If you read yesterday’s post, you got a refresher on what makes a market worth shopping in (when it comes to real estate). One of Hipster’s favorite markets is Indianapolis. This racing capitol has the value, quality and convenience that Hipster wants when we buy real estate or hook others up with great deals. So – what makes Indianapolis such a shopper-friendly market? Trulia.com notes that Indianapolis has seen a whopping 11% increase in rental rates in the last 12 months and has earned the title of the #1 Most Stable Real Estate Market in the Country! Indianapolis has the properties, hospitals, universities and the stable tenant pool investors want.
Today’s single family home in Indianapolis is a winner. Why? It’s fully renovated and you close with vetted tenants in place. Not only that – it comes with a one year scope of work warranty. Talk about a sound investment! Way to go, Indiana!
Location: Indianapolis,IN. Built In: 1966 (fully renovated)
Purchase price: $65,000 (not a foreclosure, normal sale)
Property info: 3 bedroom, 2 bathroom, 1,217 square feet
Monthly rent collected: $825
Property taxes: $83
Property management fees: $83
Monthly expenses (conservatively estimated)
Vacancy (7%): $58
Repairs (5%): $41
Total Monthly Expenses- $311
Net Income = Income – Expenses = $514
Cap Rate =
annual net income (non-inclusive of mortgage payment) / purchase price = 9.49%
Cash-on-cash return =
Depends on your leveraging.
If you are interested in this property or seeing others like it, contact Melissa at firstname.lastname@example.org.