All Forum Posts by: Dale Hensley

Apparently you never took the time to read the thread. Will did not buy a property with squatters. He bought the home from the homeowner believing he would take possession at closing. One of the occupants then refused to leave and filed false court documents claiming partial ownership of the home. It is always better to have knowledge before speaking your opinion on something. 

this is not a big deal at all. Deal with the drivers insurance company first. Indiana insurance requirements should have plenty to cover this issue. I believe it's $50k minimum for this type of thing. Also, if you have any issues or think the insurance company is trying to cheap their way out, call First Call. They are an advocate for you and make sure that they get rvery dollar out of the insurance company. They only get paid a $15% commission in any money they get beyond what the initial insurance settlement is. Doesn't cost you anything if they don't get you anything else. 

This law does not allow discrimination and they are already looking at changing a couple things to clarify it. This is nothing more than a media push to get some ratings since there isn't anything else going to get the entire country ruled up about right now. GenCon says they won't do business here in the future but they have a contract through 2020 and Angie's list pulled their bid for expansion but they are on the way to being out of business anyway. We have no doubts as a resident and real estate investor that this is media hype that will disappear as soon as the next big thing happens and that the bill, even as written will not affect anyone, especially the citizens and the places they do business in. I was downtown this past weekend and it was business as usual and we have a big final 4 weekend coming up that is going to show everyone that nothing has changed. 

I think the biggest reason that you did not see a bunch of hard capital expense data is because it is completely on a case by case basis. I primarily flip homes but also have some rentals. Rule number one is price anything that needs updated into the purchase so that you don't have a lot of capital expenses. No matter what the year, if someone was living in it, it was most likely updated on the major systems through previous ownership. Insurance companies have all but eliminated you finding a house with knob and tube, aluminum wire or fuse boxes so they should already be done. If you have to replace the box, it's a one time cost of about $1k. Plumbing systems don't need to be updated other than water heaters which are easily and cheaply replaced. Sewer pipes can becomes  problem if trees get to them and that is a big expense but there are some things to look for before a purchase that could give you some clues as to if that may be an issue later. 

Furnaces and a/c units also wear out periodically and have been updated over the years. That is a planned expense and won't hit you hard if planned for. 

Roofing is cheap. I got a quote recently on a roof for $8k. I had a different crew do it. It cost me $1900. All I paid them was $62.50 a square and te tore off, installed and hauled away the trash. The rest was materials at about $75 a square. That roof costs you about $80 a year (about $6.70 per month) 

If you buy good houses, capital expenses are not a worry and are just part of the business and they are always planned for. 

I steer clear for a variety of reasons. 

1. Cost. Most condos have HOA fees that are higher because they include all outdoor maintenance.

2. Generally, there is only a certain group of people interested in living in a condo. Since there are less people interested, it's more difficult and takes more time to find a qualified renter. 

3. A lot of repairs may end up causing problems with the neighbors such as the noise involved while doing the work as well as neighbors who own their units not being happy with one of them being a rental due to the general nature of renter's not having pride of ownership of their residence potentially bringing down their property value. Whether that would happen or not is irrelevant to the fact that an annoying neighbor on the other side of the wall can be a huge pain for a unit that probably cost a lot more than an apartment of same size and has the same or less profits. 

If there was a killer deal in my area, I would consider it but they lose a lot of points in my mind as being a great deal because of the type of property they are. They are much harder to resell so exit strategy is more difficult. 

Hope this helps. 

I said I don't touch anything south of 38th because the home values drop significantly and it gets pretty rough. I flipped one at 41st and Illinois last year and made $27k. 3 blocks south and the houses are barely worth $27k. That's when you have to find the pockets of good and bad. 

This area isn't too bad. The SFR are maintaining decent value and there is a lot of mfr and a couple larger complexes in this area. If you are looking at the building I think you are, your price per unit is closer to a class A price and that's probably why it's been listed so long but I haven't seen that building in person. The numbers may very well work but I think you have some room to get that price down quite a bit.

I don't disagree that it would be worth a little more but not double. And I don't take zillow for a lot but I use it for pricing history and sales as well as a good link to tax history. If I was going to spend the 60k in a c area, I would by 3 single family. Because you can get them for $15-20k. 

Take zillow with a grain of salt but that area is showing just about every property at $30k. There is even a duplex across the st and zillow says that the one you are looking at is worth $32k. I would have to drive down that street but without going down there I would imagine it's not worth more than 40 and you are still going to have headaches. You could do just fine if you get good tenants as you have a large window but it would be hard to resell as well as an exit. 

I'm with the other 2. Indy is so cut up with good and bad areas that I could tell you if it could be a good deal but not without a nearest intersection. Personally, we are doing nothing at all south of 38th st.