All Forum Posts by: Steve Lehman

How long was this property actively on market before you put your PA in? 

@William Stephenson

Looking through Morris invest threads for what? Why exactly would I be looking for? 

@David Tearney

You gave a pretty vague statement. Can you explain this "didn't go well" statement? Who was this person you are speaking of? What was the situation that occurred? What didn't go well, the introductory phone call, email communication, a project, etc? Can this person speak for themselves on this forum? I guess what I would like is some more detail. 

@Neal Stanfield

Sorry for the delay in response but I do not get on here much. At the time that I made this comment I saw a video that they had put out. The property was located in an area of Indianapolis that is not a good area and the area is not being revitalized. Since then I have seen them post properties, that are not new builds, but houses that they have rehabbed. The majority of these properties are in not so great areas either. 

From my research of this company they are nothing more than a low end Turnkey company promising big returns that are just not true. They are doing the same thing that Oceanpoint did when they started out. They put out a lot of videos on how you can get rich through buying turnkey properties and then convince people to buy their properties, in bad areas, by giving them high returns. This model just does not work. At least for the investor buying the TK properties. 

If you choose to use them I suggest that you get a 3rd party to look at the property and the numbers. Just be careful. 

@Sachin Bhat

You bring up some valid points on what to look out for. The 3rd party option is not always so easy to find though. You need to find someone who is not out to either try to get you as a client or has their own properties to pitch to you.  

@Mark De sagun

To your first set of ?s 

How often are you seeing turnovers in Eagledale? From the PM's that I have spoken with throughout the years your turnover is every year to year and 1/2. 

And how long are you seeing properties vacant for while waiting for a tenant? This I cannot answer because I have never done the data on this for this area. 

What percentage of the rent would you save to account for vacancy in Eagledale? I would put in normal 8%. 

As for your predictions on the property. 6.5% maybe about right if everything goes correctly. Yes, it's a base hit but there are better areas then this to get a base hit. You do not want to be in areas that you have so much competition. Like you said your rents will never go up, If you invested in a area that is a good mix of owner occupant and rental you will have better chances of not only raising you rent but resale value. 

26th/MLK I decided to take a drive over there today to see if there has been any changes to the area. It is still a rough area but there are changes going on within that community. I stopped by one the restaurant over there and talked to some of the people in there and they said that the area is improving and the neighborhood gets together every month or so to clean up the trash on the streets and help some of the less fortunate homeowners with their properties. 

There is still a lot board ups but not nearly as many as back in 2011. This is a good sign. There is also a non-profit that is trying to rehab some properties in the area. The greater 2020 is a good plan but it will still be a while before you see a significant difference. IMO estimated time frame about 5 more years. 

This area is really not for OOS investors unless they have experience in dealing with rougher areas. 

Christian Park/Twin aire The new courthouse will probably not bring in Judges and lawyers looking to live in Christian Park. What you will get is the other groups of people who run the court building and the jail. this will also bring in other business as well such as restaurants, bail bond companies, dry cleaners, etc. These people, I believe, will probably live more on the south of prospect and west of Keystone. A lot of this area is already being redeveloped. I also think you will see more homeowners than tenants. If they do go over to Christian Park on the south end prices for homes will not increase that dramatically but it would be good to see that side get more owner occupants then it has now. This is of course based on speculation and nothing more. I could be completely wrong. 

@Jaron Walling I see where you are going with it. Yes, it could make for a good rental and you will probably have a better shot at getting a long term tenant to. I do agree with you that Speedway is booming and it is great to see. 

@Mark De sagun 

Eagledale is an area that gets regurgitated every 3 years. This means it gets turned over every 3 years. The other OOS investors who were suckered into buying in this area are selling back there "GREAT TK properties" because they never worked. There is to much tenant turn over in this area and why shouldn't there be, tenants have a boat load of rentals to pick from. This area is filled up with more rental properties than any other area in Indy. The majority of the properties are all ranch style 3/1 with a mix of 3/2 because some TK company converted a small closet into a 1/2 bath. If you hear someone say they have a 4 bedroom that means they converted the garage. Rents in the area are at best $775 to $850. Maybe on occasions you'll get a $900 but very seldom. Anyone who tells you that is a good and decent area is trying to sell you their turnkey junk. This area has not changed throughout the years and will not. It will remain a giant cesspool of rental properties. 

Speedway is a great area if you can find a property that works. Most of the properties are homeowner and the ones that aren't are being rehabbed to flip to homeowners. If you find a property in this area you are going to pay a premium price for it. Make sure your numbers work before pulling the trigger here. Your margins will be small. Finding property here will be like finding a needle in a haystack. 

Christian Park is a great mix of owner occupant and rentals. If you look south of the park (south of English and east of Sherman) you will find this area to be more rental than owner occupant. There are a lot 3/1's and 2/1's, rents range 2/1 $625 to $675 and 3/1 $700 to $800. If you are looking north of the park (north of English and West of Emerson east of Sherman) You will find more owner occupants. Rent range will go up a little but not much, maybe $50 or so. This area is a good place to find your long term cash flow. tenants stay much longer in this area. There is also a possibility and I mean a small possibility that this area could increase in value with the building of the new court house. 

@Jaron Walling Could you explain to me why the property on 13th st is a good deal? The ARV in this area for a 2/2 1700 sq ft is only $132K, from the pics I saw on the MLS shows that the property does need updating. I am curious to you thoughts on this, maybe I am missing something.

@Josh C. You want to add anything to what I said. You know these areas to. 

They are building brand new properties in the hood. Buyer beware!! This is a warning. 

@Graziano Casale

I concur that you should reach out to @Clay Manship. Mainstay Property Group has been doing business here in Indy for a lot of years and they have helped out 100’s, if not 1000’s of investors from around the country and the world. 

Disclaimer: I am an investor and I have worked the Manship’s on many deals and I have watched them start and grow there business through out the years. They have a reputable reputation here in Indy. 

@Kevin Harris

You need to contact an Indiana Real Estate attorney. If you need a referral I can provide multiple ones. Feel free to DM me.