Why Should I Invest in Indianapolis?

What price range should I be looking in?

In today's market, you should be able to find decent homes anywhere between $100,000-$200,000 depending on what type of home you are looking for. I would say the bread and butter price range is somewhere between $120,000-$175,000. This price range would attract about $1200-$1,600/month type rental. Those homes are usually located within a subdivision where the tenants tend to stay longer because of the schools/school programs they are involved in.

What rent rate should I be looking to get?

This all depends on what you purchase your investment for. A solid rent rate would be somehwere between $1,000-$1,300/month. These homes tend to be a little easier to lease. Not saying that anything below this or above this isn't a good rental price. This price range should put you in probably a home built after 1990, in a subdivision located within Township Schools.

Where should I invest at in Indianapolis?

This is a tough question to answer. I generally get this question just about every time I talk with an investor. It's hard telling someone where to invest as Indianapolis is very large. The things I look for when looking at properties would be the school ratings, average days on market on both the sale and rental side, crime rating, etc. If you base your search on some of those things, you will start to narrow down which areas you would prefer an which areas may not work best for you.

What is the 1% rule?

I'm sure if you have done your research, or spoke with other investors, you probably have heard of the 1% rule. The 1% rule basically says that you should look for a home that rents for 1% of the sales price. So if you purchased a home for $100,000, then you would want it to rent for at least $1,000/month. You are able to find these homes, but sometimes in a competitive market, this number might look be a little less than 1%. Again, this all depends on where you are looking. Sometimes you can find a house for $80,000 that rents for $925 which would put you over the 1% rule. It's a good rule to keep in mind, but don't let these numbers hold you back from purchasing an investment if it's a good opportunity.

How long does it take to close on a home in Indianapolis?

Generally, if you have a local rock star lender who knows what they are doing, you should be able to close on your investment in about 30 days. It shouldn't take any longer, but typically no more than 45 days.

How do property taxes work as an investor?

In Indiana, we tend to do things a little differently than the other states. We are one of the only states that does our taxes in arrears. So when you go to purchase a home in Indiana, usually you will get a tax credit at the closing from the seller. This is always a bonus for you. But when you go to sell your house, you are the one giving the credit. The credit is for the future tax bill that hasn't came yet, since we are always paying last years taxes this year. Sounds confusing, but always let me know if you have any other questions here. Also, because this home would be used for investment purposes as opposed to making it your primary residence, you will no longer be able to claim the homestead exemption. In Indiana, our taxes are based on your assessed value. If you were to purchase the home for yourself and live in the home, you are generally paying around 1% of the assessed value for your property taxes. When you purchase the home for investment purposes, you will have to pay about 2% of the assessed value for your taxes. A quick example would be your homes assessed value is 100,000. An individual home owner would pay $1,000/year for property taxes (1%). An investor would pay $2,000/year (2%). You want to keep these numbers in mind when you are considering purchaing a property. The last thing I would want to happen is you to buy a home and not know this, and then about a year after owning the house you get a tax bill in the mail showing your taxes have now doubled.

Do you have reliable contractors who can do the rehab work on the home if needed?

Yes I do. I have a contractor for everything. From carpet and paint to plumbing and roofing. I have built great relationships with contractors over the last 10 years. I can usually get quotes in a timely manor and can help ease the process for you. Most homes you find shouldn't need a full rehab, but may require more work than just paint and carpet. Don't worry, I've got you covered!

How do you get paid?

Great question. I get paid by the seller. If there is a home listed for sale through another brokerage and you are interested in purchasing it, I will get paid my commission once the sale has been finalized.

Do I need to be there for the closing?

No! What will end up happening is, your lender and title company will coordinate for a mobile notary to come to you to sign the docs on closing day. It may take an additional day to fully fund your loan, but its a pretty straight forward process. I will work with both your lender and title company to make sure we are all on the same page.

Can you find deals outside of the MLS?

Yes I can. Although it does require some patience, I can occasionally find deals that are not listed on the MLS. I've networked for the past 10 years growing solid relationships with other investors, realtors, etc. These types of deals come and go, but they do happen often.

Can you refer me over to a Property Management company after we close on a home?

Yes, I can do just that. I personally do not manage properties but do have a property management background. I've got a good connection with a local company that should be able to take care of you. They are selective on the types of properties they manage, so I would make sure that before you purchase the house it would fall within their range (if you are wanting to use the company I recommend). You are always free to do your own research to see what else is out there. My job is to make sure you are taken care of either way.

Why should I work with you?

I'm not your typical real estate agent. My goal is to not just find you a property. I take it several steps further. With a background in Property Management, I know what areas rent well, what rent rates should be, and what type of work would need to be done in order to get your house rented. If you are out of state, I always do a walk through of a home before submitting an offer with you. I will do a video on the spot and email that over to you as soon as I am done walking through it. I will let you know all the details at that time (rent price, rehab estimate, sales comps). I will attend the inspection for you and work every detail out with you until the end. My goal is to not have another transaction under my belt. In fact, I will probaby tell you the house doesn't work more than telling you that the house does work. I don't want to see you purchase something that just doesn't make sense. Of course I can't predict the future, but with my knowledge, I am able to help weed out properties that aren't a good fit for your investment.

I'm considering investing in Indianapolis and want to work with you, what's next?

Thank you for considering me as your Realtor. You will find that I am easy to get a hold of. You can always call, text or email me. Paul@soldbypaullinn.com, 317-629-0070 (cell). You can also simply fill out the form below and I will get back with you as soon as possible.