All Forum Posts by: Marcus F.

Hello David, 

I’m originally from West Lafayette/Lafayette and currently invest there from California. The market there has really taken off in the last two years, almost to a shocking degree.

Good luck.

Marcus

Bobby,

I also have property in Lafayette, is this in the downtown area? Are you local or managing repairs from a distance? Has your PM made specific recommendations to maximize rent for the area and grade property?  If so that should determine fixture level/price. 

Electrical, many of the older homes in the downtown area do not have grounded wiring. Is that case here? Have You had any experience with that? If that is the case you can install GFCI outlets in every drop, or rewire the whole house 3-5k for that area. GFCI outlets are Inexpensive by comparison, having said that, house wiring has a estimated life span, where is yours at?

Joist are very simple to sister, provided the sill plate and rim joist are solid. 

Is this your only property in Lafayette? I would like to know how this turns out and what your experience is in the neighborhood your in. Feel free to send me message here BP.

Also, I can tell you who I use for repairs, Property management, and inspection(most important).

James, 

I’m retired military, originally from Lafayette, now living in California. I own several units in Lafayette and will only invest there. It’s a sold market. You don’t need to invest huge amounts for good returns nor over leverage yourself. 

Biggest thing is figuring out what class/level property you are comfortable purchasing and then find an agent and property manger you trust. Trust but verify.

My last purchase (Jan/Feb 2020) at 80k has a 24% ROI and was on the MLS. This home was completely refreshed (ready to rent) and I required a complete home rewire into the purchase.

 My cap on investments is $120k. Goal, three to four units a year and NEVER sale.

Just don’t get in a hurry, numbers don’t lie. If your still active, put that BAH to work.

Good luck, thank you for your service.

Hi @ Petter Korty, 

I also buy in Lafayette (home town) but I live in California. All the properties I have purchased were MLS listed and all under market value. In August I purchased a 3 bed, 1 bth 780sqrf for $65k and rents for $900. I put $4k in that property prior to rent. A "good deal" is a relative term. I use the Deal check software to screen all my properties if the math doesn't make since I walk away and don't look at that property again unless the price moves. My key is the property manger, who screens the property and tells me exactly how much they know they can rent it for prior to me purchasing. Also my agent, owns the property management. Again, I'm in California so a trust but verify relationship is required. The only property I have physically walked through was my first. This also opened the door to pocket listing and off market knowledge.

 My goal is to purchase four to six properties a year and that is driven buy the amount cash flow they can produce. I’m never selling them so all the other numbers don’t factor or matter to a degree. I make sure I get a a very good inspection on all. 

MLS or off market, it's relationships that can bring you the deals.

Question: Are you trying to to rent to students? I don’t but I am curious to here from someone in the area who does.

I would add, make sure you know your home state requirements as well. California for example, will require you to register your out of state business, I believe it is $800.  

@Ashleigh. I am currently closing on a duplex in Lafayette. I used First Merchant and it worked out great, 30 year fixed, 25% down @5% for duplex. I'm up to three doors now. The prices for for the smaller single homes, 700-900 Square feet, seem to have jumped about 35k in all neighborhoods just over the summer. Also, Just read in the JC that they approved 500 unit build for the city. Lafayette is growing quick. Good luck.   

@Ashleigh T Lambert

Just spoke with, First Merchants Bank, the local Lafayette branch. They do 30 year fixed, up to 10 investment properties. Janene Groft.

Also, I stated above that I would "never" take a balloon loan. I should have stated, I would "avoid" a balloon loan if possible. Never say never. 

@Ashleigh,I am hesitant to recommend property management, as this is my first rental, but I'm using Cathy Russel's team. She has been in Lafayette for years, her team is very helpful. As of now everything seems to be going well, they are managing some repairs I requested on my new rental. Cathy has great attitude and has giving me confidence in her team. Nikki Strum runs the management side. Nikki basically told me she would spoon feed me on any issues she comes across with the property. Investing from California is a bit nerve racking, and I am a strong believer in the trust but verify mindset. I fly back at least twice a year and plan on retiring there.

Also, if you talk to Cathy she can send you daily listing as soon as she sees them, or when she comes across other opportunities before they are listed. 

What area is your duplex?

Loans: I would never do a balloon rate for buy and hold, especially with the way rates are now. I am currently tracking down a local lender for my next investment property. I will post an update here when I find something.

Also, have a look at HELOC's, you can get 30 year term, has the purchase power of cash. If you don't want to hold debt on your residence you can always take mortgage out on the investment property after you purchase it with cash/HELOC and then pay the HELOC/cash back. I'm in the sub 80k market over there, so I'm comfortable with that amount of risk, with cash on hand.

I just purchased my first property in Lafayette as well, single family. I was having issues being competitive due to cash buyers. The market is crazy. I eventually decide to to get a HELOC, and used it for the purchase. Worked out great. However, my next I'm going to go with a conventional loan, try Purdue Credit Union. I'm living in California but I'm originally from Lafayette.