All Forum Posts by: Kat He

Hi @Ken Derby, I've been investing in Indy for about a year now. Always happy to connect with fellow Indy investors!

Hi @Adam Sankowski, I do this regularly. There's a post here that I followed and I think there's also a BP article detailing this somewhere. But yes, your assumptions are correct. The contractor provides an estimate and you will send this to title saying you want to add the rehab costs onto the settlement statement. At closing, you wire acquisition + closing + rehab costs and the rehab funds will be in the form of a check (or can be split up like 'draws'), you can have your contractor pick it up or have it sent back to you for you to disperse. 

It's true that it's not a lot of time during due diligence to come up with a perfect rehab estimate, but if you're worried you won't be able to refi enough out, you can always have the contractor be more conservative with the estimate. Of course, in this case you will need a trustworthy contractor who will credit you back any overcharge. Happy to chat further.

Hi @Andrew Lake, would love to connect! I've been investing in Indy for about a year now and aim for a similar price range. I've found that most of the small MF are older and/or in rougher neighborhoods, but it's rewarding when you find one that works. 

Hi @Diane Tycangco, I invest in Indy mainly for cashflow. There are areas that are revitalizing so there's opportunity for appreciation, but I wouldn't bank on extreme swings. Mainstay is pretty big and can be a 'one stop shop' for an investor--selling fixers & turnkeys, rehab mgt when you buy from them, financing. 

@Prasanth Meiyappan I do :) PM'd you 

Hi @Sarah Giffin, it's great to hear you're just about ready to jump in. If you can share your breakdown of expenses, I think folks would be able to better chime in on whether the cash flow is accurate or over/underestimated.

I read this somewhere on the forums before and found it helpful: offering "sight unseen" is not just about physically viewing the property, you can "see" through the lens of your team and the information available. Photos and description on listing, assessor card, past listings + listing history (Hotpads, Zillow), tax bill combined can say a lot about the rehab numbers, problems with the prop, and seller motivations. Some folks will not feel comfortable offering without physically seeing the property, but they may be at a disadvantage since many OOS investors do lock up properties just based on the info they can gather. 

Agree with Floyd, I think even up to 46th may not be ideal. Decent area for rentals though, in terms of cash flow and rent to price.

As Andrew mentioned, if the property is ultimately worth 100,000, your lender will likely loan you 75% of that. Think of it as putting 25% down in the property as if you were buying a property with a loan in the first place. 

50K HML + 15K rehab --> 65K all in for a 100K ARV property
Bank lends 75% of 100K --> 25K "left" in the property, 75K loan back
75K loan pays off your 50K HML --> 25K remaining
25K --> you got back your 15K in rehab and made 10K on top

In this scenario, you get back more money than you put in. If you get another 50K hard money loan for the next one, you now have 50K + 25K to use instead of the 65K in the previous one.

Wylie Womack from ENC or Neil Perry from Indianapolis Home Inspectors. When one is booked, I use the other. They're both great!