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Project Overview
This scenario reviews a duplex investment opportunity in Indianapolis and evaluates whether the deal fits the investor’s strategy. Instead of relying on listing numbers alone, the analysis focuses on realistic rent assumptions, operating costs, and financing constraints to determine whether the property can deliver stable cash flow with manageable risk.
Property Snapshot
Total Size
List Price
Year Built
Address
Unit Mix
(~841 sq ft each)
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.
Base Case
Unit 2601 is underwritten at $1,050/month, while Unit 2603 remains $975 through April 2027, resulting in approximately $107/month cash flow at 25% down and ~7.25% financing.
Strategy Fit
This property appears better suited as a steady long-term hold rather than a typical BRRRR strategy, unless a clear value-add and refinance plan is identified.
Path to Buy
If Unit 2601 achieves $1,150+ rent or financing improves, the deal moves into acceptable territory. If both units reach ~$1,150 post-lease, DSCR and cash flow improve materially.
Key Investment Metrics
Gross Scheduled Rent
Estimated Cash Flow
DSCR
Cap Rate
Cash-on-Cash Return (Yr 1)
Risks & Open Questions
Several risks were identified during underwriting.
Thin Margin Risk
Under conservative underwriting the deal produces limited cash flow. Even a small change in rent or interest rate could move the property into negative cash flow territory.
Operating Expense Uncertainty
The listing reports Operating Expense: $0, which is unrealistic and indicates missing financial information that must be verified before committing to the deal.
Lease Constraint
One unit is leased at $975 through April 2027, limiting the ability to increase rent in the near term even if market rent rises. 
Decision Framework
Does the property align with the investor’s buy box and long-term strategy?
Do the income, expense, and financing assumptions hold up under conservative underwriting?
Is the execution path clear without relying on best-case assumptions?
Decision Outcome
Needs More Information
Based on the current underwriting, the property produces only minimal cash flow and is sensitive to small changes in rent or financing terms. At typical investor financing, the deal generates approximately $107/month in cash flow with a DSCR around 1.10, which leaves little margin for error. Additional verification of operating expenses and achievable rent for the vacant unit is required before confirming whether the investment meets the expected return thresholds.
