All Forum Posts by: Steve Cook

@Ciprian L. Totally agree with you. This immediately stood out to me when I compared it to other properties, with property taxes of 1.5-2.5%. This is the actual property tax paid last year based off the assessed value, which was pre-rehab. From what I've read, property taxes in Indianapolis are not reassessed on transfer of ownership. Do you have any insight here?

@Steve Babiak @Robert Lasko Wholeheartedly agree, before I move forward, the property will be subject to an independent inspection looking at all the big ticket items. This was just on on-paper exercise, but I plan to leave all the cash flow in a dedicated reserve account until I hit a certain threshold, I was planning on $5K. At that point, any excess would be used to fund the next property.

Hi guys,

I'm running the numbers on my first investment and wanted to get your thoughts. It looks like a great deal to me from a numbers perspective. I'm a buy-and-hold investor and am not concerned with appreciation. This is a turnkey property and I'll be conducting reference calls with some of his other clients and talking with the property manager. For other turnkey and out-of-state investors, what other steps have you taken to mitigate your risk from a distance?

Details

Location: Indianapolis

3 Bedroom / 1 Bathroom

Completely rehabbed in 2013, list of renovations include:

New decking, new roof, all new joists, insulation, drywall, all new plumbing, all new electrical, new exterior siding, new flooring in all rooms, new kitchen cabinets, new kitchen counter tops and sink, new shower/tub & surround, new vanity, new toilet, all new light fixtures, new tile flooring, new carpets, new doors, new paint in all rooms.

Financial Analysis

The property is currently leased at $775 for 1-year. I've also assumed $2,500 for closing costs. I'm not sure if closing costs are typically included in cash-on-cash, so I've included that metric with and without closing costs.

@Johnny Aloha Getting close! I think I've nailed down interest in Indy for my first purchase, still also looking at Memphis. Hopefully can close on my first place in the next two months.

Excited to meet all of you and totally agree with @Kevin Auyong . Would love to connect with others who are looking at out-of-state buy & hold opportunities.

@Kevin Auyong I wish I was investing in the Bay Area! The returns simply aren't there for the price points I'm looking at. I'm currently looking at Indianapolis and Memphis.

@Aaron Westerburg

I'm in pretty much the same boat, with about $55K. My current plan is to by one property around $60K and put 20% down ($12K) that will cash flow over $200 per month. That gives me a cash-on-cash return of 20%. If I can do that successfully, I'm simply going to repeat that another three times. If I'm successful with all four, I'll let that cash flow build up until I can put my next $12K down. Rinse and repeat. Good luck!

Thanks @Dean Letfus What about at a lower price point, say $60K - $65K? Is there still lot's of inventory that will cash flow $250?

Hi @Erik K. ! Welcome to BP.

I'm also in the Bay Area and focused on investments out-of-state, primarily Indianapolis and Memphis. Also, there is an Oakland meet-up next Thursday if you're interested.

http://www.biggerpockets.com/forums/88-real-estate-deal-analysis-and-advice/topics/109953-east-bay-meetup---thurs-jan-16-2014-in-oakland

What: East Bay BP Meetup - 2014!

When: Thursday, January 16th, 2014 - 6:30PM to 9ish+

Where: Rosamunde Sausage Grill (& Bar)
Swans Market Place, 911 Washington St, Oakland, CA 94607

Get There: Take BART to 12th St/Civic Center Oakland Station& walk down Broadway to decreasing-numbered streets. Make a right on 9th St and walk to the first corner, at 911 Washington St. It is about a 5min walk, a block from the last EB meetup.

Parking at 459 8th St, or other garages nearby. Link in other post

Thanks for setting up @J Martin

@Adam Menconi

Currently targeting Indianapolis and Memphis. Target investment is a 3/2, under $80K in a good neighborhood that will cash flow upwards of $250 / month. Definitely seems possible in both of these markets.