All Forum Posts by: Jeff Schechter

Taxes in IN cap at 2% for non-residents, and the valuations are usually lower than the true value.  It also takes the state a long time to catch up on those valuations.  In regards to taxation, IN is one of the BEST states for non-residents to invest.   If that blows out your deal, you'd be best look at a different property, not necessarily a different state.

Got it...thank you @Micah Markowitz

@Justin Sheley No problem.  :)

@James Hong  I moved from Austin, TX to Indianapolis last year.  I don't think you'll get anywhere near the cash flow anywhere in TX than you will in Indy.  I've heard of people getting good results in OH, and some in Detroit, but we are crushing it in Indy.  Hard to find these kinds of price-to-rent ratios anywhere.  There are some hot areas here, and there can be some great flips, but the real gold is in the cash flow of the buy/holds here in Indy.

@Alexander Ritola I can help you understand what's going on in Indy, and why it's such a popular place for investors.

@Andrew Syrios TK's have to justify their existence every day. Given all of our connectivity online, BP, etc, investors are more savvy than ever before. As such, a TK company HAS to give great deals in order to stay alive. They have to be able to buy, rehab, place tenants and place tenants BETTER than an individual investor can do their own BRRRR. To say that you can't get good deals from them is very subjective. Another consideration is TIME. As an example, if an investor did live out of state, and wanted to do a BRRRR halfway across the country, would he/she be able to do it effectively without the resources and processes of the TK company?

It is common for us to get 2% in Indianapolis.  Great price-to-rent ratio, and inexpensive taxes in Indiana make it a great place to invest.  

@Felix Rodriguez  Let me know if you come to town...happy to talk shop!  :)

The obvious benefit to TK is that you're not messing with any of that stuff yourself.  That said, we'll give an extra discount on the process for leveraging your cash during a rehab.  The end result for the investor is not much different:

A.  Buy TK and get a great deal.  Jump into a property that is cash-flowing immediately.

B.  Buy a pre-rehab that become a TK.  Pay less money, but wait a few months until it is cash-flowing.  

@BB Liu - We are also in Indy.  In fact, we get many of our properties from the same supplier as Clayton.  PM me if you want more insights.