All Forum Posts by: Devin Chaulk

Thanks @Dan Cumberland - Sent you a message

@Ryan Nguyen

Originally posted by @Dan Cumberland:

Hi @Travis Raila !  I'd recommend @Devin Chaulk .  He's an all-around fantastic guy, an investor himself, and really understands what investors are looking for.

Thanks @Dan Cumberland! @Travis Raila I'd be happy to chat on the phone sometime and talk about what you're trying to accomplish in Indy, and see if I'm a good fit! I love the city of Indianapolis and seeking out the best deals for my clients.

Hi Richard. Thanks for sharing your first prospective deal. I am actually pretty familiar with the NWI area (used to live in Hobart and Chesterton). In any case, from what I gather on Zillow (it’s listed for sale there by the way) it is currently getting $1,200 in gross monthly rent. If you get a 30 year mortgage with 20% down (Centier actually has a loan product that will allow those terms, and probably around 3.75% interest, even if you’re not going to live there), and you do a quick 50% rule calculation, you’ll be cash flowing about $172/door. What kind of cash flow are you hoping to achieve?

I'm looking to do a BRRRR on a duplex on the east side of Indianapolis, and I'm running into some snags on the financing side. It's a $50k off market deal that will have an ARV of $100k-$110k. 1. I need to find a lender who will give me a conventional loan on a non-owner occupied duplex where I can put just 20% down. This Lender also needs to allow me to do a cash out refinance (70-80% of appraised value) after the loan has seasoned for 6 months (rather than 12 or more). 2. I need a hard money lender (or private money), preferably here in Indianapolis to loan me about $30k for repair and holding costs. Any help would be much appreciated. Thank you in advance!

Redgy Saint-Germain Thanks for the suggestion. I'll read up and keep digging.

@Evan Salvador I worked with Centier. They have a product to encourage loans in moderate income areas, which this neighborhood qualified for. I'm not sure whether or not they do business outside of Indiana.

Thanks @Alexandra Yellin. I'll give you a shout if I need something!

I'm looking at a 12 unit property and I'm trying to figure out how to evaluate this deal. Most of the time, I'm looking at 2-4 unit properties, and it's pretty simple to evaluate. However, this is slightly more complex, and I'm finding it difficult to figure it out. I'm sure there are quite a few people here who could easily help me think this through, so here it is.

List Price: $179k

Gross Rent: $4,435 (1 vacancy, and 1 unit renting at $150/month by live-in maintenance guy)

Property Taxes: $4,384/year ($365/month)

Insurance: $4,100 ($341/month)

Tenants pay electrical, but Owner pays: Water/Sewer ($380/month), Gas ($230/month), Electric Com ($800/month). (What is Electric Com? Is that electricity in common areas like hallways, laundry, etc...?)

It's not in a bad part of town, and the place looks like it's in decent shape. 10 units are 2 beds/1 bath, 2 units are 1 bed/1 bath.

On the face of it, the price seems good for 12 units, but when I start to run the numbers, they don't turn out so hot. If I am able to get a commercial loan for 80% of the purchase price at 5% over 20 years, my debt repayment will be $945/month. Add in the above costs and I have $3,061/month without any management/maintenance/cap ex/vacancy costs. I would manage the property myself (but would like to figure the deal based on the cost of hiring a management company.

Here are my questions:

1. The way the property now sits, is this a deal? Why or why not? At what price-point would this make more sense? (Obviously, the lower the price, the better this deal becomes, but reasonably speaking, what price-point would you be interested in this deal personally?)

2. What changes could I make to make this a more profitable deal over the next couple years? Shift water/sewage and gas costs to the tenants? (Is this difficult/costly to do?) Make laundry paid? (Currently free in the basement).

3. What is the best way to finance a deal like this? I would not be planning on making improvements, so hard money (BRRRR) is out. If I absolutely HAD to come up with 20-30% of the purchase price, I could, but only if this turned out to be a really great deal, worth tying up all that cash.

Thanks for any insight you might have. I have a lot to learn, but I'm eager. Be gentle. Thanks.

I wanted to share the story of my first multi-family deal. It's not the best deal ever, but it satisfied the criteria I have set for a good deal, so I went for it.

Back story: I've been listening to the BiggerPockets Podcast for a couple of months and learning a ton about investing in real estate. Before this, my wife and I became landlords accidentally a couple of years ago when we rented out our house to friends (after buying a new one for ourselves, naturally). I call it "Landlord - Light". They signed a 2 year lease, and in two years I believe I had under $2k in expenses related to the property. In any case, at the end of their lease, our tenants/friends bought the house from us and we had some cash to play with. We decided to re-invest in real estate. 

We bought a double in a trendy neighborhood in Indianapolis on the east side (Irvington). Here are the details:

List Price: $169,900

Purchase Price: $162,000

Down Payment: $32,400

Debt Repayment: $600/month (I was able to secure a 3.75% interest rate over 30 years)

Escrow: $217/month

Gross Rent/Month: $2,000

I have been evaluating deals based on the 50% rule. I like to keep things simple, and conservative. Based on the 50% rule, I'm cash flowing $200/door. In the next year, we are planning some small improvements that will generate $2,200 in rent, raising us up to $250/door in cash flow. 

I'm already looking for the next deal. Many thanks to BiggerPockets!