Rental Property Investor · Fishers, IN · Member since 2016 · 45 posts · 30 votes
7y
Hi Daniel,
Yes Indianapolis is still a great place to invest in. I just started investing out there in June 2018 and have already bought 2 properties. The first property I bought in Lawrence for $77,000 with a 20% down payment and it cash flows almost $400 after all expenses are paid each month and the second property cash flows around $494 a month after all expenses are paid.
The second property I bought in speedway Indianapolis for $65,000 with a 20% down payment and put $28,000 into rehabbing it because I wanted to try the BRRRR method out myself. I didn't have the money for the rehab after I paid the 20% down payment and closing cost. So I opened up a line of credit and used that to find the entire rehab. The mortgage is $518 a month and it rents for $1,100 a month. I'm going to refinance the property in June because it's worth around 115K-120K now after the rehab because I turned it from a 3 bed/1.5 bath into a 4 bed/2 bath with and everything is new in the property at this point. I should be able to pull out about $38K-43K when I refinance the property. So to answer your other question about using the BRRRR stratagy. Yes it is possible to use it out there and I found both properties on the MLS and made offers lower then the asking price for both properties and they both excepted the offers without a problem. I live in California and rent a tiny studio because it's so expensive out here, but because of @David Greene podcast on investing out of state. I used the strategies from that podcast a book to invest with success of the state.
Rental Property Investor · Fishers, IN · Member since 2016 · 45 posts · 30 votes
7y
Hi Daniel,
Yes Indianapolis is still a great place to invest in. I just started investing out there in June 2018 and have already bought 2 properties. The first property I bought in Lawrence for $77,000 with a 20% down payment and it cash flows almost $400 after all expenses are paid each month and the second property cash flows around $494 a month after all expenses are paid.
The second property I bought in speedway Indianapolis for $65,000 with a 20% down payment and put $28,000 into rehabbing it because I wanted to try the BRRRR method out myself. I didn't have the money for the rehab after I paid the 20% down payment and closing cost. So I opened up a line of credit and used that to find the entire rehab. The mortgage is $518 a month and it rents for $1,100 a month. I'm going to refinance the property in June because it's worth around 115K-120K now after the rehab because I turned it from a 3 bed/1.5 bath into a 4 bed/2 bath with and everything is new in the property at this point. I should be able to pull out about $38K-43K when I refinance the property. So to answer your other question about using the BRRRR stratagy. Yes it is possible to use it out there and I found both properties on the MLS and made offers lower then the asking price for both properties and they both excepted the offers without a problem. I live in California and rent a tiny studio because it's so expensive out here, but because of @David Greene podcast on investing out of state. I used the strategies from that podcast a book to invest with success of the state.
Carmel, IN · Member since 2018 · 24 posts · 13 votes
7y
Hey @Daniel Mendez, indeed while Indianapolis is still a good place to invest with good cash flow, you not only have to find the right deal, but you also have to pick the right street. A street could be in a B area with nicer properties, but then the next block over could be a D area with most of the properties are boarded up and the grass is 3 feet tall. I know this because I drive through these areas everyday on my way to work. You can go on Loopnet to look for a broker in the Indy area who can help you draw out the which streets to invest and which streets to avoid. The MLS always has a good deal here and there, but the broker can also bring deals to you.
So:
1. Is Indianapolis still a good city to invest in? - Yes, but not just anywhere in Indianapolis.
2. Can I still find good deals through MLS? - Yes, and brokers bring good deals too
3. What’s the cash flow like? - It will depend on the property and area you choose, but it has good potential. I'm sure someone else can give you numbers.
That is true, I couldn't belive my eyes when I flew out to Indianapolis for the first time and saw some B class neighborhoods close to D neighborhoods but most of those areas I noticed where closer to the city of Indianapolis. when I drove around out there with my agent I notice areas out there that weren't as bad and they where actualy very safe and beutiful affordable neighborhoods. I grew up in San Diego my whole life and haven't experienced neighborhoods that change street by steer like that before, but with that being said if you have the right agent, property manager and lender by your side they will definitely help you avoid those ruff and bad investing areas for sure.
I've helped my father in law in buying 3 rental properties last year. Also helped my best friend buy his 2 rental properties last year as well. Currently helping 2 other friends get their first rentals as well. All three of us who bought our investment properties from out of state and have found success. We are all cash flow positive and have benifited also by sheltering our taxes because of depreciation from the properties we bought.
Investing in Indianapolis is great only if you have the right team put together that have your best interest at heart.
Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
7y
@Daniel Mendez To answer some of your questions, yes, Indianapolis is still a good cash flow market but you're not going to get any bargains on the MLS. It's also not a good market for multi families if that's what you were asking. The majority of small multi families are early 1900's single families converting to MF, in the rougher neighborhoods. The Indy market is also very competitive and inventory is very tight. I think you'll have a tough time doing the BRRRR strategy without having well connected boots on the ground.
Indy, is a very hot market to say the least, there are so many homes in all areas, vacant houses all over the place most are boarded up with high grass. the owners are just leaving there houses for many reasons, this place is a cash cow market. I saw so much today in a certain area it made my head spin. my note pad is filled up with houses, houses, houses, now let me get busy and contact these owners that have disappeared. Hot like fire crackers here in Naptown….lol
Yes Indianapolis is still a great place to invest in. I just started investing out there in June 2018 and have already bought 2 properties. The first property I bought in Lawrence for $77,000 with a 20% down payment and it cash flows almost $400 after all expenses are paid each month and the second property cash flows around $494 a month after all expenses are paid.
The second property I bought in speedway Indianapolis for $65,000 with a 20% down payment and put $28,000 into rehabbing it because I wanted to try the BRRRR method out myself. I didn't have the money for the rehab after I paid the 20% down payment and closing cost. So I opened up a line of credit and used that to find the entire rehab. The mortgage is $518 a month and it rents for $1,100 a month. I'm going to refinance the property in June because it's worth around 115K-120K now after the rehab because I turned it from a 3 bed/1.5 bath into a 4 bed/2 bath with and everything is new in the property at this point. I should be able to pull out about $38K-43K when I refinance the property. So to answer your other question about using the BRRRR stratagy. Yes it is possible to use it out there and I found both properties on the MLS and made offers lower then the asking price for both properties and they both excepted the offers without a problem. I live in California and rent a tiny studio because it's so expensive out here, but because of @David Greene podcast on investing out of state. I used the strategies from that podcast a book to invest with success of the state.
I hope this helps Daniel and have a great day.
-Luis Moreno
Luis, in regards to the financing that you did on your BRRRR property what lender did you go through that? Was it a conventional loan? Also, are you managing these properties? Or did you get a property management company?
@Daniel Mendez To answer some of your questions, yes, Indianapolis is still a good cash flow market but you're not going to get any bargains on the MLS. It's also not a good market for multi families if that's what you were asking. The majority of small multi families are early 1900's single families converting to MF, in the rougher neighborhoods. The Indy market is also very competitive and inventory is very tight. I think you'll have a tough time doing the BRRRR strategy without having well connected boots on the ground.
Mike, so do you feel like Indianapolis is more for Single Family homes?
Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
7y
@Daniel Mendez with a few exceptions, most of the MF in Indianapolis are old early 1900's converted single families in rougher parts of the city. We haven't found them to perform well at all.
@Daniel Mendez with a few exceptions, most of the MF in Indianapolis are old early 1900's converted single families in rougher parts of the city. We haven't found them to perform well at all.
I appreciate that insight, Mike.
In your opinion, what type of properties cash flow well in Indianapolis?
Silver Spring MD · Member since 2015 · 198 posts · 116 votes
7y
@Mike D'Arrigo I know you can't disprove a general rule with anecdotal evidence, but I've got two duplexes in Indianapolis and they are performing beautifully. One of the has also gained about 80k in value (80%) since I bought it 3 years ago.
Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
7y
@Rivy S. There are always exceptions to the rule which is why we have done a few multi families but that is over nearly 10 years. The majority are in older, rougher areas.
@Daniel Mendez with a few exceptions, most of the MF in Indianapolis are old early 1900's converted single families in rougher parts of the city. We haven't found them to perform well at all.
I appreciate that insight, Mike.
In your opinion, what type of properties cash flow well in Indianapolis?
Daniel, we focus on SFR in C+ and better neighborhoods in the suburbs.
@Daniel Mendez with a few exceptions, most of the MF in Indianapolis are old early 1900's converted single families in rougher parts of the city. We haven't found them to perform well at all.
I appreciate that insight, Mike.
In your opinion, what type of properties cash flow well in Indianapolis?
Daniel, we focus on SFR in C+ and better neighborhoods in the suburbs.
By any chance, is there like a map that could possibly tell me what neighborhoods are best and which aren't?
I am not from Indianapolis, but I know sometimes people will have maps available that show which are the bad neighborhoods and which aren't.
If not, do you have any recommendations as to which neighborhoods to look out for?
Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
7y
@Daniel Mendez unfortunately there is no map of good neighborhoods and bad neighborhoods. Indianapolis can vary block to block and even street to street. You really need to know the areas or work with someone on the ground that you can trust. Outside of spending some time on the ground and driving the neighborhoods, the next best thing you can do is familiarize yourself with home prices and rents in your target area. Prices and rents will tell you a lot about the neighborhood class. There are no shortcuts and nothing takes the place of experience.
Keep in mind too that this is a few years old at this point. I feel like Indy has continued to to improve though. Probably biggest changes are that the east side has a bit less red around the Rural st. Divide and there is some new construction right across the river on the west side in string town. Full disclosure: I invest there but don’t live so a local is who you really want to talk to but again, this map is at least a start.
I enjoy the market in Indianapolis. There are a lot of up and coming neighborhoods that are being revitalized. I am not sure about finding things on the MLS, but there are a lot of off market properties that you can take a look at. If you have any questions don't hesitate to ask.
Real Estate Agent · Chicago, IL · Member since 2017 · 75 posts · 37 votes
6y
@Daniel Mendez Hi Daniel, I myself am from Chicago, investing (wholesaling) in Indy. I typically have a few good deals that I send out to my buyers in the area, monthly.
Are you currently looking for properties in the area?