All Forum Posts by: Derek Clifford

Submitted. Thank you for the opportunity.

Hello @Michael J. Beasley, thanks for the message! Yes, let's connect and find a good time to meet.

Thanks @Ritch Bonisa. Looking forward to connect.

My wife and I are headed down to Indy in a few weeks to check up on our 6 rental properties. We are looking to expand our portfolio (we are selling a California rental this summer) more into Indianapolis for buy-and-hold. We would love to get to know some local investors in person then.

Other than a meetup on the 13th (at 617 E North St) at 6:30 pm, we find ourselves completely open and wanting to learn more about the tremendous market that is Indianapolis! Our main plan is to drive around with a neighborhood map of the city and surrounding areas, focused on visiting C and B areas for SFH's and small multi's. 

@Mayank S. That sounds like an awesome way to go! It sounds like he's just handing over his wholesale cut on the deal because of the business you guys have built. I'm starting to bring lots of people to the excellent TK provider I used for my properties as well, so that may be a good avenue to look down in the future! Since escaping the above mentioned property, I've been taking the approach of using a wholesaler to source the deal, and then use a PM with a GC in house (who was referred to me by Shawn H.). I'll hope that this works out well in the end.

@Rodney Kuhl Excellent advice - thank you very much for that feedback. I've since bought another property elsewhere in the city for $17,900 and a planned rehab of $12,000 which should get me an ARV of $43,000. I'll admit, not an excellent deal and not in the best neighborhood, but still a start for me to learn the process and start to get to know some of the local players out there. I think I'm good on the financing side, but I must admit that they're used to dealing with ARV's in the $60k range, so this is something to check. Next time, I'll be looking for deals that will ARV at around that price range as well. Do you invest in your market or do you go out of state?

@Mike Knowles Absolutely the truth! There is so much room for error, and it took me a year to do my due diligence with my TK provider, and they are the real deal. For now, I'm shifting my focus to reputable wholesalers and have been given so many recommendations here.

@Jay Hinrichs You know, I've been trying my hardest to find a deal that doesn't involve the "all-in" prices that TK's require (~$60k), but I'm finding that even through good wholesaling, at a general rule, that's approximately the price point in Indy for a good long term BRRRR investment. Luckily, I've been able to save up lots of cash in recent months to get these, but why buy one when you can buy two for that money? :^) quality vs. quantity is my main dilemma now! I already know what the right answer is here, but am struggling to not compromise and have both!

Hi @Patrick Cruse and @Justin Young,

Thanks for your guys' support. Since we're trying to do this all out of state, I had to rely on an inspector during our inspection contingency to help determine what the rehab would cost (ballpark). It turns out that the particular property I was looking at needed WAY to much work (mold issues, roofing and ventilation issues, replumbing, etc.) and would simply not be worth fixing up for that area. I am also beginning to build my team out of state, and understand that some of it will just have to be trial and error, along with BP referrals.

Thank you guys for contributing - next time I'll be more specific with my question, or come to ask the the question after a little more self-education.

Hello BP community!

After already obtaining a property in Indy via a TK, I've decided to bring my business to a whole new level by working with a fantastic local wholesaler in the area. After an in-depth market analysis, I've decided that a post-1950 property on N Hawthorne and E 36th in Audubon Gardens was the right fit for a BRRRR strategy (expecting $700 / mo income in rent, $200 - $150 in cashflow with a mortgage). I'm expecting a reasonable rehab to get this rent ready, and was going to use a property management company that also does construction/rehabs to get it rent ready (that way, the PM is content in rehab quality in renting the property).

Do you have any thoughts on this approach? I am looking to close here soon, and welcome any feedback - since this is my first BRRRR, this one is important to get the cashflow going! Thank you for any help you can provide!

Thanks @Rosston Smith! This place is full of valuable info and such generous people. See you in the forums!

Hi @Aaron Cullen,

You're dead right here - the monthly operating expenses should be $300, leaving $150-$200 in cash flow, which does change my plan. And yes, since these are older properties, the operating expenses could be higher. I've only held them for 6 months and haven't seen much maintenance/vacacny/etc. materialize in this way yet.

I've heard of those calculators, but have not used them, so I'll put the properties I own in there now for the heck of it.

By the way, even though the risk is higher when you do TK and do it yourself, how much of the deal do you end up saving on yours (on average - I know each deal can be way different)? Would you get something fixed up and rented for around $40 - $45k for a deal that would $60k with a TK?

Hi @Account Closed, here's our plan:

$15k down on $60 house in Indy would be $700 rent - $200 expenses & vacancy - $200 mortgage = $300 net per house / month or about $3,600 per year. Doing this 5 times per year (my wife and I have a great W2 jobs and live in the inlaw unit of a rented 3/2 house) with our high excess active net income around +$5k / mo, I can see how this is achievable, unless I'm missing something? 15 properties should net ~$54,000 / yr if we can find the deals.

Please let me know if I am forgetting something here - I am very open to learning from much more experienced investors such as yourself!

We also have $100k in equity in another rental that we plan to use to accelerate the investing once these renters move out in April.