All Forum Posts by: Com M.

@Robert DeForge I was just in a similar situation. My work moved to an insurance company 401k that is a complete scam. I didn't want to invest there, and since this was now all after tax income I had very few tax advantaged options. The write-off for depreciation in my case was very important so I invested in Indianapolis Indiana. So far I found 1 duplex for 80k that I was able to put just 25% down on having it take 24k with all costs out of pocket.  I know it probably could have been lower if I shopped it around but I'm very busy with my day job so I was happy with the process. 

I just did some research on areas in the midwest and then the top PMs that are being recommended. Reached out, talked to them, found the one I liked most and then contacted a realtor in that area to start looking. I didn't want to go turnkey because none of the deals that were being sent made sense, but that is what a PM is for.  The 2 best pieces I could give you would be always get the detailed inspection and do your own numbers and homework. 

Best of luck.

Create an account on upwork, post the job.  If you select a highly rated designer with long work history you will get it done fairly quickly and inexpensively.

Remember to ask for all of the source files, and get it in vector format so it is scalable and transparent. 

Best of luck.

@William McCulloch thank you that is a nice thing to remember!

@Nathan Arceneaux we have a lot in common!  I am working a 60 hour a week job, with 2 small kids.  I am also planning on adding 1 property to my portfolio each year for the next 10 years.  The way I am able to do any of this is with a great PM company. I am investing out of state - and the PM takes care of most of the day to day work with the property. My numbers all figured management fees as well as repairs/maintenance/capex so they still cashflow and I know it could do even better if I kept that 10% plus fees but then I wouldn't be able to focus on my work which is not what I want to happen for now. 

How many are you currently self managing while working? I just purchased my first duplex and didn't even think about trying to self manage even the first - so a big tip of the hat - keeping that extra bit in the beginning and reinvesting can really make a big difference but I knew with my work schedule it wouldn't be fair to the tenants to not have a professional available to work with during normal business hours and a local to call for emergencies.

@Mike Thoeresz  I am in the same boat. I work in Newport and already had to purchase my primary residence in the Inland Empire to be even be able to afford a primary. For the Indy property I didn't go turnkey, but I did work with a realtor and buy a duplex for 80k that has tenants paying $1250 and never personally went to the property.  If you have a good Inspector, and Property Manager then you don't need to be local it just makes the team you have vital to your success and everything has to be verified.

Why are you jumping over to Dallas while you have already started in the Indy market? 

 There is a LOT of information available. I found my PM here after reading a lot from what he was posting about the area. I didn't go into full details but since you mention it being a good deal they listed for 90k, and after the inspection I found 10k in work so they took 10k off of the price but I still consider it 90k. I think total cash out of pocket to close just the house was $24k so you could do exactly what you are looking to do for 2 properties in the Indy market.

Best of luck, can't wait to hear what market and first deal you go with.

Com-

I purchased a duplex in Indianapolis for 90k that already had both sides rented for $1250.  Not a killer deal, but you can wrap it up for $25k down and do 2 of them.  Two to start, a great kickstart to a cashflow portfolio. 

I was in the same boat, after some time and research I ended up choosing Indianapolis. Currently sitting with a duplex saving for the next property. This deal was 90k for $1250 a month in rent from both sides being rented.  My plan is to buy one a year. 

What criteria are you using to make your choice? Do you have some PMs in any area that you would like to work with?

@Terron Winn as a SoCal Indy investor I would be happy to go over anything - most of the forum would as well if you post the numbers or neighborhoods.  So many rentals go through Zillow if you go through the history you can see how often the unit or units around are vacant, and how long they were advertised for rent. Having one that is only advertised once every couple of years, and is removed after 1-2 weeks is a strong rental unit  ;)

Do you have a trusted PM or Inspector?  I try to not bother the PM until you know the deal and are ready to make an offer. They are the ones that need to rent this out and they know the neighborhoods best of all. Also a good inspection can be expensive over time but IMHO but they are vital. A detailed inspection, from a seasoned inspector with pics can give you a better idea of what condition and costs may be incurred. 

So to be clear I run numbers on all deals, if one comes in with good numbers I research everything (schools, crime, vacancies, street view the neighborhood, google that address, etc),  if after that I still like it then I normally ask the PM, if they like the house/area/rental price then I make an offer and order the inspection. I also offer the PM the chance to be at the inspection if they want to see the property and give their opinion. The more trusted advisers that you have (realtor, inspector, PM, contractor) that lay eyes on your property the better. I prefer to have them all from separate firms so they all have a duty to you and not each other or the deal. Remember everyone has a frame of mind, the realtor wants to sell, the inspector wants to impress with his detailed findings, the PM wants to rent the unit out with as little effort/turnover/maintenance as possible - so you are able to get a detailed look through many different frames just make sure you are dealing with people you have researched and trust.

I know how stressful it is to buy the first because there is a lot of pressure on something new - and only having one leaves the business vulnerable, but as long as the numbers are great and you do your due diligence then you should be fine. I can't wait to hear about the first deal. 

@Terron Winn I am a SoCal investor that is looking at the Indy market as well. I am currently looking at the 70-140k range SFR so I don't have the contacts for the distressed properties but I can tell you that there are some great local wholesalers in Indy that have some amazing deals. Are you on any buyer lists for the major wholesalers?