$38,000 deal using BRRRR in the Indianapolis real estate market, do this as an out of state investor

by | Indiana real estate, Indy Anna, Real Estate Investing

Watch us do a $38,000 real estate flip or BRRRR deal in Indianapolis for an out of state investor, get a behind the scenes look at every step.

Here’s another Deal Dissection Series: Brenda Episode 2, this is a $38,000 deal and we could flip it or do a BRRRR process and you’ll see everything as we go through every step.  This series gives allows you follow along and see every step of a deal from start to finish, these are real life Indy real estate deals that we are doing for out of state investors.

First of all, THANK YOU again for making this channel the number one channel for Indiana real estate on YouTube according google analytics and SocialBlade info for BigReia.com.  We’re also building the world’s largest organization of Special Needs Business Owners and Real Estate Investors.

We are on a mission:

My mission is to make lifelong friends helping folks around the world create generational wealth with a passive income of $30,000 a month with Indiana real estate (without leaving your house) while we’re also building the world’s largest organization of Special Needs Business Owners and Real Estate Investors.

Make sure go digest the ground breaking material at BigReia.com –

We are creating the world’s clearest instructions to empower any human being on the planet can start from zero and create a passive income of at least $30,000 a month.

Our mission is to make lifelong friends helping folks around the world create generational wealth with Indiana real estate and business building.

Now for today’s class on finding essential business rented commercial…

How to invest in Indianapolis real estate remotely from out of state?
Here’s a real life $40,000 BRRRR deal here in the Indy market, here’s exactly how we help investor do deals like this step-by-step.

Deal Dissection Series: Brenda Episode II

The Deal Dissection Series is all about talking an actual, real life Indianapolis real estate deal that we are helping and doing for one of our out of state real estate investors.  It helps you see EVERY thing from A-Z, step by step from start to finish – you get a full behind the scenes look, warts and all and REAL deals happen.

Deal Dissection Series – Brenda: Episode II

– Remember these DD Series videos are about walking you through REAL LIFE deals so you can get a complete behind the scenes look at how deals work in the world

– Each of these deals we feature will teach you specific lessons about how to build your $30,000 a month passive income machine with Indy real estate, we will do follow up videos on each deal, so you see EVERYTHING, all the costs, expenses, timelines and even mistakes and delays, you’ll see every piece of these deals, warts and all

– Every deal featured is a real life AND real time deal, so this is what is happening this week in today’s market and every one of these is being done with an Investor/Hero of ours, to apply to become an investor go to BigReia.com and click on the Indy Turnkey, if you have any questions, you can text me at 317-969-5619, please text because yes that is my actual direct line lol

Indy Anna Explains

– Today’s deal is the second video for Brenda, a SFR Buy and Hold with about $60k in equity

– We’ll go over the updates on the work and how close we are to being rented and some of the issues we ran into this week and how we dealt with them

– You’ll also see some updates pictures and a few notes about the basement issues, so you know how to deal with those if/when they come up for you

So, Indy Anna gets a lot of questions like:

I get a lot of questions like:

How can I do Buy and Hold rental real estate investing in Indianapolis, even if I live outside of the area?  How to begin with investing in Indy real estate  – how does it work in Indy?

What’s an buy and hold  in Indy look like? How do you rehab a  rental  house in Indianapolis?  Can you give me an example of an Indy deal?

YES, I get it, this is exactly the point of the Deal Dissection Series, this is a quick update so you can follow along and see exactly how to put deals this together.

If you’re paying cash for a rental property a good projection for return is 4-5% a year, 8% after year two. Good news here is that in Indy we can still aim higher with our purchase prices, our team’s timely rehabs, property tax cap rates, and landlord friendly laws- yes lol not being legally bound to pay any utilities adds up too!

We have a TON of other classes on all of these exact topics, be sure to check them all after this class.

Remember the goal of the Forever Fund:

– You should know the exact formula you need for $25,000 a month for example

– Then we work backwards and acquire enough properties to provide that passive income

– We can usually count on 8% as long as target 1% properties (we have made a TON of classes on this so check them out for more at BigReia.com), in this case you’ll see that too so this makes a perfect addition to our Hero’s portfolio

Remember with Indy Buy and Holds a few things in mind;

Purchase price

Rehab costs

Renter policies

Okay, so let me get started with the purchase price here; we want to get into a property for no more than 70% all in- that’s all the money in.

In other words, the first ‘chunk’ of the total 70% we are budgeting to spend will be that of acquisition.

In this case we are going to have some HML fees as well, so we NEED to keep those in mind.

– Origination fee
– Appraisal
– Three points
– Administration fee
– 13% interest on borrowed funds

All in all we are looking at closing costs of $10K down and $1300/mo in HML debt service
– including insurance and we’ve made another class on insurance for rehab worthy properties as well so be sure to check that out after this one for more info.

So here are the numbers on Brenda:

$100K purchase price
$40K rehab
$215K ARV
Rent: $1,600/month

So if this will be a 1% property, what’s the big deal?

– Remember this is a good area, and in B and above areas you usually don’t find 1% properties

– Since the cost will be around $150k – $160k and the rent is $1,600/month (1% of 160k) instead of flipping it for a quick 20-30k we are instead going to hold on to it and keep that 50-60k in equity and use BRRRR and pull out 20k or so and do the next

– I’ll be making future videos on the rental rates and Profit and Loss statements on Brenda

We are no more than 45 days into a property before the rehab work is done.

The reason we press for work to be done as quickly as possible is to get out of these HML rates as soon as possible, this is what our buy and hold investors need FAST. You can follow along on one of our duplex deals and flips in other class and as other updates come along here as well.

In most cases, a 3/1 is more ideal than a 2/1 or even 1/1 for an Indy rental. We are looking at $1500 a month here in rental rates, but keep in mind this is a Class B area and it’s a long-term investment. The better the Class area, the less of a monthly rental yield you’ll see. This is up to the particular investor, but it can mean fewer tenant issues in a lot of cases.

A few quick reminders about this deal:

– Remember we name each deal with a name that starts with a “B” if it is a Buy/Hold and with an “F” if it is a Flip, this is Brenda, so a Buy/Hold

– We have other duplex Bs and Fs as well, each deal illustrates something specific that you can learn from

– This is an update and remember the numbers we are in about 150k total with HML costs, etc. and the ARV is 215k with rent for $1,600/mo.  Our Hero will be refinancing soon and getting all their cash out and an extra 15-20k as well and the on to the next one as this is rented out.

So, like I said we are in the rehab process here on this one and we’ll have other updates coming along so you want to stay tuned for those coming updates. 

We’ve done the ‘not sexy’ rehab work first, the truly behind the scenes and in this case wall work.

We’ve done the basement demo, got drywall up in the basement and replaced and updated all of the electrical.

What we did not anticipate, but adjusted quickly for, was the storm that came through and knocked out our sump pump. Within hours of walking into the basement being under water, we had a crew there to not only pump the water out but salvage our 400 sheets of drywall that were custom ordered in bulk to finish this basement up.

We not only dried this basement out, kept all of our pristine drywall intact, and kept our deadline at 100%- we also installed a battery backup sump pump to eliminate all future issues.

After fixing the basement what is next?

Upcoming, we are going to have the interior painted, the kitchen demo, and flooring laid. Our team here in Indy is always trying to stay ahead of curve balls, and in this case, we knew paint was going to be an issue- well, before we got around it before hand lol.

COVID has shut down one of the paint manufacturing facilities and the high-end finish brand of paint we typically use is not currently in production. We got with our paint specialist her in Indy, and they were able to not only find us another label under this same manufacturer to use, but custom match the shade we originally planned on using- so paint being out of stock isn’t an issue for us.

What else can we be proactive about?

This got us thinking however, and we quickly adjusted on another aspect of the flip.  We pre ordered and have already had delivered, enough flooring for this particular client to use in a few more upcoming deals.

It is our Hero’s favorite. 

It’s their favorite, and we wanted to make sure we had enough for each upcoming deal.  To be clear, there are PLENTY of materials out there to buy, same day.

But, when a Hero a go to or favorite, we make sure we have the exact time they want OR we find an almost identical difference. LOL, in some cases, they don’t even know it’s a ‘replacement’ until we tell them the legwork we did just to make sure we stayed within the original SOW and deadline.

So in summary what have we covered in this Indy real estate Deal Dissection:

– The before of this property and updates

– The work being done to rehab it and pics

– All the numbers in the deal so that you can track along

So right now, here’s what we are working for next time, stay tuned and you’ll see:

– We have to match the paint and make it identical, so that will be done this week so make sure you come back and see how well we matched it up

– The basement needs to be finished, but to do that and make the most of the space we have to create a little bonus area for the washer and dryer so that it is out of the way, and we can get all the square footage possible out of the area, so next time you’ll be able to see how well that was done

– Also, we are finishing the kitchen but need to be careful and make sure we don’t harm the custom cabinets or that will cost us big time, so next time you’ll see how that goes too…

Remember the pictures below are all BEFORE pictures lol

Upcoming we’ve got our always free printable download and the adventures of our BigREIA friends.

If you want to do deals like this here in Indy, we can set up a time to chat and see if we’re a good fit to work together, but for now- go to BigREIA.com, go there and you’ll…

Make the Universe SMILE.  =  )

Want more (brilliantly) EPIC posts of real estate investing and bidness badasssery...?

There is a great post and class on the 38 Ways to Buy Apartment Buildings Zero Down with Pet Policies, and here are some other helpful and EPIC posts... for starters as a real estate investor if you ever want to build a business that makes you 30 grand a month then you MUST do this...

Wanna Create Generational Passive Income Buying Real Estate and Small Businesses?

Here's a class on exactly how to make $30,000 in passive income as an out of state Indy landlord.  Exactly how many Indiana rental properties do you need to make 30 grand a month.  Anna can you help me invest in Indianapolis turnkey real estate investment properties?

There's also a great class Azam did on how anybody can retire in the next 1-2 years with $30,000 a month in passive income by buying and selling businesses zero down.  What about Micro Flipping?  We have a great class on how to start micro-flipping real estate zero down from your house and make $500/day, speed wholesaling 101.

There’s also another great class on how to buy apartment buildings zero down that you can check out as well.  This relates directly to growing income on rental properties.  Speaking of which make sure to check out our epic page on 14 ways to avoid tenants from hell.  Also we have a great post on how to make build a "six figure a month" real estate wholesaling business.

Also here is a post on how I did this and I flipped a house off Zillow for 30.  Also you can check out the post on five steps to flip a house right off Zillow for 40 grand.  You can also check out our other epic post on 57 ways to make money with vacant land.

Here’s another post on how a Hero flipped a house off Zillow and made 40k in a few weeks while he was learning to read.  Also you want to check our post on the EPIC $25 million letter and the copy writing lessons for real estate investors, you'll love it.  Also you can see how ONE letter is making me $9,000 a month.  Also you can check out the post on 101 FREE places to advertise your houses.

Also check out the "SA" class and your REAL chances of create social mobility and income ascension with your real estate business.  Brilliant stuff.  Also there is a great post on the ONLY way you'll ever make 30 grand a month as a real estate investor and/or business builder.  Another brilliant class with a free downloadable Investor Guide is about 19 Ways to Make $10,000 a Month by Helping Tired Landlords.

Plus make sure you check out Azam's post on how to hire a realtor that makes you $10,000 a month... while you sit back with your shoes kicked up on your desk and fingers folded behind your head.  Also there is a great post on how to make five grand a week from putting out signs.

Also we have some great posts on 30 ways to buy real estate with no money down.  That is a two part series so make sure to watch the second part on the 30 ways to buy real estate zero down and with no loans or credit.  I also get questions about our "Epic Flipping" and how to turn $1 into over $25,000 by flipping ordinary items for exponentially high ROI.

And don’t forget our EPIC page on 100 FREE ways to find motivated sellers, we are making the number one page in the world on FREE ways of finding motivated sellers.  Also check out how I find motivated sellers from code violation properties, and also how I make over $1,500 a week giving investors access to that list.  Speaking of lists, for a list of the "Good People" and My Indy Anna Homeys you can go to our People Page at https://www.BigReia.com/people.

You can also get a LONG list of every contract, piece of paperwork and legal document that you'll EVER need for your real estate business all FREE to download: https://www.BigReia.com/Contracts.

Also perhaps the most important class Azam has done is on the "Frequency of Thought" and how to use the laws of quantum physics to rewire your brain, attract brilliance like a lightning rod and be the best version of yourself.  Check out this epic 3-hour class on Quantum Real Estate.

Also make sure to check out our “People Page” for a totally FREE list of every possible contact you’ll ever need to build a real estate business in Indiana or the Midwest:

https://www.BigReia.com/People

Stay here at BigReia.com and you’ll become allergic to being an LC and addicted to improving the world and creating Income Ascension and Social Mobility for you and yours… 

Thanks so much!  = )

Make the Universe Smile.

~ Indy Anna
Love (at) BigReia.com
(YES that's my actual Direct Line and I really do answer lol, so please text me first Thx!)

Free Comic Book Reveals:

100 FREE ways to find motivated sellers.