All Forum Posts by: Bryan Ghorbani

Hi Alain,

Thanks for your input. Would you buy a property that had an active sewer backing up in the basement and had a bunch of minor things wrong with it and pay retail? That's the situation I'm faced with. The CoC would be about 30%, NOI ~ $12k/year. Already has tenants in place. My other choices are newer SFRs that don't have as good NOI and CoC (but heard they cash flow better due to lower maintenance and better tenants).

3 year holding is because I can own it free and clear by then and sell it (1031 Exchange) to upgrade to a larger multifamily property. I think interest rates are going to climb so the cash-out-refi (BRRR) strategy isn't going to work as well as it currently does. Just my take on things. It also limits the amount of repairs I'll have to make on the property (mechanicals, roof, etc.).

Hi All,

As I'm out here making offers and ordering inspection reports for buy and hold strategy, investing for cash flow, what are some deal breakers in the inspection report. What types of things would you walk away from a deal over? What is your tolerance level? My first property would likely be held for 3 years max if that helps paint a picture of how long the glue needs to stay together ;)

I'm asking because the inspectors job is to point out EVERYTHING. For example, the cover panel to the electrical has the wrong screw type and it's listed as a safety hazard. How do you make an assessment of your own after reading the report?

Your help is already appreciated!

Cheers,

Bryan

Just wanted to give everyone an update on this property. The inspection report came back and the duplex had major issues with roof, foundation, hvac, plumbing, and electrical. That pretty much means "no go" for a newbie like myself. 

@Ashley Mullin @Matthew Schroeder 

I am one block north on College outside this red box(go to Google and type in "Old Northside, Indianapolis, IN"). 

https://www.google.com/maps/place/Old+Northside,+I...

I guess that is technically Near Northside then? Close enough to both neighborhoods...

Thanks everyone for the great ideas and input! 

@Cindy Donley the duplex is located in the Old Northside neighborhood, just a few blocks east of Herron-Morton. Where are you investing? I recently went to the Formula 1 race near Austin and spent a good amount of time. I saw some parallels between "old Austin" and Indianapolis. Austin real estate has been on a rocket trajectory the last few years and I'm hoping the same for Indy (my former hometown)! I'm not too keen on having tenants purchase their own appliances. With the rent rates I'm pursuing, the expectation from the renter would be a full furnishing of appliances. 

I love that HD and Lowes are willing to wheel and deal. I'll definitely look into that because I'm going to be buying the paint supplies myself and paying for labor. Could be a one-stop shop!

@Linda Osborn I do not have a PM lined up yet. I'll be vetting those starting next week. Home inspection should be completed today and the bank's appraiser should be coming out on Monday so still a little early in the process. Hoping to use the inspection as another round of negotiations. 

Thanks everyone for the feedback! I love BP and can't wait to contribute further to this already awesome community of real estate professionals!

Cheers,

Bryan

Hello BP Community,

I've been wanting to get into real estate buy and hold investing for cash flow since I was in college. 1 year ago today I decided I would finally do something about it (33 years old now). I spent all of this year researching deals, analyzing numbers, making offers, reading BP, and listening to the podcasts almost every day.

My wife and I have an accepted offer on a duplex in Indianapolis and are in the due diligence and inspection phase right now. If the inspection goes well and we close (within 30 days), I want to move pretty quickly on painting the interior walls and trim, as well as furnishing the appliances. I need 2 stoves, 2 refrigerators, 2 washers and 2 dryers. I was thinking of leasing coin-op machines and putting them in the garage but decided to go for more tenant convenience and charge more in rent. 

What costs am I looking at for the paint? The duplex is about 3000sqft total and I'm going with a semi-gloss Behr medium gray color ($29/gal Home Depot), classic white trim. Where can I get a reliable, professional painter? Does anyone have a great appliance vendor they would recommend?

Thanks everyone for the ongoing support. I can't wait to get my hands on this property and post an update in mid-January!

Cheers,

Bryan

Hi Alec,

My apologies, I thought those details were listed above the post in the header.

Price: $83,000

sqft: 2,500+

Address: 230 Hamilton Ave., Indianapolis, IN 46201

I added a picture of the property from the sidewalk. Has a great curb appeal as the outside has been updated as well.

Located in the desirable Holy Cross area, this huge property boasts a recent remodel and refinished hardwood floors, molding, and a framed up attic ready to add more square footage, or turned into another unit. 

Property can easily be divided into three large apartment units with a central staircase already in place. Very convenient to downtown Indianapolis without the sky-high price tag. Cash buyers only. Must be able to close within 10 days of contract. Call 317-457-5822 for more information or email [email protected] .

View the photos here (Google Drive)

@Jon Crosby thank you so much for this information! This is extremely helpful to gain some insight into this realm of REI.

It seems like the risk too much for me to handle at this time on this deal without a really relaxed investor to back me up. I would be taking a humongous hit financially every month it sat unoccupied/rented. Plus selling a mansion like that is next to impossible, which is probably why they are going through an auction service in the first place.

FWIW, last year was indeed an exceptional ski season :) Hope it continues...

Hi BP community,

I came across a seemingly complicated deal. Here are the details I have:

6BR/6BA Mansion with outdoor firepit, massive EIK, every amenity imagineable.

The home is currently under contract with a luxury auction company.

The auction rep told me there were no other bidders lined up. This was proven to be true when I visited the property and the fridge was stocked full of beer, wine, cheese, fruits, etc. (things you would have out for an open house). Auction end-date is Aug. 30th. The auction rep was pretty clear that there was zero competition for this property.

My questions are as follows:

1. Has anyone had any luck acquiring luxury properties below market value? 

2. I'm guessing this property will go for at least, minimally $1.5MM. I don't have that kind of money to show proof of funds. Does anyone know where I can find outside investors to JV on the deal or fund it at a high interest rate?

3. Due diligence shows the property grossed $230k last year in rentals (a corporation rented it for 4 months during ski season for the bulk of that gross revenue). What are some of major costs associated with vacation rentals? Is there a occupancy rate I should use as a "rule of thumb"?

Any help would be greatly appreciated. I'm new to investing, but this deal seems good on paper. The property is amazing and at the least can be short-sold for profit.

Cheers,

Bryan G.