402 N Parker Ave, Indianapolis, IN, 46201
Condition Notes
This one presents in solid, largely turnkey shape for its age. The big-ticket systems are already handled per ownership records — roof around 14-15 years old, furnace and AC around 6-7 years, water heater the same — so I'm not underwriting any major mechanical replacement here. What I'd budget for is cosmetic: dated cabinetry in both kitchens, worn carpet I'd swap for waterproof vinyl plank, fresh paint, and a bath refresh in each unit. That's the kind of turnover work that supports pushing rent from the current $1,200-$1,250 toward the $1,300+ range these units can command once refreshed. Nothing in the photos or the seller's records points to a structural or major-systems concern. I'm glad to go take a look in person or record a video walkthrough before you decide — just let me know.
Strategy Comparison
This is a documented-income duplex, not a value-add project — both units are occupied today under real leases totaling $2,450/mo, and even that current, un-improved number clears a strong cash-on-cash return at the asking price. I'm recommending LTR at a modest stabilized rent bump because it's the simplest path, keeps the existing income intact from day one, and matches how this property is actually being marketed. MTR and STR both pencil to real, strong numbers too — STR in particular is the best return on paper — but both mean displacing paying tenants and taking on real operational lift, and my STR revenue figure leans on a discounted citywide estimate rather than a hard local comp. A cash-acquisition BRRRR is a genuine option for a cash buyer who wants capital back out. Flip doesn't work at all — there's no rehab spread to capture on a purchase already priced near its own post-rehab value.
LTR — stabilized market rent, conventional financing
This is the one I'd lead with. Even at the CURRENT in-place rents — no increase at all — this pencils to roughly $418/mo cash flow and just over 8% cash-on-cash, comfortably in strong territory before any of the rehab upside. Push both units to the $1,300 stabilized rent this corridor supports and it moves to $530/mo and 10.4% cash-on-cash. You're buying documented, in-place income on day one — not a pro forma.
MTR — furnished mid-term rental
Furnishing both units (~$4,000/unit, folded into cash invested) and taking on owner-paid utilities and a higher PM fee still lands a hair ahead of straight LTR on cash-on-cash, at real dollars close to it. It's a genuine option, but it means displacing two paying tenants and running two furnished listings instead of one simple long-term hold — I'd only lean this direction if you specifically want the mid-term-rental niche.
STR — both units
The strongest number on the page, and Marion County doesn't require owner-occupancy for a licensed STR, so there's no legal blocker here. The catch is real, though: this means displacing both in-place tenants, furnishing two units, pulling a license, and self-managing two separate nightly listings — and my ADR is a modeled, discounted estimate rather than a hard local comp. I'm showing this with real numbers because it's a legitimate option, not burying it — but LTR is the one I'd actually lead with given the operational lift here.
BRRRR — cash acquisition, post-refi
Buy and repair with cash, then refinance at 75% of my $195,000 ARV. You recycle about 70% of your capital ($146,250 of the $207,374 you put in) and still walk away with essentially the same cash flow as a straight conventional purchase. This works if you have the cash to move fast and want that capital back out to redeploy — the ARV here isn't dramatically above the purchase price, so it won't outperform a conventional purchase loan, but it's a genuinely viable capital-recycling path for a cash buyer.
BRRRR — hard-money acquisition, post-refi
Internal figures only — this variant has a real complication I didn't want to put in front of a client without the full picture: the hard-money loan (90% of purchase plus 100% of repairs, $186,110) is LARGER than the 75%-of-ARV refinance loan that pays it off ($146,250). That's a $39,860 shortfall the buyer has to bridge with additional cash at refinance — still cash-flow-positive and technically strong afterward, but not the clean recycle story the cash-acquisition variant tells. Kept out of the PDF for that reason; showing the all-cash BRRRR variant instead.
Comps
Sale Comps
Direct recent sold comps for a small 2-unit duplex in this immediate corridor are scarce — confirmed independently, not just taking the listing's word for it — so I'm leaning on the closest active comps plus a weighted 4-provider AVM. The subject at $184,900 ($92,450/unit) lines up almost exactly with the two closest unrenovated comps and sits well below the renovated-tier comp.
Rent Comps
This corridor's 2BR asks run $1,195-$1,600/mo, comfortably bracketing both the $1,200/$1,250 in-place leases and the $1,300/unit stabilized rent I'm underwriting after the light cosmetic work.
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.