After receiving a number of unsuccessful leads, I realize I need to BE PATIENT and wait for the right investment. I'm too eager to retire tomorrow. That's just unrealistic. But, at the same time, once a good deal comes through, I need to jump on it quickly if it's the right fit.
Today, I got another lead!
This property is vacant and requires a rehab (although, not a heavy one). On paper, the numbers look good! This is the best looking property I've seen so far:
First impressions of LEAD #4: Highest monthly rent I've seen. Highest annual taxes. Large plot of land. Neighboring houses look like they are in good shape. Next door neighbor has nice square footage and 3 floors...could be high value. This property has a garage. Stone siding is a plus. I like the surrounding tree lined-streets and area. Neighborhood isn't as dense as others I've seen in Indianapolis. Overall, I like a lot!
You know what's next...time for as much due diligence as I can from half a country away...Google Street View, research on Zip Code, crime stats, Zillow for home value and comp values, and verify county tax numbers. Pretty much everything I find is POSITIVE!! Remember, to run your numbers on the BiggerPockets Rental Property Calculators. From the second I saw this property hit my inbox, I had a good gut feeling about this one! Here's additional data I found:
-2 Bed, 1 Bath, 1 Car Garage
-768 Square Feet (1,536 if you include the unfinished basement)
-Lot Size: 7,840 square feet
-Estimated Rent: $750 per month
-Median Zip Code Home Value: $118,100
-Crime: Light Green/Dark Green (safe) in immediate neighborhood, but 0.5 miles from Red (less safe) commercial zone.
-Closest School: A K-8 one mile away rated 8/10 according to Zillow
Things are looking real good on this property. Here's what I like:
1. It's a vacant property needing a fresh rehab. New infrastructure = GREAT for limiting capital expenses early on.
2. All-in cost is under $50,000.
3. Gross month rent is a VERY respectable $750.
4. Neighborhood looks nice from Google Street View. I wouldn't be afraid to live there.
5. Surrounding properties have great market values (all worth $50K+).
6. Large lot size = less dense neighborhood.
7. Stone siding should hold up better in the elements of Indy.
8. I like the tree-lined neighborhood.
9. House ALREADY seems to be in decent shape.
Having learned earlier from a previous property (LEAD #2) that slipped away, I reply back requesting to put this bad boy UNDER CONTRACT!
Fingers Crossed! Am I one giant step closer to being a first-time home owner??? I think I am!
-My inability to close on a deal immediately, actually helped me in the long run. Being patient can pay off, as it did in this case.
-On the flip side, once that deal comes through, or you find an amazing deal, you have to jump on it (after proper due diligence).
-If investing in real estate is the strategy you're going with, you HAVE TO COMMIT and put your money where your mouth is. Make sure you have financing readily available and be mentally prepared to watch that number in your bank account shrink.