All Forum Posts by: Rusty Scott

 The best flip opportunities in Indy are going to be in the areas either near downtown or Meridian Kessler/Butler Tarkington areas. These are going to be older homes (1900 to 1930s). These are very popular areas with great values. My own street (near Butler University) has seen a constant flipping activity with incredible margins. That said, the competition is fierce for these properties, and they are major, to the stud rehabs, with rehab budgets in the six figures. But they have all sold within matter of days on the market. The area closer to downtown has a lot more potential inventory, but it may take a bit longer to turn. 

Feel free to PM me if you want more specific details.

Location wise, the first one is significantly better location than the second one. I would not even consider the 2nd. 

Greg, do you already have the property picked out? What are you looking for exactly from a broker?

PM sent. 

 Jason,

No, SFHs. 

There was some discussion above about Zillow estimates above. I agree that for value they need to be taken with grain of salt, however I do think their rental estimates are as good as anything else, and a lot better than rentometer. I also believe them better than the MLS comps, as such a large amount of rentals don't even go on MLS, but almost always go on Zillow.

As a local Indy investor, I would probably pass on this deal. That's not that great of a price for that area. Just outside of Irvington is a big deal....as in most parts of the city, being "just outside" of a good area means you are in a marginal at best area. 

I don't look to buy anything in town that rents for less than $800, and $900+ is even better. Particularly when you are looking at a home that is nearing 100 years old. Nothing wrong with older home (I live in one), but deferred maintenance can be an issue. 

That area is red hot, started before the recession, kind of slowed, and has now taken off more than ever. And yes, walking and particularly biking are immensely popular in that area. The city built what's called the Cultural Trail a few years back, and it has greatly helped both Fletcher Place and Fountain Square. 

As far as after 5p...I'd say there is actually MORE activity then. The area is full of younger people who live around there, and there is a lot of nightlife. Downtown Indy in general would be unrecognizable to you compared to late 80s/90s. I was a kid at that time, and recall how it was pretty much Naptown back then. The first big change was the construction of Circle Center Mall in the early 90s. It's improved every year since then and is the place to live these days. The amount of new, high-priced (comparatively) apartments coming on market over the next few years is amazing. 

That property looks awesome Bob. I actually have a good friend that lives very near there, who also has done an amazing reno, and his place is probably close to that value. The price point isn't out of line for that area, clearly would take a certain type buyer who wants something unique, but I think it's pretty sweet. 

I would think 7% is a lot closer to reality than 15%. Looking at Cali RE from 2009 to 2015 is pretty good cherry picking, considering 2009 was a once in a lifetime type scenario. One could have tripled their money in the SP500 from March 2009 to March 2015, with a lot less effort. 

The question for everyone here is where to invest NOW. If historically, SF rents increased by 7%, it's entirely possible that they are entering a period of near zero growth for several years to come. At some point fundamentals such as median income do come into play. 

 Bob, I'm certainly no expert on SF real estate. It was my understanding that anything built prior to 1979 and 2+ units fell under control of the rent board. Would seem you'd need to get out of the actual city into the greater bay area to get away from that, how many true SFHs are rented out and how many units are post 1979 actually within the city?

What rent controls do, it seems, is distort the market, by greatly limiting the market value supply of units. I've read there are something like 30k units in the city that owners leave vacant rather than deal with the rent boards, as it is such a liability being a landlord there.

I only have some anecdotal experience talking with a couple people who own these type of units.