Hammond, IN First investment?

Question

Hello everyone,

I am looking to invest but not sure exactly where to do so because my market is very expensive. I found someone offering a turnkey in Hammond, IN with 12% coc. I just wanted to ask fellow investors their opinion on the area. I see that Hammon is developing neighborhood and has potential. But is it good for first-time investment? Can it be risky?

Thanks,

Harinder Singh

Harinder Singh · Answer

Account Closed Thank you so much, I really appreciate the info. I will go to the location at least once before I decide for sure.

Account Closed · Answer

@Harinder Singh

Hammond has good and bad areas like most towns. It can be very street by street. Boots on the ground are probably best as others have mentioned.

There are some definite benefits to the area. It is close to Chicago, so it is a relatively easy commute for people to work in the City, but there are definitely tax benefits for them to live in Indiana.

Do your research, and make sure there aren’t any bad assumptions in your numbers. A few blocks can make a big difference in how much you can rent for.

Ashlee Davis · Answer

@Harinder Singh Hi I'm a licensed realtor and investor in Northwest Indiana I was born and raised in Hammond let me know if I can help assist you

Connor O'Brien · Answer

@Harinder Singh it’s block by block but yes I think NWI as whole is a great investment. Personally I doubt you’d see as much appreciation in single family as you would in small multi(there are a lot of quality brick 2/3 flats that will last a long time as opposed to a tiny 800sqrft 2 bedroom SFH of which there are also many)

also the corner of Hammond where I work (right off Indianapolis is particularly well situated) I like the more inland portion less but also probably great for cash flow

Harinder Singh · Answer

@Connor O'Brien Thanks a lot for the neighborhood information. Do you believe it's a great location for investment as far as cash flow as well as appriciation. I see it is growing and developing, yet some parts are bad as well. I was wondering if the risk is worth the investment?

Connor O'Brien · Answer

I’ve worked in Hammond for the past 5 years- it’s an manufacturing town with 2-4 light industrial plants (Cargill, Unilever) and also serves as the inland neighbor to BP whiting (the largest oil refinery in the Midwest). When oil is booming you’ll see many Craigslist ads for seasonal worker lodging.

Harinder Singh · Answer

@Winston Covington Great information! Thanks, I will do my own research and figure it out.

Winston Covington · Answer

Sometimes there is nothing better than putting your own boots on the ground to check out a new area. Do your homework and research ahead of time to help reduce the risk of investing in a bad neighborhood. Speak with local Realtors and Property Managers to get a better feel for the area and rents. Also, call the local Police Dept. and speak with their Public Information Officer as they should be able to give you the crime stats.  Good luvk.

Harinder Singh · Answer

@Austen Mueller Thanks for the reply. I ran my own numbers, overall everything looks great. I am just worried about the neigbhood and tenant.

Austen Mueller · Answer

There is always inherent risk. I do not know anything about the area however I would make sure you do your due diligence and understand how they project a 12% coc. I do not know who your going through but make sure you ask questions and do your own analysis to make sure it matches up.