All Forum Posts by: Milos N.

Hello good Peeps of BP.

I got a few deals from Wholesaler, and one of the struck me as really really good. It is a multi family 1.5% rule deal. The area on Trulia looks green, schools are so so. This would be my first deal. And I have never been in Indy

The area is east of Riter Ave, bounded between E Washington on the North and S Brookville.

There is at least one school with the score 4. And it is low on crime.

So is there anything I should be aware of there before pulling a trigger???

Thanks in advance

Hey thank everyone for answer. I am not @Nikki N. I am his brother, and we are doing this together.

I am in the Bay Area, he is in China. We want to build a portfolio and are starting in Indy.

We got a reference from someone on this forum that that guy is a great PM. 

So we contacted him, he answered all my questions, was many years in business etc.

We also found an agent by contacting many of the best agents on zillow. One of them had one guy on their team wanting to work with OOS investors. 

He seems ready to do stuff we expected (go video record properties, answer questions, etc).

However as per David Greene's book we wanted to cross check with the PM, and the PM initially agreed that it is a smart idea that he 'vets' places because he will be managing them and Indy can be tricky block to block.

Now he tells us that even a duplex where a rent is 1.5% is not good for money reasons (pay attention, he didn't say it is a bad neighborhood, or an old house, or anything else. No, he said the deal is bad because ROI won't even be 6%).

That doesn't make any sense. I would get it if he said "don't buy there it is dangerous", but this just rubbed me the wrong way.

I presented how i see numbers and showed the calculation that it is about 12% ROI and ask him to clarify what he means. He never answered.

He just sent a few properties that his wife is hoping to get 3% as a buyer agent 3 days later :).

Yeah we are trying to not fly often, and we are trying to buy fix rent. So BRR part of BRRRR :)

Houses where I live go 17% over the listing price and 40% of the time with cash offers (yes people cash out 2 million dollar crapy 1907 houses, amazing).

So we are trying to do it OOS.

Sorry for the long post, and thank you guys, you are amazing!

Thanks everyone for answer. I think it would be a flip, because I am afraid holding that (its super old).

Yeah I know a contractor would work, I might just do that. Or just skip it. This was more to see should I trust the estimation of the person that has sent me this deal.

Thank you for your answer. 

The guy that is selling this is on BP, we could ask him :)

They promised it is no more than 40k :) And gave those pictures.

They also promised it is 3/1 in reality it is not.

This is the toughest part for me. I haven't (yet) read any books on estimating (looking to get the J Scot ones next).

here is what I have seen today in my email.

Its more than a 100 years old. It is 2/1, but it has a small house attached to it, that could be made into additional badroom so 3/1.

it has been vacant for 8 years. In a climate that is cold (Indy).

Would you think that 50k in rehabs would suffice for something like this? lets say for a flip.

I know its hard to say, but please give me your opinion.

A super basic question here.

More about accounting than taxes.

I'm just getting in the game, and I am going to make a business account to deposit my rental checks to.

However should I create multiple business accounts, one for let's say CapEx, one for Vacancy, and so on.

Or should I just have one with the profit and the rest.

What would you say makes sense?

Thanks in advance.

@Mike D'Arrigo thank you for the answer. I see a few houses for 50k (and less) right next to that street. The crime is similarly low. I am wondering to pull the trigger and rehab them, and hope for the best. The way you describe it, it sounds like it would be worth the shot.

Wow @Spencer Gray thanks for a thorough answer

Hello peeps,

I am looking around in your city and Im trying to understand a little.

How would you judge the neighborhood bounded with 46th and 42nd, and Promise and Hillside

Like for instance this house:

4526 Primrose Ave Indianapolis, IN 46205 

Don't get me wrong, I am not trying to buy it I would just like to understand those few blocks. And maybe try and focus there.

Would You say that is B? Or maybe C? Crime seems to be not as bad as in some other places. Schools are not terrible, walk-ability not so bad.

So please hit me up!

Thanks in advance

 It seems it is indeed the same place. So its even worse than I though