All Forum Posts by: Jordan Falls

I forgot to update my findings so here we go:

Cash flow of the properties was surprisingly correct.  They would have grossed $2000 per month while fully rented.  Rents were just right.  I ended up dumping the properties; however, because learned from a local that the specific neighborhood the units were located in was heavily infested with drug activity, mainly meth and heroin.

An investor from the area purchased them with full knowledge of the situation.  It didn't seem to bother them as much as it did me.  Unfortunately with this deal, there was a "catch."  The buyer was more concerned with the great numbers than the "possible" illegal activities that are prone to the area.

Cash deals on both ends.  Looking to close next week.  In the end, I broke even.  Profit was offset by closing/holding costs.

Originally posted by @Jorge Barboza Jr.:

@Jordan Falls those look like great returns. How long have you been getting those rents? 

 I just got the properties.  I do not have tenants yet, but previous owner has documented data (cancelled checks, rent receipt copies and lease agreements) showing they consistently received rents of $450-500 per unit over the last 12 months that the units were rented.  Previous investor passed away and the estate dumped the properties for quick cash.

I'm looking for someone who is invested in the area, to see if these are reasonable rents.  The properties were sold as is/where and the investor who originally owned the properties had passed and kids did not have knowledge of any of the income produced by the properties.  If the rents are what the previous documentation shows, I plan to hold on to them, if not, I'd like to put them on the market.

The numbers look great on paper, but as I mentioned, I am unfamiliar with the area, so I'm looking for insight from someone else who may have properties in the area.

Hello all,

This is a question pertaining to investing in Northwest Indiana (NWI). I was just inquiring as to whether anyone has any investment properties in Starke County, Indiana; specifically Knox, IN.  I know there is a limited economic drive for the area, and was wondering if there were any success stories of people maintaining a successful buy and hold portfolio in the area.  I recently bought properties in the area and am wondering if I should try to sell them or keep them as rentals.  I purchased four units for a little under $80,000 total.  I'm looking at $500 a month for each unit, $2000 gross monthly income, $24,000 annual.  Expenses are roughly $3000 annually.

If anyone has experience in the area, any insight would be great.  I'm not sure if my rent expectations are too high or not.  The units are all 2 bedrooms 1 bath units with roughly 700 sq ft.

Thanks in advance!

I currently am not invested in Valpo. But I have investments in NWI myself. If you're looking for an investors agent, I can help you out. I specialize in helping investors. I do not buy and sell real estate for the income purposes. PM me with any questions you may have!

Forward me details. I have clients that may be interested! I'm assuming the property is off market?

Thanks for the info! Always good to hear how it works out for others.. Sounds like Sheriff's sales can be a little discouraging. I think I may try to stay away from them for the time being.

Jim Carson Adrien S. Thanks for the insight! I was pretty sure that the tax sales were not going to be something I was interested in, unless it was vacant land. Have either of you tried sheriffs sales and had any luck? I know I can go the wholesale route, but I'm always looking for the best deals, no matter what the case may be.

Hello all!

I have a quick question for those who are invested in the Northwest Indiana (NWI) market.  I have had many of my investor friends talk to me about the monthly tax sales at the courthouse in Lake County. I have not done much research on the topic, because I prefer to have an immediate transaction as opposed to investing and having money tied up for a year.

My question is, have any of you had a success story from tax sales?  It is my understanding that if you win a bid on a property your money is tied up in an interest bearing account until one calendar year has passed, giving the property owner a grace period to become current on their property taxes.

I realize that there are many deals to be found at these auctions, but I'm wondering if it is actually worth it.  My biggest concern in locking in liquid capital in an account for a year with the possibility of "no deal" and having the ability to invest it somewhere else.

Any thoughts or insight would be greatly appreciated.  I have no experience with tax sales and I know these kinds of sales can vary state by state and county by county.

Thanks!

I never knew those statistics from the Recession of '08.  That is some good information to have, thanks for sharing.

Now that I am thinking about it, you are right, prices don't fluctuate much; however, I have noticed, the cost of multi units is on the rise according to the comps on the MLS. A lot of out of towners are snatching up most of the larger properties as investments.

My office has a fixer upper property currently in contingency and we had many out of town calls inquiring about the property.  I'm not sure if other people know the same stats that you shared, but something is bringing A LOT of out of town people to the market.

Just something to think about those who are "waiting" to make a move.  Houses are moving extremely fast right now.

I believe I just requested to join the right group. I'm a licensed Real Estate Broker in Indiana and I specialize in investment real estate. I also own a company that flips homes and have an extensive list of great contractors, inspectors and loan officers for those who need them. Looking for as many connections as possible. Anybody needing a property manager or agent to represent you in buying or selling of any type of property (residential, multi-family/income, commercial or industrial) get in contact with me on Facebook or on Bigger Pockets and I will help you out. My contact information can also be found on my bigger pockets page. It was a great idea to start a FB page, should have thought of it myself! Thanks!!