Makes complete sense to purchase a property that breaks even or loses money.

I’ve been investing in RE for 10 years and hitting 19k/month profit not counting things breaking or vacancies.

It's a good market with year-round demand that peaks in both winter (ski season) and summer (beach / lake / hiking / etc) season. 

I currently broker LIHTC multi-family for a large firm coast to coast and am also interested in MF in the Arizona submarkets as well, and will eventually invest on that scale - I just figure breaking into the state through SFH flips may be a more risk adverse way to understand the pros and cons to phoenix submarkets.

@Daniel Baker What do you mean by breaking even??

Looking to have access to more capital to help do more deals this year and want to make sure i'm not breaking any laws and get into trouble.  

We'd love to escape the cold Dutch winters and enjoy a warmer climate.When we're not using the property, we plan to rent it out as an Airbnb to generate passive income.

Hard to produce cash flow or break even with that much debt, at that rate.House-hackers, however enjoy certain one time (non-scalable) advantages that should be taken advantage of in the early days: - They can assume pre-existing debt like VA and FHA Loans (rather than take it on Subject-To which is dramatically riskier).- They can rent by the room and self-manage to produce day 1 cash flow.- Many of these HCOL areas also have strict limitations on AirBnB or short-term rentals... that do not apply to owner-occupants - thus allowing for extreme cashflow potential for house-hackers.

Challenges and Opportunities Unique to IndianapolisSeasonality: Tenant interest tends to slow in winter, so try to avoid vacancies during those months.Diverse Neighborhoods: Indianapolis has varied sub-markets.

Best way is to just try to break it down piece by piece.Water- how is it being delivered to the homes.