Turn key investments in Indy?

Question

I am interested in finding a small SFR via turn key in Indianapolis this Spring. What are the questions I should be asking myself?

Larry Fried · Answer

@Tim James Hi and welcome to BP!  I am up the road from you a ways in Eugene.  I have property investments in Indy, among other places, and I can tell you the price point you are looking at of less than $50k with that rent level can have a lot of problems.  Best left to those who are local.

Tim James · Answer

Thank you - I will take these things into account. Best to familiarize myself with a local market to start out, it seems. Thank you for the instructive posts!

Mike D'Arrigo · Answer

T, I would normally tell you not to choose a market just because you have family there but in this case, that's an added bonus. First and foremost important are the economic and demographic fundamentals of the market. In this case however, you're fortunate to have family in a very strong market.

Mike D'Arrigo · Answer

@Larry Fried is absolutely right.

Mike D'Arrigo · Answer

Tim, these will not be B class for this price and rent. Anything renting for $500 will be in a D class neighborhood. Having said that, you should be able to get more than $500 for a $50,000 house. That's still going to be far from a B class property though. You really have to know the areas and be careful. I think as an out of state investor, your wise to look for B class. I think you're just going to have to readjust your expectations on price.

Jim Holmes · Answer

Tim

How about west of Indy, the Terre Haute and Brazil area. I know of several turn key properties for well under 50,000 that rent for 500. In c+ neighborhoods. There are several good , well established Property Management Companies in Terre Haute as well. I was born and raised in Terre Haute, it's a great area. Thanks. Jim Holmes

Tim James · Answer

Thank you all for your helpful input!

I am looking in Indy because my family lives there and I often fly in to Indiana to visit anyway. It will make my trips back to the Midwest dual-purpose.

In terms of criteria, I am looking for a small B house <$50,000 that rents for ~$500.

Christine Kankowski · Answer

A few questions:   How is the neighborhood?  what is the crime rate?  How has employment and population grown in this area,  What could this house rent for? How much is needed for repairs?  How long has it been vacant?  Does it have heat, AC? Who is going to manage it for you?  Can you get a loan on it?  What are the taxes? are there any lines on the property that need to be cleared?

Is it in an area that rents mainly to lower income people?

Just a start...

Turn key investments in Indy?

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