933 N Ewing St Fourplex Investment
Project Overview
Investment underwriting analysis for a four-unit multifamily property located in Indianapolis. The deal focuses on stabilizing rents across all units and improving operational efficiency. While in-place performance is limited, the property presents upside potential through lease-up of the vacant unit and rent stabilization, subject to verification of actual operating expenses and property condition.
Property Snapshot
Total Size
List Price
Year Built
Address
Unit Mix
Property Type
Key Assumptions
The following assumptions reflect the base underwriting scenario and highlight the key variables that could materially improve or weaken the investment outcome.
Income Stabilization Potential
The property is currently generating $3,324/month in-place rent, with one vacant unit. Stabilized performance assumes all four units leased at approximately $1,108/month, increasing gross rent to ~$4,432/month.
Expense Modeling
Operating expenses are based on modeled assumptions, as MLS data shows incomplete financials. Key assumptions include management (8%), maintenance (8%), utilities, insurance, and reserves, resulting in a stabilized NOI of approximately $27,025 annually.
Financing Sensitivity
The deal is sensitive to leverage and financing terms. Under typical financing scenarios, in-place DSCR is weak (~1.06x) but improves to ~1.43x after stabilization, indicating performance depends heavily on achieving target rents.
Key Investment Metrics
Gross Scheduled Rent
DSCR
DSCR
Cap Rate
Cash on Cash Return
Risks & Open Questions
Several risks were identified during underwriting.
Incomplete Financial Data
MLS operating expenses are reported as $0, indicating missing or unreliable financial data. Actual expenses may significantly impact NOI and returns.
Utility & Expense Uncertainty
Utility responsibility is unclear, and owner-paid utilities could materially increase operating costs and reduce profitability.
Property Condition (1920 Asset)
Given the age of the property, major systems such as roof, foundation, sewer, and mechanicals must be verified, as they may require significant capital expenditure.
Decision Framework
The property aligns with a buy-and-hold or BRRRR strategy, offering potential upside through lease-up and rent stabilization in a growing rental market.
While stabilized performance shows acceptable returns (~9% cap rate), current in-place performance is weak, making the deal dependent on execution.
The investment outcome depends on verifying actual expenses, lease agreements, property condition, and rent sustainability before proceeding.
Decision Outcome
Conditional Proceed
The deal presents a viable investment opportunity only if stabilized rents are achieved and actual operating expenses align with assumptions. Current in-place cash flow is limited, but improved performance post-stabilization can support acquisition under the right conditions.
