Bean Creek Banger
The Property
3 bed / 1 bath near downtown Indianapolis, Fountain Square, Garfield Park and the major intersection with a low price point and high rent. I was targeting this neighborhood for a while and glad I was able to finally acquire one that met our numbers.
How We Found It
With such a hot market and ALL my offers being declined due to higher or better offers, I decided to take matters into my own hands and try to source my own deals. I ran a high equity list in neighborhoods I wanted to own rentals in and was very fortunate to have a handful of hot leads. After two months of speaking with the owner and negotiating, I was able to lock up this property. I was able to negotiate $15k off his asking price, which EXTREMELY helped my numbers.
How We Funded The Deal
I initially had my previous HML lined up to fund this deal but I had built up a solid relationship with an aspiring investor. They became frustrated after not finding anything for months and I had asked them if they wanted to fund this deal and in turn, I would include them in all my conversations and correspondence on this deal to help them learn. A win-win for sure!
What We Did Wrong
This was supposed to be a quick and cosmetic rehab with not much work needing to be done. Of course, in real estate, it never goes to plan. We had the electrical updated and it took the electrical company almost 3 weeks to get to the property to connect it to the updated meter. The updates were completed in a week but because of no electricity, it pushed the project back further than what I anticipated. If I could do this over, I would have asked to have the electrical company come out when the project began, not after all the work was completed.
What We Did Right
The biggest win for me on this was not being afraid to find my own deals and contacting the seller. As mentioned, I was able to negotiate $15k off the sellers asking price by just listening to him and building rapport. I had read Never Split The Difference before negotiating which I felt really helped me get the price down. Closing this deal has given me extreme confidence knowing that I have the ability to find my own deals and potentially wholesale.
The Outcome
My numbers say that this will be another perfect BRRRR but we’ll see when the appraisal comes in but I bought this property at such a steep discount and I am confident I will be ok--even if I leave some money on the table. We were able to get this property leased in less than a week on the market, even without interior photos. We received over 100 contacts in just 3 days and found a qualified applicant quickly. I’m pretty stoked to get this one in my portfolio!
