I'm looking to potentially put some more eyes in the Midwest and was thinking of Indiana in particular. I have some experience with parts of eastern Indiana, but was wondering if/where you fine people were seeing any growth/stability. I'm open to any suggestions and discussions, thanks!
@Doug Phillips I've lived in Kokomo, Indiana all my life and in the last five years or so that I've paid attention to the local rental property market, I've realized that Kokomo is somewhat of a hidden gem for investors. While the area is still fairly heavily dependent on the auto industry (Chrysler, Delphi & GM are three major employers), there has been a lot of growth and development in the downtown area. Depending on what your focus is (SFR, multifamily or larger apartment buildings), there are a decent number of options with monthly rents exceeding 2% of price in many cases. There are also a growing number of dependable property management companies in the area.
Yes I agree I have properties in Kokomo. CRM properties are the one I use, great team
Indy is looking to be a great place to invest in buy and hold rentals. Basically, the city itself has already hosted a Super Bowl. Which was funny because people objected, saying the city was too small to accommodate a sporting event of the SB scale. Except that every year the Indianapolis 500 goes off without a hitch, and is the single largest single day sporting even in the history of the planet.
Why I said that, every spare dollar goes to the Colts, Pacers, and the Motor Speedway. Peyton Manning is gone as is all of his money. Andrew Luck is great, but not Peyton. The Pacers are exciting, but only just. Indy's on the verge of losing what little it had to make in not an armpit between St. Louis and Cleveland.
In other words, the rental market is going to be just fine, as the lower income folks continue to suffer. Indy is a hard town, just like every other inner city and depressed area. Lot's of 70 year old homes can be bought for 50K and turned into a good cash flow with a good CAP.
Also, look at Lafayette. Not West Lafayette, although there is some coin in the Purdue rental...but Lafayette as a whole. There's this dividing line that's the Wabash River and it's a more civil boundary but very Hatfield v. McCoy. If you're on the west side it's because you work over there, or you're affiliated with Purdue. Lafayette folks don't cross the river if they don't have to between August and May. Unless to tailgate, that's okay.
Lafayette in turn has your true blue collar, struggling, uneducated factory worker. North 9th Street is loaded with rental homes that have long been converted into apartments. Lafayette is small and centrally built, so all the DUI recipients can still walk to the bars and to the softball fields.
It's an exceptionally depressing life in Lafayette, you should be able to turn quite a profit there.
I would totally invest there, if I could guarantee I'd never have to go back. It's actually a very pretty town, pretty low crime considering.
Account Closed I have a triplex and a single family in Lafayette. Numbers are great but I'm having some issues with vacancy at the moment. The market is getting somewhat competitive. I had an offer in on a SF a couple weeks ago and found out I was one of 13 that had an offer in.
Not surprised, there are a lot of 100 year old homes that could withstand a nuclear blast they're so sturdy. Folks have been turning them into great rentals...the word is clearly out.
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