All Forum Posts by: Ken Cooper

Congratulations! I picked up my first rental in Indy two months ago.  Before you think about converting and renting out the garage make sure that it would be ok with the city codes. 

Ken

Thanks @Chris Clothier It was a pleasure to meet and get to ask you questions face to face at the LA meet up a few months ago.  I really appreciate your encouragement.  

Ok, so here are the numbers, and some of the obstacles. 

Purchase price  60,000

Rent  795 

PM takes 10%

After PITI, 10% Capex, and 10% vacancy the property cash flows $216

Total closing cost ( what I have in) 13,500

Now, some of the bumps.  The original list/contract price was 62,500.  The appraisal came in at 58,000.  The turn key company contested it and they met in the middle at 60,000.  Great for me as the numbers worked at the original price. 

 Next the tenants. The turn key sent us a clean bill of health on them, but when we googled them the first thing that came up was an arrest for drug possession.  I wrote a forum post about it. Would you rent to these tenants. Not sure how to link to it.  In the end after much advice from BP members we rented to them.  

Then we found out that they had a pitbull.  They had told the TK company that they had a Terrier.  Thats a bit different.  Our insurance co. wound not give us policy with that type of dog.  The TK company handled it very well. As soon as they found out they went over and asked the tenants to remove the dog from the property, which they promptly did.  Maybe because one of the renters is expecting a baby.  

@Mike J. @Dan Baker @Simon Gill

@Keith Anderson thanks for answering that for me Keith. 

@Ali Boone Thanks Ali.  I got a flight for my wife for her birthday with Pontous,  we took 3PD up. Her grandmother had a Cherokee.   

I closed on my first investment property in Indianapolis last month and got my first check a few days ago. Thanks to BP I am now a real estate investor! I got the property through a Turn key company run by a BP member and they were great. There were a few bumps along the road, but the company handled them all well. The problem is it was so easy that the process left me wanting more. I am not saying that I want problems. More that buying Turn key I payed about retail, and I would like to be able to add value to a property and my net worth. I am leaning toward the BRRRR method. However doing that from far away seems like it could easily go wrong. I met some good people through the process and that is a good start. Any advice from those who have gone the BRRRR rout from afar?

Thanks @Brandon Hall

I live in California, and am closing on my first rental property this Friday.  The property is in Indiana.  My question is will I need to file a tax return for the state of Indiana?

Ken Cooper

We are getting a larger deposit.  Credit is good, as is work history. I should also add that this property was purchased and is being managed by a turn key company.