd and 3rd SFR, I have decided to slow down my pace or change my strategy until all my properties have been rented out.

The 1st SFR was rented out easily because my property manager happened to have a tenant that wanted to move to a larger rental quick. The 2nd one was closed in the beginning of January, the 3rd one was closed at the end of April; both have been vacant till now.

The addresses for my 2nd and 3rd properties are: 

5405 E 21st St, 46218 (750 sf, 2 bed 1 bath with basement, central heat, no air-conditioning, built in 1953)

2401 N Sheridan Ave, 46219 (1173 sf, 4 bed 1 bath, no basement, central heat/air, built in 1949)

Both properties are in very good shape, all new paint and flooring, both have double-pane windows, 2nd property has brand new exterior paint as well.  2nd one is listed for $675/month, 3rd one is listed for $700/month.

I tried working with section 8 through my PM on my 2nd property since the beginning of March and have found tenants twice, but the inspection and paper work with section 8 are extremely slow, so both tenants went for different properties.  We are marketing for regular tenants now.  

I used a different PM for my 3rd property.  After rehabs were done at the beginning of June, I listed it for $750 and lowered to $700 at the beginning of July.  I asked my PM why there are still no qualified applicants for the 3rd property after rent was lowered, he said there are many rentals on market, but for a property with reasonable rent, good shape and 4 bedrooms, I can't think of why nobody wants to rent it other than 3 applicants that had eviction or criminal records (their applications were rejected).

I have a full time job in California; even though I can fly to Indy if needed (I am a remote employee), I feel quite helpless when things like this happen.  Please help.... 

I need to find a good CPA in Indy for my tax return and setting up series LLC, any recommendations are highly appreciated. Thanks.

@Jay Hinrichs This is such an awesome idea, I don't want to miss the fun if it's not too late yet.

I am staying in Indiana now to rehab my first investment property, so I'm very new to REI. I can use my own money to purchase and rehab your duplex/triplex and would love to share my experience and donate to charity. Your requirements didn't say someone needs to be permanently living in Indy, so I plan to temporarily live in Indy during the process to ensure things go smoothly and send updates through BP.

No matter whom you choose, I wish this experiment to be a great success that can benefit many BP members for a very long time.

@Jason FarmerI am not satisfied if I am just being a typical newbie and buying turn keys in an area that everybody has been talking about.  I think I can accomplish much more if I try harder.  I will be more cautious while selecting neighborhood and will build a good local team eventually, it's just a matter of time.

@Dale Stevens Yes, I'm aware RE tax will double during reassessment if it becomes a rental.  Thanks for reminding me.  I will also look into south Merrillville more since you are making tons of money down there. :) 

I'm in need of good PM recommendations so will PM you for that. In regards to due-diligence process, I'm still learning about what needs to be done.  I use BP, realtor.com, zillow, zilpy, padmapper, craigslist, county records, google maps, video calls with realtor, inspector, etc., I will physically be in the house at some point before sales contract is finalized.  I am not sure if there is anything more I can do.  Any advice is welcomed. 

@Jason Farmer@Sharad M.@Jim C. I can't say thank you enough for being so caring and helpful.  I will not proceed further with this property.  

I was in Merrillville earlier this month to look at another property 5 streets south of 52nd (on Jefferson Place) which was selling for $84,000 but was much smaller with no basement.  The neighborhood was so tranquil with charming brick houses and neat front yards.  I also drove around a bit (probably didn't drive far enough).  At that moment, I decided to buy at least one brick house in this neighborhood once I came across a good deal.  

I thought I got a good deal until you guys started warning me about this neighborhood...It's a good lesson learnt, and I am grateful that because of your help, I wouldn't have wasted more of my money and time.  I will definitely seek savvy investors' advice before I sign any contract until I'm familiar enough with the area; apparently I have a long way to go.