All Forum Posts by: Sean K.

Quote from @Jaron Walling:

@Sean K. Carmel and the majority of Indianapolis are polar opposites. 

There's a 0% chance you'll find cash-flow in Carmel. Around the greater Indy area you can find, negotiate towards, or create it. This depends on the neighborhood (sometimes street-by-street), strategy (value add?), and ROI you're aiming for.

We have a rental shortage. If it's a nice rental at/or slightly above market you'll find qualified people asap. People want houses over apartments especially if you have a basement or garage. 

Thanks Jaron for your reply!

If lets say I buy this house: 10815 Broadway St, Carmel, IN 46280

Purchase price: 279,000

Interest rate: 8.5%

Down payment: 25%

Monthly payment (including tax and insurance): 1,835

According to Zillow Rent Estimator the house can rent for: 1,995

(Management I will do myself, I will repair everything needed before tenant moves in, to reduce repairs needed for first year).

Monthly cashflow: +$160

Is that realistic or am I missing something?

(I guess first 1-2 years cashflow will be only 160 but after then I can raise the monthly rent another 50-100 then cashflow will be 210-260)?

@Carlos Quiros

I agree with the above. For me the rule of thumb is if I don't see myself living in that area then why will I get a good tenant that is willing to live there.

If someone feels conformable living in such a neighborhood most likely it will be easier for them to deal with the type of people that live there. If you never see yourself living there I will not buy there. When trouble starts you will get tired dealing with it and you will just end up selling house for a lost since it's not a good area it will be hard to find a good buyer that is willing to pay more than you paid for the house.

For me if I buy a house somewhere it has to be a place that I see myself living there.

I'm thinking to buy a rental property in Indiana not more than $350k.

Where you recommend Indianapolis city or Carmel and why?

Where it's easier to rent?

Where you can generate more income?

Quote from @Carlos Silva:

what’s the best way or strategy to ensure renters water the lawn to prevent foundation issues?

What you mean foundation issues?

Regarding watering the lawn, I state in the lease agreement they need to take care of the lawn. If they do not water the lawn I just ignore it and 30 days before they leave I put lots of grass seeds and water the lawn on tenant expense. By the time they leave, all the grass has grown back and ready for a new tenant.
I live in California and water is expensive here so I prefer tenants pay me rent then water the lawn if they can't afford it.

Hi @John Peter,

Florida might not be the best place to invest but there are other locations that can be better.
With CD most likely interest rate of 4.75%+ will only last for a few more months/years then it might go down.
If you buy a property with leverage (i.e. If you get a property that is worth more than $460K and get a mortgage) in an area that prices go up in the long run 6%+/year in 30 years you can even make 9% per year or more.
When you are lending money and you have a tenant that pays the mortgage and other expenses you can reach much higher return than a CD but of course more risk and work than a CD.

I can share with the calculator if you would like.