Investor / Project Manager · Pittsboro, IN · Member since 2016 · 4 posts · 1 vote
I'm thinking this might be a good way to start out with Buy and Hold in the Indianapolis area there's a lot of them and some are inexpensive. The flipping Market is kind of dry right now.
Flipper/Rehabber · South Jordan, UT · Member since 2016 · 142 posts · 37 votes
10y
Howdy, it depends on the area your shopping in. I've bought a few and have had mixed results. The better the area the longer the tenants stay and just the opposite the rougher the area gives you a higher tenant turnover. Values have been on the rise their and the returns are getting lower and lower. If you need an agent referral shoot me an email. I've worked with a couple good ones and I've also been ripped off by a couple shady investors.
Flipper/Rehabber · South Jordan, UT · Member since 2016 · 142 posts · 37 votes
10y
Howdy, it depends on the area your shopping in. I've bought a few and have had mixed results. The better the area the longer the tenants stay and just the opposite the rougher the area gives you a higher tenant turnover. Values have been on the rise their and the returns are getting lower and lower. If you need an agent referral shoot me an email. I've worked with a couple good ones and I've also been ripped off by a couple shady investors.
Investor · San Diego, CA · Member since 2015 · 111 posts · 34 votes
10y
I haven't purchased rentals in Indy, but I am aware that it is a great market for cash flow. I own in another Midwestern market that appears similar to Indianapolis.
Have you reviewed the MLS? If you plug the numbers into the BP calculators, you can assess the detail more thoroughly.
Usually, the Midwestern cities are better for buy/hold rather than flipping.
Real Estate Agent · Indianapolis, IN · Member since 2015 · 87 posts · 56 votes
10y
Hi @Jeff Springer! I'm a realtor in Indianapolis, and I will say that in my experience Indy is a predominately SFH market - meaning that's what most people are looking for in the area - both renters and buyers. Like @Chris Ramos said - a lot of the duplexes you'll see on the market are in the less desirable areas of town, hence the reduced price and increased inventory. That's not to say there aren't a few duplexes scattered around in the more desirable areas (Fountain Square and Bates Hendricks, for example). Ultimately, it really depends on the area the duplex is located in and what your risk tolerance is.
I'm happy to answer any questions about any specific properties you have in mind. I'll PM you my contact info.
Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
10y
@Jeff springer I agree with @erin donlan says. Indianapolis is best for sfr. Indy is a great market but MF is very tricky there. I know Indy well. Feel free to reach out if you want. If you really want MF I would recommend Kansas City
I own 2 duplexes, and manage another 4 for out of state/country investors... All of these are here in Indy. I have pretty good results with them.
Here are my thoughts:
Make sure utilities are paid by tenants. Worst case scenario you can take on paying the water/sewer. If you pay utils, tenants will crank the heat in the winter, and then open a window to cool down.. ASK ME HOW I KNOW!!!!
Understand that vacancy rates are going to be higher. You will get turnovers, and instead of it taking 2-4 weeks(SFR's), it's probably going to take 4-8 weeks to fill a vacancy in a multifam. They also will not stay long.. My average renter stays for 3 years, but it's about 1 year in multifams.
Location is everything. One of my duplexes is in a rough area of town, but it's also sandwiched between 3 churches, so I get a bit of a god buffer...
QUALIFY YOUR TENANTS! We complete background checks, credit checks, and eviction checks... Recently had a vacancy in one of my duplexes and we had 25 applicants. 23 of those stunk and were disqualified almost immediately.
You need to keep up the lawn maintenance. I don't take care of snow removal, but we do mow the lawns.
A new investor asked me today about multifams.. He said he thought I had a bad opinion of them.. I don't you just need to understand the weaknesses and be comfortable with them.
I make good bank off my multifams, but they are more work than a standard SFR.
Hit me up with PM's if you want to know more or have other questions.
Property Manager · Indianapolis, IN · Member since 2010 · 1k+ posts · 1k+ votes
10y
They are tougher to sell, but I personally like them. I have a handful of them. Cash flow is better. Turn over can be higher. Although i have one where tenants have been there 22 years so it goes both ways. If you aren't sure how long you'll keep a property single
Family would be better as they don't appreciate as well, and buyer pool is smaller.