All Forum Posts by: Patrick B.

@Nick S. The area immediately around Crown Hill cemetery is rough, as evidenced by all of the houses under $50k currently listed for sale. I think most of these are SFH with some duplexes mixed in. This is generally the case from 30th to 42nd between MLK and Meridian.

Meridian serves as a bit of an East / West barrier. When you get east of Meridian, the neighborhood changes. You will see large, historic homes. There is some revitalization happening there but it still has some rough patches. See: post from @Chris Davis and Mapleton Fall Creek. Also some more duplexes mixed in here.

38th Street serves as a North / South barrier. Generally speaking, nicer homes N and rougher S. Evidenced by $800k listing at 40th & Penn and  $320k listing at 39th & Central. This is Oliver Johnson Woods area. Move slightly North into Meridian Kessler - prestige, mansions, historic homes, high prices, beautiful neighborhood.

Jump back over to Crown Hill, go north of 42nd, and you will be in Butler Tarkington. College campus nearby. Some similarities to Meridian Kessler but at a lower price point.

South of 38th, it gets rough again when you cross E of Fall Creek Parkway.

Warren Park - between 10th - 16th & Arlington - Shadeland ... I think the bullet holes in your property comment might be over dramatizing it. Might be an OK area depending on what you are looking for. SFHs. Small ranch homes. More of a rental area. Some apartment complexes in this pocket have some crime issues. Pleasant Run Parkway runs along the creek and is scenic with nicer homes.

@Rashauna Hunter If I were borrowing $50k - $60k to purchase, rehab, and hold then I'd be looking for a mortgage. I think the Fannie Mae Homestyle Renovation loan and FHA 203k loan are both decent products in certain situations.

I think an unsecured loan of this size would be difficult to come by and, if you found one, the terms would not be as favorable as a mortgage. If the goal is to hold the property long term then the terms of your financing are paramount as it impacts your cash flow quite a bit.

Hi @Rashauna Hunter. Congrats on getting the ball rolling and moving forward with your goals. What would the loan amount be to acquire and rehab the properties? 

@Matt SpeerThat sounds pretty encouraging. If it's the house I think it is then I think you're right in terms of the area supporting higher comps. Very nice area. Popular neighborhood. Good schools. Affordable homes, at least relative to Meridian Kessler, that attract many first time buyers / young couples. I'd ask your realtor to pull some comps on recent sales for you to compare and contrast. 

@Matt SpeerThis house seems more like a finished product. If you buy it, what will you do to create equity? New kitchen? Add a bath? Or do comps suggest the home is priced lower than it should be? 

If it were me, I'd be looking for a home with more problems. The more problems I can fix and the more updates I can make, the more equity I might be able to create. 

@David LemI just had new cabinets installed by Miller Maid Cabinets. They are one store, local outfit who has been in business for several decades. I had them install an entry level Merillat cabinet. For a recessed panel, square, painted white cabinet + install their total price was lower than Home Depot, Lowes, and the one other local shop I tried (Limpus Cabinets). 

 I think they actually fabricate custom cabinets, too. Alisa was my contact / designer and she's very knowledgeable and personal. Good overall value. I'm happy with it and would use them again. Link: Miller Maid

Cheers to a successful flip!

It sounds like you're off to a good start, @Matt Speer. I am in the midst of doing something similar, though I am paying cash for the renovations and completing them over time. In hindsight, I should have looked closer at the renovation loan. It would have been nice to have everything 100% complete much sooner as opposed to living without a full kitchen, as I am doing now! 

In addition to the FHA 203k, I would consider Fannie Mae's Homestyle Renovation loan. A good mortgage broker will be able to compare and contrast these products for you. You might save a good deal of $ on the Fannie product with less mortgage insurance and perhaps a lower rate as well.

I am not a tax professional, but I think there is some type of tax law that states the following: If you sell your primary home after living 2+ years in it, you do not pay capital gains tax on the proceeds. If you sell in less than 2 years, you do pay it. Check with a tax pro and see if it affects you.

Here is a brief overview of many of the neighborhoods closest to the city center: Downtown Indianapolis - Neighborhoods and here is a recent news article highlighting some of those same communities: Neighborhoods once rundown now Indy’s hottest. This website will tell you what neighborhood a specific address lies in; also has some basics (schools, hospitals, etc) for each area. You can also select a neighborhood from the drop down menu to see it on the map: Indy.gov neighborhoods

@Easton G. Curious how your project ended up. Success? Would you use the Homestyle product again? If you completed it, were you able to secure a nice equity position on the home? Thanks. 

Welcome to Indianapolis and to BP! There's an abundance of great resources on the site to help you get started. I definitely recommend the podcasts, for one. In fact, an Indy wholesaler made an appearance on the show: https://www.biggerpockets.com/renewsblog/2014/10/09/getting-started-real-estate-wholesaler/