All Forum Posts by: Mark Radford

Does your lease clearly spell out the total scope of yard maintainance expected from the tenant? 

Those are definitely state fair prices! Nobody would pay that on the street tho. We are in the resto biz transitioning into R/E eventually as well. I've mentioned here before that if done right, the cash generated on a daily basis in foodservice can be OBSCENE. (I'm sure you remember from the industry) 

The flaw with food trucks here in the Midwest is seasonality but in warmer climates it *could* be worth it. You do have a finite product capacity on the truck and also must deal with overhead of a commissary kitchen but they make money. Operator can be all in for 40k without the overhead you mentioned. Challenges could include:

Having the population to make it a sustainable day-to-day venture.

Finding quality staff is tough these days, don't care what you pay them.

Breakdowns/service

Inclement weather

Pennies on the dollar at exit 

If the truck does say, 1000 bucks and after labor/cost of goods the operator's left with 500 - 600, then has commissary expenses and a possible split with a partner(s)

Ehhhhh...burnout.

There were dozens of trucks here 5 years ago and only a handful have really survived the grind. 

Taxes are high and that house is probably at the tip of what you can get away with calling MK. Only 1 bathroom. Top end of rent & appreciation potential IMO. One side is vacant going into fall. 

 I would feel more comfortable if it were above 49th street or at least 46th. Many, many duplexes 49th on up, same rents and  walkable to the  restaurant /bar action on College ave.

 135 - 150 tops. Needs another bath for top dollar, everybody has a roommate.

Hi Annie,

You say between 39th and 40th streets. Do you have a cross street? MK is a great area but that property is at the southern edge and people are very liberal with the *boundaries* of these neighboods. Sounds like you're at the top-end, pricewise for a duplex though, with some variables dangling out there that are a little concerning. Need more location info

I'm not mixing money with tenants. How do they want to do the split? Are they really getting another fridge or is this some sort of hustle? 

So sad to hear that news. These properties we deal with all have their stories. I try not to overthink them too much and move along to focus on the economics of things. (And  I can understand if you personally wouldn't want to live there.  At least not right away.) That said if it's a good deal, press ahead! The house hasn't done anything wrong. There are discussions where investors matter of factly advise on dealing with rotted corpses, smells, drug dens, etc.  Goes with the territory.

I wouldn't rule out a modest commercial property in the mix. Triple net leases and no headaches. Tenants continuously improve the real estate at *their* expense and for the most part you are just leasing the dirt underneath the structure. You may even get lucky and land a national retailer who will sign a long lease backed up by corporate. Downside is risk of dealing with lengthy vacancies. Look for decent commercial in a gentrifying neighborhood.

Totally agree with you Annie. We owned/flipped a small commercial bldg in 46218 years ago and I have that zip as a saved search myself. I'm a native so it's easier for me to filter these properties but for an out of state investor it can be tricky.  Best thing is buy low low low over there like you're doing. We have a great town that's fairly stable and getting better every year. Good luck!

46218 is tough zip code and nobody is breaking their neck to go live there. By choice, anyway. Lots of inventory similar to yours.  In the future I'd suggest spending a little more in a better part of town.

Disagree with above poster about "75%" of neighborhoods inside the 465 loop being bad.  Broad Ripple, Meridian Kessler, Warfleigh, Butler-Tarkington and nearly every neighborhood south of Fall Creek have some of the highest earning residents in the state. Fountain Square is hot right now. There are still properties of all types in town but you have to dig!!  That's the name of the game isn't it? We're close to $1500/side for a 3/2 duplex in town. True it's easier to buy outside the loop but I don't see cash flowing a couple hundred bucks a month with a $70k - 150k exposure as a great deal, especially with little appreciation.  What's the exit strategy after the next downturn? There isn't good public transport outside the loop. Those folks MUST own/maintain at least one car. Best retail/restaurants/entertainment /jobs inside the loop IMO. Everything is happening in the city. Buy turnkey as  cheaply as you can outside the loop because you may get stuck with it for a while. Inside the loop buy the worst property in the best neighborhood like every place else. Flip or rent.