🧰 DIRECT DEAL SHEET — • Fountain Square (46203)

Property: 1406 Terrace Ave, Indianapolis, IN 46203

Strategy: You contract, close, rehab, and sell—no $0 assignment required, no split fees. This is a flip-ready deal for owner-occupant or cash investor.

📈 Market Comps & ARV Justification

• 1310 Olive St.: gut-remodeled 3 bed / 2.5 bath, 1,820 sf sold $488,500 (~$268/sf) in July 2025 (Zillow)
• 1306 Olive St.: 3 bed / 2.5 bath, 1,771 sf renovated, sold $549,900 (~$311/sf) in April 2025 (Zillow)
• Neighborhood Median Price: ~$345,000, up 8.7% YoY in June 2025 (Redfin)

Conclusion: With light high-end remodeling (luxury-lite finishes, modern layout), ARV estimates between $480k–$540k are realistic in this part of Fountain Square. We’re modeling with a conservative ARV of $490,000.

📊 Financial Profile (Estimated)

Investor ROI: ~19% cash-on-cash in ~60 days; IRR well over 200%, assuming hard-cap budget and quick turnaround.

🏗 Renovation Scope: Luxury-Light Upgrade (~$40K Cap)

• New cabinets, quartz countertops, premium appliances
• Wide laminate or engineered hardwood, tile work in wet areas
• Fresh interior paint, trim, lighting, modern door hardware
• Modern plumbing fixtures, upgraded toilets/shower heads
• Smart thermostat, HVAC tune, minor drywall/glitch fixes
• No structural remodeling or gut; preserves big-dollar bones

To keep the scope tight: no permit-heavy structural alterations, no flooring change from stable subfloors, no roof or foundation intervention.

⚖️ Key Risk Considerations

1. Price Risk: Comps remain strong, but flipping at $490k assumes buyer demand holds for premium finishes. A dip to $450k ARV reduces profit to ~$38k.
2. Mitigation: final buyers should validate comps + exit strategy before closing.
3. Hidden Subsurface Issues: Built in 1915 → possible electrical panels, roof, or plumbing surprises.
4. Mitigation: lock in a 5 business-day inspection window + allocate $10k within rehab for contingency.
5. Financing Bottleneck: Traditional lenders cap LTV on ARV + include rehab reserves. Since there’s zero assignment fee, the purchase price is the working cost—but credit lines might shorten.
6. Mitigation: Bring either firm JV capital or letter-of-credit from a rehab lender—2-day wire-ready preferred.
7. Timeline & Hold: Every extra week adds property taxes, insurance, and utilities to costs.
8. Mitigation: Aim to close within 14 calendar days of inspection removal; title company ready to expedite.

✅ Why This Deal Works—Plain & Practical

• Strong ARV upside: Interior finishes are where the market wants the house—clean, modern, no major external investment needed.
• Lean rehab model: $40k delivers like-new cosmetic impact—kitchen, bath, flooring—without permitting or structural complexity.
• Professional buyer fit: Perfect for investors targeting 8–12% net margin (≈ $75k+), using cash, hard-money, or rehab lines.
• Ignoring middling values: No need to price at the median $345k—this is about capturing value from premium finishes in a trending area.

📅 Next‑Steps & Terms Snapshot

• Purchase Price: $320,000 — paid by buyer at closing
• Inspection & Due Diligence Period: 5 business days
• Earnest Money Deposit: $5,000 (refundable only within inspection window)
• Closing Deadline: within 10–14 days after inspection removal
• Buyer Pays All Closing Costs (both purchase and resale)
• Rehab Budget Allowed: $40,000 (includes $10k hidden-issue contingency)

In short: no assignment fee, no hidden costs—price is clean, deals transparent, upside clear. You flip direct.

🧠 Bottom Line

• You buy: $325k
• You rehab: ~$40k
• ARV (high-end cosmetic): $490k
• You pay holding, soft & closing: ~$25k
• Your profit: ~ $78k (16% of ARV) before capital costs
• Your return: ~19% in ~60 days if executed right

⚡ If you’re a rehab cash buyer or investor serious about hands-on flips with measurable margins—this is a streamlined, data-driven opportunity with no assignment fee drama. Let me know when you're ready to start inspections, review comps, or partner with your contractor.