Midwest investment - is $650 for a 2 bedroom too low?

Question

I'm looking for a duplex in Indianapolis, I found one where the #'s seem to work, but the rent is only $650 for a 2/1, it seems too low to make it worth the property management's while, the zip code says the schools have good ratings. Does it seem reasonable to rent a duplex for $650 in the Midwest?

zip code 46201

Jabari Long · Answer

www.RentOMeter.com is my go to site for checking rental rates. If the schools are good the deal is definitely work looking further into.

Tyler Jahnke · Answer

Hi @Diana Villalon - I'd say $650 per month is pretty low which also generally bring with it a certain type of tenant class. Looking at your zip code of 46201, you are probably in one of the more rough neighborhoods in Indy.

Make sure to take a look at a crime map and ask yourself if you're willing to take on the risk of those neighborhoods. Not to scare you away, but you'll probably have to hold for a few years before the neighborhood turns around (it's starting slowly).

If the duplex is in Emerson Height as close as possible to Irvington, you should be OK, or the east-side of Little Flower is good too. But, anything between Woodruff Place and Emerson Heights is pretty rough.

Also in talking to residents in the area last year, I also hear that with heavy rains a lot of property flooding occurs because the storm drains feed into the sewer lines. But, you'll have to verify that 100% because this was just from locals I talked to.

Best of luck and let me know if you have any questions! I have a couple properties in Indy.

-Tyler

Dennis M. · Answer

I’ve got 2/1 that rent for 450 lol so yeah 650 isn’t too low . Just depends on market prices in the area .

Tom Ott · Answer

Depending on the zip code, sure. I have seen them from $660-$900. Renovations and location matter.

James Wise · Answer

Yes. We've got 100's of duplexes with price points around $650/mo per unit in our Midwestern portfolio (Cleveland)

Angela Smith · Answer

I have a 2:1 single family home in Christian Park that rented this week for $775. Christian Park is quiet and safe and it is in the 46201 zip code. C class. Working class families.

I agree with previous comments about duplex in Indy. They rent for less and they attract riff raff.

Good luck with your search.

Jeff Schechter · Answer

As a turnkey provider, we have found that the duplexes in that area are usually more trouble than they are worth. We stick to SFH's, and have a lot of success with that. Anyone who can afford $650/mo for half a house, will find a way to pay $695 -725 for a single, and have their privacy...they will also make much better renters. Unless you get lucky, and it's on a very nice street, this is probably not a good buy.

Ryan Dossey · Answer

If you'd like to PM me the address I'm happy to give you my feedback. 46201 has a VERY wide range of properties inside of it.

Ryan Rominger · Answer

Hi @Diana Villalon

I’m a property manager and RE broker here in Indy and I’ve helped several investors find properties where the BRRRR method would work.

The answer to your question definitely depends on the area. There are some parts of Indy where $650 for a 2;1 might even be too high. For the most part though, in Indy’s A, B, and C neighborhoods I would say that, yes, $650 is generally low for a 2;1.

Hope this helps! Let me know if you ever what to chat Indy real estate!

Midwest investment - is $650 for a 2 bedroom too low?

Midwest investment - is $650 for a 2 bedroom too low?

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