All Forum Posts by: Shawn Holsapple

For the most part and/or a "rule of thumb", I always tell new Indy investors to stay out of Center Township [around downtown]. Not to say there aren't great pockets in Center but overall, that's a tougher area to make work - especially remotely. Lawrence over all is not bad, there are a few very rough areas to stay out of, however.

I would suggest relying heavily on your property manager for input since they are the ones that have to service and collect rent. Another "rule of thumb" I've learned [the hard way] is that I won't buy anything with less than a $700 rent. This automatically filters out most of Center Township and most of the older homes -which is rule #2. I don't own anything built before 1940 [again, ask me how I know].

Your listing example looks decent and has had a fresh rehab. It's in a decent part of town. The downsize is the age of the structure and the lower rent amounts.

I would much rather have one or two good SFH rented @ $750 with a PP of $55k each after rehab than one large, older double [this is why I have sold off all of my doubles and only have SFH now]. It's easier to sell in the future [home buyer or investor will purchase vs. double will only be sold to another investor] plus, the rent per BR is higher than in a multi-unit.

I hope that helps.

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@William T. , The Greater Indianapolis Metro area consist of 9 counties and most areas are very good. Unlike most cities, our good & bad areas vary by block and not zip code - so, it's hard to farm like that.

That's where a good team on the ground can help you select a product that fits your needs.

As a general "rule of thumb" - Center Township in Marion county is the worst by far and I recommend to not start there. Everywhere else is great.

I own several rentals and least to own homes myself and did over 65 wholesale deals this year and I would be glad to help you out. Also, I typically do not like to do the typical "assignment" wholesale. I always close on the property myself and then sell it to buyers like yourself. This keeps the transaction much cleaner.

@Jerry W. those are some aggressive CAP Rate goals. Those are usually found on the lower cost rentals that never turn out as good as they look on paper. As a rule of thumb, I would stick with rent amounts over $700-$750 for a SFH. This will get you much better tenants, lower vacancies and a solid [real world] return of 12%-14%.

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Another thing @Deryk Kennedy , If you don't already have a LLC or Corp, I would get one before the end of this year. Most banks like to see a track record of 2-3 years before they really get comfortable with working with you. So start your LLC now and it will count as 2012.

Also, as mentioned above, I would highly suggest paying a good corporate attorney $300 or so to create the LLC for you. It will be worth it in the long run to ensure it's setup correctly vs. doing it yourself for $89 online...

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@Deryk Kennedy again, you are the right track. Even when I only had one property, I still used a property manager. I'm a firm believer in paying professionals to do work they can do better [and cheaper] than me.

I know some people might disagree and say do it yourself and keep "all" the money. I, on the other hand, will gladly pay a PM 10% or $75-$100 per property to deal with the phone calls and other issues.

Everyone should have a personal "hourly rate" to work with and then see if it makes sense to hire someone or do it your self. Once I got my head around this I now have to problem farming out nearly everything I can while I focus on what I do best [acquisitions/sales and Call of Duty...]. For example my personal rate is $150 per hour, if I hire someone to mow my yard that would usually take me an hour and pay them $25 - it didn't cost me $25 but rather, it saved me $125!

So if I would spend more than an hour a month dealing with tenants, then it's a cost savings by hiring this out to a PM - not to mention the headaches and time savings.

With that said, you still should know enough about the subject that you can monitor the PM and be sure they are doing a good job. The previous mentioned "ABC's of Property Management" is very good plus, Mike Butler in Louisville has a great PM program that is very helpful.

Do you have your goals set yet for next year?? The episode 77 podcast mentioned in my previous post will get you on the right track very fast. There is no reason you can't have at least 4 properties by this time next year!

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Welcome @Deryk Kennedy !

You are defiantly on the right track and on the right site.

I'm glad to see a young person thinking about their financial future and looking for passive income sooner than later. Don't wait until you old like me to decide that it would be nice to have enough passive income monthly to cover your monthly bills [this is out of the "Rat Race" or Financial Freedom]. You only need 15-20 doors netting you $200 per month, after debt service and all expenses, to achieve this. It's not as hard as one would think - especially here in Indiana.

I would suggest getting started on a relationship with a local small bank or credit union so you can utilize them as soon as possible for purchasing assistance [as long as you understand the difference between good and bad debt].

Good luck!

If you haven’t already, please read/listen to these books ASAP!

Rich Dad Poor Dad

Rich Dads Cash Flow Quadrant

Rich Dads Increase your financial IQ

The Real Book of Real Estate

The ABC’s of RE Investing

The ABC’s of PM

Rich Dad RE Tax Advantages

The E-Myth

The 4 Hour Work Week

http://flip2freedomacademy.com/ - free e-book

Flip2freedom episode 77 - podcast

BiggerPocketsPodCast

Wholesaling101 You Tube Channel

Kent Clothier - Memphis Invest channel

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Great heading @Jerry W. !

It sound like you've done your homework and are definitely on the right track.

Unfortunatly, the rest of the planet wants the same thing.

Good inventory has been getting harder to find over the past 9 -12 months. I can, however, still help you track down some properties that fit your needs.

What CAP Rate or return are you looking for? Any other criteria to help narrow down your needs?

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@Thomas Hart we have some local small State banks & Credit Unions that may do that for Hoosier residents. Do you have a partner or family member you could do a JV with that lives here?

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Welcome @Steve Cook !

It sounds like you are on the right track with the books you are ready and the markets you are evaluating. May I suggest looking strongly at Indianapolis? I think [along with thousands of other out of State investors] it's one of the best markets on the planet!

Let me know if you have any questions about the mid-west.

In the mean time, here is my favorite list of books & pod-casts to check out:

if you haven’t already, please read/listen to these books ASAP!

Rich Dad Poor Dad

Rich Dads Cash Flow Quadrant

Rich Dads Increase your financial IQ

The Real Book of Real Estate

The ABC’s of RE Investing

The ABC’s of PM

Rich Dad RE Tax Advantages

The E-Myth

The 4 Hour Work Week

http://flip2freedomacademy.com/ - free e-book

Flip2freedom episode 77 - podcast

BiggerPocketsPodCast

Wholesaling101 You Tube Channel

Kent Clothier - Memphis Invest channel

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@Robert Anderson AND everyone else, please listen to this podcast for your new years goals. I did it this year and crushed my [insane] goal by August!

Flip2freedom episode 77 - podcast

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