All Forum Posts by: Patrick Gilbert

@Kenny Hallgreat advice, thank you! I think what you mentioned is definitely key with all types of rental strategies, but particularly important in the STR and MTR space as they are more of a "hospitality and amenities" experience than a LTR. Will definitely keep you updated on my journey!

Haley and Sparkle,

Thank you for your questions. I am by no means an expert, but there are definitely social media REI groups dedicated to investing in Indianapolis. I would say the two main groups I go to are "Indianapolis Out of State Investors" and "Central Indiana Real Estate Investors Association" (otherwise known as CIREIA). CIREIA also has meetups pretty often. Definitely check those two groups out!

There are not any REI meetups specific to MTRs that I have found, but I am sure you can connect with investors doing MTR if you attend some meetups and post in these groups.

Hope that is helpful!
Patrick

I am looking to connect with someone who invests in mid-term rentals in Indianapolis. Just finished reading 30 Day Stay, so I have a good base of knowledge about the strategy in general but want to learn more about how to execute it in Indy specifically. Hoping to learn from someone who is already excelling at this strategy and add value to them as well as build my MTR portfolio. Looking forward to connecting!

Patrick

Hey Chance, I’m also just getting started investing in Indianapolis and have found myself in a similar dilemma. The main issue it seems is that home prices have outpaced rent in the last couple of years so there just isn’t a lot of cash flow right now. Now, if you really look you can still find properties that can cash flow, it is just much more difficult than it was 1-5 years ago from what I’ve learned. Now with that said, if you plan to occupy this property for a year then rent it out, it does appear rents will continue to climb pretty swiftly so it is possibly by the time you are ready to rent it out you may be able to cash flow. On the other side of things, you can also look into buying a 2-4 unit property to house hack and live in one unit then rent the rest. This is kind of the best of both worlds if you’re just getting started. Hope this helps!

Perfect, that makes sense. I appreciate the insight!

Russell, I couldn't agree more with your take. As a new investor myself it is disheartening to not find anything after looking for a few months. A lot of good deals that I've been interested in, but when I make a move and try to write an offer either something goes wrong with the property or a buyer with more experience/money just blows my offer out of the water. Planning to just keep grinding until something goes my way. Happy to chat if you'd like!

Awesome, that is very helpful information, thank you! If you refinance after completing rehab on a property, can the refinance numbers be used to reconfigure the depreciation schedule/amount or is it always based on initial PP?

So I understand the concept of depreciation - appreciating asset that degrades ("depreciates") over 27.5 years so you get to take a loss on taxes. My question is: how is that depreciation number determined, specifically when using the BRRRR method? Is it determined via initial purchase price or can you use ARV appraised value? It could obviously vary greatly depending on the amount of rehab needed. Thank you!