Hammond Indiana? Any thoughts?

Question

Adrien C. · Answer

@Michael Bishop Hammond today isn’t the same Hammond when you grew up in the area. It’s improved a lot. Secondly, your assessment of Hammond is faulty because you are looking at it from the wrong perspective. You’re right in that upper middle class Caucasian folks from Crown Point and Dyer aren’t flocking to Hammond. What you’re missing is the mass exodus out of Illinois buying in Hammond (and all over NWI). That’s your target market and they are paying top dollar to leave IL. When I started wholesaling in 2016, my Hammond buyers mostly were buying for rentals as its near the top as far as best ROI for rentals in the region. Starting early 2017, I was selling more to flippers. Houses appreciated 30-50% (south of 165th and north of 150th- the middle still is C area). Houses worth $80k in 2016 are selling for $110k or higher now. A 3/1.5 with finished basement can catch $135-155k plus depending on the area. I flipped  a 4/2 brick house on magoun for $200k just a few weeks back. DOM for flipped houses is as low as the rest of the county. So whether flipping or buying for cashflow, Hammond is a fantastic market in NWI.

Adrien C. · Answer

I’d bump hose ratings up and put Dyer as an A and Hammond as a B. This is relative to NW Indiana and not comparing it to the Gold Coast of Chicago. Parts of Hammond are C but south of 165th is mostly B. East Chicago and Lake station are C areas for the most part.

Account Closed · Answer

@Sezuo Daudu I would call Hammond anywhere between a C- to a B area, depending on which park of Hammond. I would call some parts of 46327 and 46324 B-, whereas most of 46323 is B- to B. Hessville and the Purdue university area is pretty nice, and owner occupied. Watch out for property taxes on the up and up in Hammond. And Whiting (solid area for rents though). You're almost better off in Merrillville/Hobart/Griffith for true B class property. Pricier, but the reasonable tax rates make the cash flow just as good.

Adrien C. · Answer

@Sezuo Daudu You need to define specifically what you are looking for as far as ROI. Talk with people who invest in that area to see if it's realistic. If it is, analyze deals using the criteria you decided. If the deal matches your criteria, buy it. Having a system/process like this takes out the emotion and fear of making a bad decision.

Daniel Guerra · Answer

@Sezuo Daudu Hammond is a class C area.  There’s some ghetto spots in the middle of it.  I’d avoid that part of Hammond.

Dyer is a great area.  Its a class B neighborhood.

Merrillville is mostly mix from my understanding.

Adrien C. · Answer

Of course there are deals to be made- unless you're looking for a magical purple unicorn sort of deal. I'll buy 90-100 houses this year and wholesale 2/3s so deals are out there.

Adrien C. · Answer

heck- they just announced a second Starbucks going in so they have to be doing ok to buy that overpriced nasty stuff they call coffee.

Michael Bishop · Answer

@Sezuo Daudu my two cents, Dyer is being bought up by Chicago workers who are sick of Chicago prices. As a consequence, prices in Dyer are on the rise. I'd have to disagree with @Adrien S. (although he's done a lot of deals in the area, so probably more qualified than I am) and say that Hammond isn't a fantastic area and not many people from NWI (likely your target buyers) consider it very desirable compared to the likes of Dyer, Crown Point, Valpo, etc. If you're looking for fix and flip potential, I would consider Valparaiso as well; there are a decent amount of well prices properties that could use some work if you keep your eye on the active listings.

Source of info: I grew up in Crown Point, in fact I'm here now visiting family and friends, and moved to Austin in 2014. Also have friends and family that are involved in real estate in the area.

Stanley Cap · Answer

I 100 percent agree with you. I grew up in calumet city on State line. Im 34 now and I have  noticed that hammond is definitely on the up and up. I currently live on woodmar ave directly across from purdue. I have rented numerous houses in every part of hammond and can tell you Adrian is dead accurate. I too am looking to invest in hammond and are currently looking to invest in North hammond.

Hammond Indiana? Any thoughts?

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