I understand it can be harder to gain experience with larger multifamily properties compared to single-family homes or duplexes, where someone might complete 5 deals in 1-2 years.

Multifamily properties do require more management overall and typically appeal to a smaller, investor-focused buyer pool.At my stage, I prefer small MFH over anything else because of the stronger cash flow, scalability, and the more forgiving capex compared to larger MFH, but the best option depends on your goals and strategy. 

Property Valuation:Investors look at a variety of factors to determine a property’s value, including comparable sales (comps), rental income potential, and location.

  $6.25k feels manageable, so I compared the rent vs purchase numbers.  

I would compare my return with any market, anywhere but 1) this is a different San Diego market than the one I have been so successful in 2) while I am a big fan of leverage, I am not a fan of over leverage.

Leverage magnifies return. 3) The effort involved in adding an ADU is comparable or larger than a rehab associated with a BRRRR.

Here are a few things that I like about the neighborhoods in Indy compared to other states: high rent-to-home-value ratio, consistent and gradual city development, relatively low property tax and insurance cost, affordable renovation service cost.

Will post back how long it takes and the “compared to what” responses as it happens. 

You can contribute more compared to a SEP IRA, avoid the UDFI tax on leveraged real estate, and even borrow up to $50,000 for other needs.

The market still has relatively low entry points compared to other major cities, making it possible to find multifamily properties like duplexes and triplexes in the price range you’re targeting.