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FourplexLTR

939 N Sherman Dr, Indianapolis, IN, 46201

Photos for this property are hosted on the MLS listing.

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property type
Fourplex
list price
$189,900
cap rate
15.2%
cash-on-cash return
32.4%

Condition Notes

This one presents in solid shape for its age: furnaces were replaced in 2021 and LVP flooring runs throughout all four units, so the big-ticket mechanical items are already handled. Kitchens and bathrooms are original and dated but functional — budget a modest reserve for eventual refreshes rather than an immediate rehab. A couple of exterior details (the second-floor stair railings) are worth a closer look in person, but nothing here points to a structural or major-systems problem.

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Strategy Comparison

This is the strongest cash flow story in the group I'm sending you, and it's backed by real operating numbers, not just a pro forma — trailing income over the last eight months annualizes to roughly $27,500 net, an 14.5% cap rate at the asking price. Push rents to the $1,050–$1,150/unit range that comparable 1BR units are getting on turnover and that cap rate moves into the high-teens. I'm not showing MTR or STR here — small 1BR units in this specific pocket aren't a strong furnished/short-term market, so LTR is the play.

LTR — current rents

Gross Annual Income$45,600
Cash Flow Monthly$1,232
Cap Rate15.2%
Cash-on-Cash Return36%
OutlookSTRONG

Conventional 20% down / 7.5% / 30-yr — this is a turnkey buy-and-hold, financed conventionally.

LTR — at market rent

Gross Annual Income$50,400
Cash Flow Monthly$1,688
Cap Rate17.1%
Cash-on-Cash Return49%
OutlookSTRONGER

Conventional 20% down / 7.5% / 30-yr — same financing, rents pushed to market on turnover.

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Comps

Sale Comps

AddressPriceConfigStatusSqft
1021 N Ewing St, 46201$214,900 list4x1BR/1BAactive
Near-eastside 1920s stock (aggregate)$172,000–$244,000market range2,240

Direct sold comps for a 4-unit, all-1BR building are scarce, so I'm leaning on the closest active comp with an identical unit mix plus a $/sqft range for comparable-era near-eastside buildings. Both support a value above the $189,900 ask.

Rent Comps

AddressRentSqftConfigSource
29 N Tacoma Ave, 46201$1,1005601BR/1BAMLS/active comp
RentHop 46201 zip average$1,1081BRRentHop

Both data points land $100–$200/mo above the current $950/unit rents, which is where I'd expect rents to land on the next turnover or renewal.

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The Numbers

Deal Terms
Purchase Price
$189,900
Down Payment
20%
Interest Rate
7.5%
Loan Term
30 yrs
Closing Costs
$5,697
Repair Budget
$6,000
Monthly Rent
$3,800
Annual Property Tax
$5,336
Annual Insurance
$0
Monthly HOA
$0
Property Management
10%
Maintenance Reserve
5%
Vacancy Reserve
5%
CapEx Reserve
5%
Projected Performance
Loan Amount
$151,920
Total Cash Invested
$49,677
Monthly P&I
$1,062
Monthly Operating Exp.
$1,395
Monthly Cash Flow
$1,343
Annual Cash Flow
$16,117
Cap Rate
15.2%
Cash-on-Cash Return
32.4%
ARV Estimate
$195,000
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Want to Talk Through This Deal?

Happy to walk through the numbers, the strategy, or anything else about this property.

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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.