Hello,
I'm a new investor and am currently in the Indianapolis area. I would like to use the BRRRR method. However, I currently am self-employed since June 2021 and before that made decent money. I am finding it hard to figure out what the best way to start for me is. I have about 75k cash, and about 30k equity in my primary residence. So, I would need a loan of some sort for this market. With my current income and expenses it would be difficult to qualify for a traditional mortgage. Mostly because I don't have solid steady proof of income yet from my business.
There are a few depressed areas (Anderson/Muncie) around Indy that I've looked into and they're super cheap (10-20k max but needs moderate rehab). With the depressed areas though I'm worried about not being able to rent the property and the quality of tenants. Anderson's population has dropped about 2k within the last 10 years. Muncie's has grown by about 5k.
So to sum it all up, my main questions are:
How do you recommend getting additional cash for the purchase/rehab?
How do you estimate the cost of a rehab? I am somewhat handy and can do the cabinets/drywall/paint/flooring/etc.
Does anyone have experience renting in depressed areas? Good, bad or indifferent?
This is something I really want to get into and I flipped my previous primary residence (bought for 30k, rehab about 20k, sold for 100k) so I do have some experience.
