All Forum Posts by: Matthew Schroeder

A penny saved is a penny earned (or 600).

This company, TKW, is doing several architecturally interesting & strikingly modern new residential projects in the Fountain Square neighborhood of Indianapolis.  Prices are $300,000 +.

Fountain Square - TKW

@Dave Hurt Let us know what you decided in the end.  

@Lawson Ott  I have used @Jynell Berkshire of Berkshire Law in Indianapolis and she is excellent.  She is also a real estate investor herself so she is quite experienced in the perspective of real estate investors.

I previously wrote a recommendation for her here on Bigger Pockets.  Here is a link to that recommendation.

Highly Recommended Indianapolis Attorney

Good luck!

Best,

Matthew

The other consideration you have not spoken specifically about (although you may have already thought about it) is that if you do indeed do those renovations to your unfinished basement, besides the excellent cash flow that you will derive from the basement unit, you will also be significantly increasing the capital value (market value) of your property.  

After you complete the renovations & get a tenant in there, it would not be surprising if you could go & get an appraisal and then refinance and extract out most of the renovation expense (if not all, or more) based on the increased value of your property and the new cash flow.

Said another way, the cash flow sounds excellent, but don't forget that you are also increasing the value of your asset in the process.  Along those lines, if you were to try to calculate your return on investment considering both the cash flow & increased capital value, you might find out that you cannot afford not to do the renovation (notwithstanding your wife's reservations). :)

Good luck!

This is a pretty incredible sale for the City of Indianapolis!  Sotheby's says it is a record.

The buyer paid $4.8 million for a 5,514 square foot condominium in downtown Indianapolis.  That works out to a stunning $870/sf!  That $/sf may not be all that surprising in some of the larger, more popular coastal cities (NYC, SF, etc.) but in a city where $100 - $200 / sf can get you a property in a top neighborhood (Meridian Hills, Broad Ripple and others), that is quite a sale.

Downtown Indianapolis Condo goes for $4.8 MM in Possible Record Sale

A "deposit", or, a "fee"?  There is a big difference!  

Make sure to check the exact wording of your lease.

The house directly across the street (2242 N Graham) which is the same size sold for $49k in March 2016.  The (new) owner is an out-of-state investor so wouldn't be surprised if that price was on the high side.

It looks like your prospective property is a foreclosure.  It is listed at $24,300, but it has been on the market for 373 days (i.e. more than a year).

If you are looking for an appraisal approximating $60k, that may be a stretch.

@Eli Sunderland  On the variance/grandfathering issue, you would need to check with the zoning department.  A lot of zoning departments now have online tools, so you may even be able to find the necessary information online.  Good luck.

This is often a gray area, so more detail would be necessary.  Does the 3rd unit have the necessary, legal habitability requirements such as means of egress (e.g. ways to get out in the case of fire), adequate ventilation and meet other requirements?  How long has the 3rd unit been in use - is it possible that a variance has been issued and/or it could be grandfathered?