Here’s a real life Indiana real estate deal with an ROI of 19%?

Here’s another real life Indiana real estate deal example, this is part of Deal Dissection series and we’ve made hundreds of videos and classes with real world breakdowns.  Today we’ll talk about a boring ranch and how it is producing a whopping 19%, this is what Indiana Safehouses can do for your rental portfolio and passive income forever.

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. 

How can an Indiana Safehouse make you over 19%?

Here are the numbers on this Safehouse:

Purchase Price: $153,000
Seller Paid $5k closing
$3500 prorate taxes
$149k to close
$1500 per month

Needs $2,500 in cosmetic repairs

$175,000 LO sale
$240 month down payment assistance

Paying all cash with $1,550 monthly income

Minus Expenses:

Taxes (on this property) – $161 month
Insurance – $50 month
Property Management – $150 month
Total costs – $361

Income $1,139

(1139 x 12 = 13,668) divided by $149k purchase price =

9.17% cash on cash return

10% annual appreciation
1% depreciation

20.17% ROI – NOT LEVERAGED

Let’s say you leverage it:

If you have an 80% mortgage on a $149k property ($119,200) at 7.5% interest (full doc loan), amortized over 30 years, your P&I (principal and interest) payment will be:

$828 P&I

$29,800 down
$119,200 new loan

$1,550 month income

Minus:

Taxes (on this property) – $161 month
Property Management – $150 month
Insurance – $50 month
Total costs – $361
P&I $828

$1,189 total costs

Positive cash flow: $361

Apply the $361 to principal each month and you will pay off in less than 15 years.

Add $240 a month down payment assistance and you pay off in about 10 years.

Calculating the ROI on a LEVERAGED investment.

ROI = Net Profit / Total Investment x 100

A $149,000 house, here are the numbers…

TOTAL CASH INVESTMENT CALCULATED AS FOLLOWS:
$29,800 (20% down payment) + $6,000 (closing costs – approx.) = $35,800 total cash investment

TOTAL NET PROFIT CALCULATED AS FOLLOWS:
+ $900 (rising annual rent)
+ $1.500 (depreciation – approx.)
$15,500 (10% annual appreciation)
+ $1,200 (annual buy down on the note)
+ $4332 (positive cashflow after debt service)

= $23,432

NOW LET’S SUBTRACT SOME POSSIBLE COSTS:
$540 (3% annual vacancy rate($1,500 rent x 3% x 12) + $900 (5% potential annual repairs needed – ($1,500 x 5% x 12)

NET ANNUAL PROFIT:
$23,432 Net Annual Profit Before Possible Costs MINUS
($540 vacancy + $900 repairs)

= $21,992 Net Annual Profit

$21,992 Net Annual Profit / $35,800 Total Investment x 100 = 61.43%

RETURN ON INVESTMENT:

61.43%

61% ROI

We accounted for EVERY thing in those figures like debt service, appreciation, depreciation, buy down on the note, repairs, vacancies, taxes, insurance and property management costs.

And if you apply the money that is coming in from the tenant to the mortgage…

It will pay off the loan in 10 years.

What if you don’t figure in the appreciaton AT ALL?

NET ANNUAL PROFIT:
$23,432-15,500 (appreciation) = $7,932 Net Annual Profit
Before Possible Costs MINUS ($540 vacancy + $900 repairs) = $6,492 Net Annual Profit

$6,492 Net Annual Profit / $35,800 Total Investment x 100 = 18.13%

RETURN ON INVESTMENT = 18.13%

That’s if you don’t add in ANY appreciation on the property.

Properties in (the right parts of) Indianapolis have appreciated 10% per year on average over the past 30 years.

WITHOUT FAIL

Taxes?
Active Income taxed the MOST
Portfolio Income taxed a lot too
Passive Income can be done tax FREE

Shaq on Passive Income:

Shaq was told by a billionaire that the difference between them was:

“We both have a pile of money, but when I die and my kids die and their kids and their kids’
kids die…

That pile of money will still be there.”

That is what a FOREVER FUND is, money and income forever.

You live off the fruit as the tree continues to grow and plant other money trees of its own.

Terman Study

This is the longest running study in the history of psychology.

We talk a LOT about the The Terman Study has and what we can learn from it. 

So what did they find out was the biggest factor in your children‘s success?

Where you start them out.
A seed will not outgrow its pot.

That being said remember the team and who should be on your team:
Realtors, lenders, PM, HML, appraisers, contractors and investors
Title companies, insurance, inspectors, accountants, eviction attorneys…

Make sure they got you connected and you can talk to them ahead of time too.

If you want a list of OUR contacts and every possible person that you will ever need to build your real estate business you can check out our People Page at BigReia.com/People.

The MOST important thing to look for are OUTCOMES.

Indy CAN be a great market for turnkey investing but you need to pick the right team.  Joe and Azam have an obsession of helping folks from around the world create 10-30k/month and far beyond so you can use that as a ruler to measure others against.

Here’s what to do next:

1.) Download a FREE copy of our book “The Book on Indiana Real Estate Investing from Out of State” and see how we help folks turn 200k into 100k/year passive income forever.

2.) Devour are FREE accompanying classes, videos and testimonials and make sure you are qualified and fully ready to apply for us to build you passive income and generational forever wealth.

3.) When you are SURE that the GRS program is for you, you can apply and after your interview (Joe or Azam will speak directly with you in your final interview) if your application is accepted we will begin immediately and start collecting Safehouse FOR you, you don’t have to do anything – you don’t even have to leave your house – everything is DONE FOR YOU.

So that’s how you create passive income with Indianapolis real estate from out of state.

As always remember that you can use our  People Page here for a full list of every contact you’ll ever need to build your real estate business.  Also we have a list of all the paperwork and contracts that we use and we add to this list regularly so you can download anything for free and feel free to send me feedback or requests.

Want us to build your real estate portfolio for you?

Apply for our Get Rich Slow (GRS) Program and have me and our team build passive income for you.

Apply here now.

In the meantime you can go through the previous Elevators, classes and other FREE training material and use it to grow your impact before you check out.  Use our stuff to both create passive income AND buy small businesses zero down, follow the steps, be kind, help others 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 - this is a FREE list of EVERY possible contact that you'll ever need to build a real estate business in the Indianapolis or the Midwest.

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.

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.

When I first go started I thought wouldn't it be great if somebody put together ONE list of every possible contact that I would ever need to build a passive income with Indiana real estate - or any Midwest real estate?  Well that's exaclty what I did with our “People Page” here it is:

A totally FREE list of every possible real estate professional contact you’ll ever need to do unlimited deals, start and scale your real estate business and create generational passive income with real estate anywhere Indiana or the Midwest.

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 Annabelle
Love (at) BigReia.com
408-430-7417 (YES that's my actual Direct Line and I really do answer lol, so please text me first Thx!)