3724 Forest Manor Ave, Indianapolis, IN, 46218
Condition Notes
This property is mid an apparently abandoned prior renovation, not simply an old, neglected house -- partially hung drywall, partially installed kitchen cabinets, a bathroom rough-in with copper plumbing stub-outs already run, and a genuinely updated electrical panel (newer breakers) all point to real work that was started and stopped, not never begun. Offsetting that: construction debris throughout, overgrown exterior, one plywood-boarded window, and a visible crack in a basement foundation block wall that needs a professional structural evaluation before finalizing a repair budget. A relatively new-looking gas furnace is visible in the basement. The basement itself (1,117 sf) is unfinished/utility-grade; finishing it out is optional upside, not included in the base repair number.
Strategy Comparison
Proceed -- Flip is the play: cash nets the most profit ($16,626, 10.3% ROI); hard money frees up capital at the cost of about $12,000 in points and interest ($4,654 profit, 19.2% ROI on cash invested). All-cash LTR is a credible fallback at $621/mo if you'd rather hold than flip -- BRRRR doesn't work here (runs about -$351/mo either way after refinance). MTR and STR were also evaluated but don't pencil out in this pocket (no real demand driver nearby) -- not shown here; ask if you'd like to see the numbers.
Flip (cash)
Requires the full $161,974 (purchase + repair + costs) in cash, but keeps the most profit -- $16,626, 10.3% ROI over 6 months. No financing cost eats into the spread.
Flip (hard money)
Only $24,296 of your own cash required (a 90% loan-to-cost hard money loan funds the purchase and the full rehab) -- but $11,972 in points and interest comes straight out of the profit, leaving $4,654 (19.2% ROI on the cash actually invested). This is a capital-efficiency trade, not a bigger payday -- the all-cash path nets $11,972 more in real dollars.
BRRRR (cash acquisition)
$22,324 left in the deal after refinancing, but runs about -$351/mo -- doesn't cash-flow at $1,400/mo rent against the $142,500 refinance loan. Not recommended as a refinanced long-term hold.
BRRRR (hard money acquisition)
$34,296 left in the deal, same -$351/mo shortfall as the cash-acquisition variant.
LTR (cash)
All-cash acquisition -- this seller requires cash or hard money at close, no direct conventional purchase available. Held unleveraged, no mortgage.
LTR (hard money -> refinance)
Acquisition and rehab bridged with hard money, then refinanced into permanent 75%-ARV financing once stabilized -- the same mechanic BRRRR uses, but the property is held rather than the capital recycled out.
Comps
Sale Comps
Moderate ARV confidence -- 3 of 9 total comps considered were independently corroborated; the other 3 (3451 N Colorado Ave, 3611 N Sherman Dr, 3512 N Grant Ave) should be confirmed against MLS directly before finalizing an offer.
Rent Comps
The Numbers
Want to Talk Through This Deal?
Happy to walk through the numbers, the strategy, or anything else about this property.
All property valuations, rental income projections, expense estimates, return calculations, and other financial figures presented are estimates only and are based on assumptions that may or may not prove accurate. These projections are not warranties, guarantees, or promises of future performance. Actual results may differ materially based on market conditions, property condition, local regulations, tenant demand, operating costs, and numerous other factors. Conduct independent analysis, hire qualified professionals (appraisers, inspectors, accountants, attorneys), and verify all information before making any investment decisions.