Indianapolis vs Cincinnati vs Cleveland - First time investor

[Amy Mitchell]

Hi Guys,

I'm a new/first-time investor looking to get my first investment property, but I'm having a difficult time deciding between 3 markets. I'm considering Indianapolis (near fountain square), Cincinnati, or Cleveland. If I invest in Cleveland I would only be interested in small multifamily properties, for Indy and Cincy I would be looking to invest in single-family homes which I would turn into STR or MTR. Any info from anyone investing in these markets would be greatly appreciated.

[Gloria N Gear]

Hi @Amy Mitchell --- I actually am part of @Becca F. team in Indianapolis.  I am an investor myself and have worked with OOS investors for 6 years now.  I like to start with a phone conversation just to get to know each other.  I will listen to your exact strategy and let you know where in Indianapolis I think that strategy would work.  And then I will help you build your team.  Different property managers, contractors, and lenders work better for your needs, personality, and the property & area you choose.  I will send you a list of recommendations.  I will PM you all my info, but let's have a conversation -- it doesn't obligate you to work with me, but hopefully will give you some education about Indy.

[John Clevenger]

@Amy Mitchell

Clearly both Gloria and I are biased however when you look at the broad metrics of the Indy area comparative to other markets I believe it is the most well rounded. I've outlined below some of the noteworthy things that would be pertinent to your decision on our area. 

• - Median sale price is 230k as of Feb. 
• - Indianapolis has rent rates climbing at the fastest rate in the nation (+8%)
• - 3rd highest YoY rent growth since last year of the same time. (14.85%)
• - Unemployment rate of 2.2%
• - IU Healthcare (near Northside) announced in January a 4.3B expansion
• - Mayor Joe Hogsett announced in January $80M to Indianapolis parks. And $190M in facility upgrades
• - 16 Tech Innovation District
• - A mixed-use 60-acre development including advanced technologies innovation district, including offices, research laboratories, parking garage, housing and retail space plus parks, walking paths and other amenities
• - Elanco (Animal health Leader and spinoff of Eli Lilly) building their new $100mil headquarters just south of the Indianapolis Zoo
• - Indy Eleven Investing over 1 Billion in the development of their new Eleven Park. A mixed use development project including their new soccer stadium (over 20 acres)
• I'd advise doing your own due diligence but I'm a die hard believer in Indy and think others will grow to believe the same as time progresses. 
• I'll send over some contacts you may find helpful now. Let me know if you have any questions or want to hop on a call! I'm sure Gloria or I will be able to help you through whatever you need here in Indy!
• Good luck!

[Patrick Drury]

@Amy Mitchell
Cleveland is a great market for cashflow. Just be aware of what neighborhood you are in. The area it can change pretty fast and POS are kind of a pain.  

[Mike D'Arrigo]

@Amy Mitchell I've been active in Indianapolis for over 10 years so I might be a little biased, but if you compare the economic and demographic trends of these markets, you'll see that Indianapolis is much stronger than the other two. Indy has a growing population, growing jobs and a modern/diverse economy which is all important to the long term value and returns on your investment. Personally, I would have Indy on the top of that list. Feel free to reach out if you'd like more insights. 

[Jack Krusinski]

Amy, I would first recommend identifying your real estate goals. Are you more focused on cash flow, appreciation, or a hybrid of both? Then start underwriting properties in each Market to see what performs the best for your goals. 

Cleveland is a great hybrid market for cash flow and appreciation. It offers a variety of jobs, but it is health care based. Also, something to consider is inventory in each market. You want to make sure that whatever your buy box is, is that your market offers inventory of that investment. 

[Nicolas Looman]

This is an awesome question that definitely takes multiple peoples input to weigh both markets. 

I read in this forum that taxes in Cleveland may be higher than that of Indianapolis but a lot of people tend to neglect the Akron market area. It's a half hour south of Cleveland proper with a population of 200k, a major engineering university, opportunity for STR with multiple hospitals in the area as well as less community guidelines such as point of sale or multifamily lead surface testing.

Tons of revitalization programs are committed for the next 10 years with some of them completed in the past 5. The rubber city is definitely a place to find good cap and equity return in the future.

Good Luck!

[Mark Jones]

Hi Amy,  I can be a resource in Indy as well.  Feel free to reach out if you have any questions.  

[Lauren Perry]

Hi Amy, 

I began investing in Indy remotely from the west coast back in 2019 and have since moved to the area. Over the past 4 years, I've had success with flips, BRRRRs, short-term rentals, SF and small/mid-size multi-family properties. Lots of opportunity here, just depends on your strategy and goals. I'd love to help answer any questions you have about the market so feel free to reach out anytime. 

Best,
Lauren

[Mark Masavage]

I'm new to the BiggerPocket's forum. This is a great thread.  Thanks for sharing, everyone. I am interested in the outcome. @Amy Mitchell do you have any follow-up or information to share concerning the Indy, Cincy markets? 

[Lalit R.]

Quote from @Jake Browning:

Cincinnati is a great area to invest. I know an outstanding agent in that area who will be able to point you in the direction you're looking for. He lives in Cincinnati and works solely with Bp investors. I'll Pm his information.

 Can you please share the agents details.

[Jake Browning]

Quote from @Lalit R.:

Quote from @Jake Browning:

Cincinnati is a great area to invest. I know an outstanding agent in that area who will be able to point you in the direction you're looking for. He lives in Cincinnati and works solely with Bp investors. I'll Pm his information.

 Can you please share the agents details.

I just DMed you!

[Natalia Kubik-Mackowiak]

Personally I am investing in Indianapolis. 

If you want to compare returns, you can use Doorhacker chrome extension for Zillow.

[Natalia Kubik-Mackowiak]

Quote from @Amy Mitchell:

Quote from @Becca F.:

@Amy Mitchell

I'm in California (Bay Area) and it's really difficult to buy here at these price points and cash flow positive (more like negative) now so I'm focusing out-of-state. I have a SFH in the Indianapolis metro area (suburb in class A neighborhood) but I bought it almost 10 years ago (used to live there). Depending on what county you're looking at, Hamilton County property tax rates are much higher for investors than primary home owners, 2.771% vs. 1.08%. I really like Carmel, Westfield, Noblesville and Fishers from an appreciation perspective, nice suburbs with good schools, but the prices are high now. My property taxes went up significantly which reduced my cash flow but my tenants are paying down my mortgage and I bought it for low price and low interest rate so I'm keeping the house

I'm looking in Indianapolis (Marion County) but I'm trying to narrow down the areas - I'm communicating with an investor friendly realtor. Being inside the 465 circle and the East side usually has lower priced homes than the West and North sides. I considered the Fountain Square area. I'm looking for SFH or duplexes (which seem to be rare), heavily leaning towards turn key or something with minor rehab (cosmetic work). I have a partial team in place for Indy: property manager, handyman, painter, roofing company in place, no contractor (yet). I'm also looking at Cincinnati.

 Hi Becca,

How did you find your partial team for Indy? Have you had any luck finding any properties in Indy so far?

 I have been investing in Indy since 2022. 4 houses to date. Also coded DoorHacker chrome extension for Zillow to screen through highest returns

[Amy Mitchell]

Quote from @Natalia Kubik-Mackowiak:

Quote from @Amy Mitchell:

Quote from @Becca F.:

@Amy Mitchell

I'm in California (Bay Area) and it's really difficult to buy here at these price points and cash flow positive (more like negative) now so I'm focusing out-of-state. I have a SFH in the Indianapolis metro area (suburb in class A neighborhood) but I bought it almost 10 years ago (used to live there). Depending on what county you're looking at, Hamilton County property tax rates are much higher for investors than primary home owners, 2.771% vs. 1.08%. I really like Carmel, Westfield, Noblesville and Fishers from an appreciation perspective, nice suburbs with good schools, but the prices are high now. My property taxes went up significantly which reduced my cash flow but my tenants are paying down my mortgage and I bought it for low price and low interest rate so I'm keeping the house

I'm looking in Indianapolis (Marion County) but I'm trying to narrow down the areas - I'm communicating with an investor friendly realtor. Being inside the 465 circle and the East side usually has lower priced homes than the West and North sides. I considered the Fountain Square area. I'm looking for SFH or duplexes (which seem to be rare), heavily leaning towards turn key or something with minor rehab (cosmetic work). I have a partial team in place for Indy: property manager, handyman, painter, roofing company in place, no contractor (yet). I'm also looking at Cincinnati.

 Hi Becca,

How did you find your partial team for Indy? Have you had any luck finding any properties in Indy so far?

 I have been investing in Indy since 2022. 4 houses to date. Also coded DoorHacker chrome extension for Zillow to screen through highest returns

 Hi Natalia -Mind if I send you a PM?

[Natalia Kubik-Mackowiak]

Sure thing!