Property Q&A in Indianapolis>Question Details

Renato MinÃ…, Home Buyer in Indianapolis, IN

what is the rental potential in a house like this one, in a rehabilitating area like this one, near downtown.?

Asked by Renato Miní, Indianapolis, IN Sat Feb 18, 2012

I'm thinking about starting in the business of buying and selling/renting real state and was wondering if this house could be a good start

--
This question is about this property: http://www.trulia.com/property/3063206568-2928-N-Delaware-St…

Help the community by answering this question:

Answers

3
I had a few rentals a few blocks north of this area. At the time I was getting 600/mo. Rent-ability will come down to marketing. Mine were closer to Butler so it was a little easier for me to tap into an area. It can be done but unless you live near by it may not be a good place to start. I advise folks to start close to home - it just makes things easier on you, the landlord. If you want to look for some solid places, let me know, happy to help.

Claire-Anne Aikman
Carpenter Realtors
345.6640
0 votes Thank Flag Link Sat Feb 18, 2012
Hi Renato...it is a matter of your return on investment and how much the rehab costs will be to get this home to a rental stage, as well as what your rental income will be. While you have to start someplace, it is best to target the area you want to focus your activity to minimize your travel costs, as well as being in an area that can generate adequate rental income for your business model. I am part of a real estate team that not only works with investors but myself and a fellow agent got started in real estate flipping homes several years ago and holding properties for rent and cash flow. We have a investor calculator that may be useful to help determine your return on investment whether you are trying to sell or holding for rental revenue.Between the two of us, we have ove 40 rental properties so we have a good understanding of what investors look for and want in their return on investment. This particular home would require a closer look at repair costs and what it could actually be purchased for and see if the rental rates support the return you are looking for. Most investors want at least a 12% return but usually higher. When starting out in the investment business, I would not recommend as your first project a home that is going to require a lot of rehab work just to get it to rental stage. Once you have experience doing a few, you can be a better judge of what project you would take on. Feel free to contact me if you need more details.
0 votes Thank Flag Link Sat Feb 18, 2012
It may be a great place for you to start. Give me a call or shoot me an email, I would like to see if we would be a good match to work together on your new venture.

Thanks,

Michael Weaver
"The Fastest Gun in the West"(or Mid-west)
The Vearus Group
317.455.LIST
Web Reference: http://HudHomes.mobi
0 votes Thank Flag Link Sat Feb 18, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer