1440 Herschell Ave, Indianapolis, IN, 46202
Condition Notes
Only one exterior photo came with this listing — I don't have interior photos or a seller's disclosure to work from here, so I'm underwriting a conservative make-ready reserve rather than assuming pristine condition. What I can see: a tidy small bungalow, aluminum siding in serviceable shape, no visible roof sag or major deferred maintenance from the street, with a yard that needs a cleanup pass. County records show the current owner picked this up in 2021, completed renovation work shortly after, and has had it tenant-occupied and cash-flowing ever since — consistent with the 'Fair' condition rating on file rather than anything worse. Even so, zero interior visibility plus an as-is sale is exactly the situation where a real inspection earns its cost before you waive any contingencies. I'm glad to go take a look in person or record a video walkthrough before you decide — just let me know.
Strategy Comparison
The current lease already does the heavy lifting here — LTR at the in-place $1,425/month rent clears a 9.2% cash-on-cash return at full asking price, which is a strong number for a straightforward buy-and-hold with no rehab required. MTR and STR both technically pencil but land far weaker once furnishing, utilities, and higher management fees are counted — neither is a reason to pass up the current lease. BRRRR's numbers look fine in isolation but tie up far more cash than a conventional purchase for a lower return, since the asking price already sits above my ARV estimate — there's no refinance-driven equity to unlock. Flip doesn't work at all for the same reason: no spread between the ask and the ARV to capture.
LTR — current lease in place
This is the play — a real signed lease already in place at $1,425/month clears a 9.2% cash-on-cash return at full asking price with a standard 20%-down conventional loan, putting about $270/month in your pocket after everything. You're buying a property that's already proven it can carry a tenant, not underwriting a pro forma.
MTR — furnished mid-term rental
This one pencils, barely — the extra rent from furnishing it mostly gets absorbed by owner-paid utilities and the higher property-management fee, leaving well under $100/month once everything's counted. I wouldn't lead with this over the current lease already in place.
STR — short-term rental
This is essentially breakeven once licensing, furnishing, and a 20% co-hosting fee are counted — a small single-bath home in this pocket isn't a strong short-term-rental draw, and the real numbers show it. I wouldn't lead with this one; it's here so you can see exactly why.
BRRRR — cash/hard money in, refinance out
The cash-on-cash number here clears my strong bar on paper, but don't let that fool you — because the asking price already sits above my $97,500 ARV, a 75%-LTV refinance only unlocks $73,125, leaving $55,239 of cash stuck in the deal versus just $35,260 for a straight conventional purchase, for a LOWER cash-on-cash return than the current-lease LTR play above. There's no real value-add rehab spread here since the home was already renovated once by the current owner — this is an income property, not a refinance play, which is why I'm not leading with it.
Comps
Sale Comps
Five sold comps for comparable small 2-bed/1-bath homes in this immediate submarket, ranging $76-$143/sqft (a wide spread for homes this size) and blending to roughly $111/sqft — that supports a $92,500-$98,000 range on this home's 832 square feet.
Rent Comps
These five comps average about $1,124/month for comparable small 2/1 homes in this general submarket. The in-place lease at $1,425/month sits near the top of that range — plausible given the property's 2021 renovation, but worth confirming directly rather than assuming it holds on the next turnover.
The Numbers
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This analysis is provided for informational purposes only and does not constitute financial, legal, or investment advice. All figures are estimates based on available data and independent research at the time of preparation; they are not guaranteed and should be independently verified before making any purchase decision. Consult your own financial, legal, and tax advisors before acting on this information.