Looking to buy first rental in Bloomington Indiana. Any advice?
TLDR: Looking for any general info/tips about rental market in Bloomington Indiana.
I've been eager to invest in real estate for the last few years and now finally raised my income/credit to get approved for a multi family in a decent area. I have $75K saved up to get started. I'm from Long Island NY and run a small business. I am not looking to do a house hack at this time.
I have been doing research and understand that Indiana is a popular state for investing. I see Bloomington is a nice area with several management companies and I'm assuming strong rental market due to the local university. I found a 3 unit property that should cash flow around $650 after mortgage, taxes, insurance and management fees. From my understanding this is a good margin for an out of state rental. However I came across some articles saying the area has laws that are less landlord friendly than the rest of the state such as strict occupancy permits?
Is anyone here familiar with investing in the area/things to know or look out for? Any info is appreciated thank you for your time.
@Jake Mango you might have to look at your numbers again.
$75k isn't getting you much leverage in town. It looks like you might be attempting to buy a property far from campus but still expecting rents from students near campus.
The landlord laws are fine enough, they're certainly strict for rentals. But it's to ensure you're not a slumlord and are providing a home that's in great working order. Safe, clean, everything works, etc.
Property values are high, but the price to rent ratio is hard to pull good numbers from unless you've gotten the grand slam deal of a century. Or unless you want a 5% cap and park your money.
Check out rentometer.com and narrow down the comps for your neighborhood.
Lmk if you want me to drive over there. I live in town.