For example, what would the cash flow be like after you renovate and lease out at the new rates?

And now with rates being high, plus many areas overbuilt with new apartment buildings, I’d be careful with unknown areas, and also what you read in the media about “hot” areas, up and comers, etc.I was in a similar situation to yours a couple years ago.

Hi Evan,If you do land on Indy and want any help crunching numbers and current rates.

The spread between what they're paying and what the market rate indicates is not that much.

The success rate is below 30% so it is always do some arrangements with the tenant or move on depending on the case.

Here are the pros as i see it: easy (no purchase necessary, you know the property), likely prop 13 property tax discount, possibly below current rate loan.  

Offer to pay them off in 5-10 years at a higher interest rate.

All 3 parts are critical to being successful here and we’ve been doing it with todays prices, todays competition and todays interest rates.  

"Buy the property, but date the rate!".

I'm a Realtor with a couple properties listed in Boise, ID and a neighboring town for my investor/client that are currently rented as co-living or rent-by-the-room and getting killer income. (7.3% - 9.5% Cap rate) So far, every inquiry has been baffled by the concept of co-living or rent-by-the-room and immediately ask if they're being run as a halfway-house (which they are not).