New Investor Looking into Evansville
Hi BP - I'm an out of state investor looking to get into the Evansville, IN market. My criteria is buy & hold rental properties, 2/3 BR SFH or small multi-family (2-6 units) under $200K. I've been working with a local real estate agent, have a property management company lined up, and reading through forums to get a better understanding of the market. My RE agent says that 47714 is probably the best area as far as tenant class and location due to it being close to the university. Wanted to see if anyone had any insight on other areas I should be looking. Also, would love to connect with any investors in the area to learn more about your experience and what to expect.
That is definitely some promising steps! One thing I would ask is what kind of return are you looking for or how are you evaluating properties to determine if they’re a right fit for you?
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You might want to follow the "Deep Dive" series we're doing on our BiggerPockets blog about Metro Detroit cities, City of Detroit Neighborhoods and comparing Metro Detroit to other hotspots investors usually consider:
Quote from @Casey McCoy:
That is definitely some promising steps! One thing I would ask is what kind of return are you looking for or how are you evaluating properties to determine if they’re a right fit for you?
Thanks Casey! Right now I'm looking mostly at cash flow as my main criteria, ~8% CoC. It's been tough to find properties that can fit that unless I rehab a property, but I'm not sure I want to take on a full rehab project for my first deal. I've been looking at properties that have been sitting on the market longer than 30 days to submit a lower offer, and I'm fine with doing a cosmetic rehab.
Hey Mike! I am very familiar with this area! I am not an agent though. I would look into the NE side of Evansville(47715) as well as the nearby town of Newburgh(47630). I think both these areas have much greater long term potential than 47714. Both of these areas are experiencing tremendous growth and development.
47714 has some benefits: UE has some foreign students who need housing, it also has some cheaper inventory and is more likely to have some rehab opportunities. IMO it has some pretty significant drawbacks. UE is declining and has been for years. I would not trust in its draw for a property that you are planning to hold for a long period of time. A lot of the neighborhoods in this zip code, particularly the southern portion, have serious crime issues. The problem has been getting worse for several years and the PD seem incapable of implementing a plan that will address it. Prepare yourself for the potential of tenant issues in this area which may be a challenge if you are out of state.
Im sure a talented agent will be able to find you a deal that pencils out well in any of these areas. I just wanted to mention some things to consider.
Hi Mike! 47714 is a promising area. It's where my house hack is located :) It only took me two weeks to get three qualified applicants and select one who has been a great tenant so far. I'll echo what David has stated in regards to crime as I do hear of violent crimes in the area. Fortunately, my neighborhood hasn't been impacted in quite some time. Look forward to connecting and chatting more!
Did you end up finding a place? I have a house, a duplex and a fiveplex in the area that we are looking to sell. Happy to connect if you are interested.
Hi @Mike Dolan and all
Did you end up making any moves in Evansville? I’m also interested in the area and am curious to hear how things went.
Quote from @David Lambert:Hi Mike, I agree with David. Newburgh is the growing suburb on east side of Evansville. Area will continue to grow and also has great school system. I myself am looking for flippers in that some market so if you know anyone interested let me know!
Hey Mike! I am very familiar with this area! I am not an agent though. I would look into the NE side of Evansville(47715) as well as the nearby town of Newburgh(47630). I think both these areas have much greater long term potential than 47714. Both of these areas are experiencing tremendous growth and development.
47714 has some benefits: UE has some foreign students who need housing, it also has some cheaper inventory and is more likely to have some rehab opportunities. IMO it has some pretty significant drawbacks. UE is declining and has been for years. I would not trust in its draw for a property that you are planning to hold for a long period of time. A lot of the neighborhoods in this zip code, particularly the southern portion, have serious crime issues. The problem has been getting worse for several years and the PD seem incapable of implementing a plan that will address it. Prepare yourself for the potential of tenant issues in this area which may be a challenge if you are out of state.
Im sure a talented agent will be able to find you a deal that pencils out well in any of these areas. I just wanted to mention some things to consider.