Rental Property Investor · Tri-Valley, CA · Member since 2016 · 9 posts · 2 votes
Hi everyone, I'm a newbie from the bay area in CA, one of the most notoriously expensive area. I'm currently looking for out-of-state investment in a rental SFH in the Indianapolis area. I used to live in Indy for about 3 years and that's where I met my husband too :) So it always holds a special place in my heart.
Anyway, I lived close to 71st and Binford and loved the convenience of that area. So I'm looking for decent SFH's around that area maybe stretching out to 56th & Binford and Castleton/I-69 & E96th St. What I'm interested in is SFH's in the $170K price point, 3+beds & 2+baths, rental income around $800 - $1000. I haven't been back for the past 6 years, so I'm not sure if this is even possible. I'd love to connect with local investors, realtors & property management companies to purchase my first rental property.
Real Estate Agent · Indianapolis, IN · Member since 2015 · 87 posts · 56 votes
9y
Welcome @Jing Tan! I'm familiar with the area - I currently live up in Castleton. Your rent projections are a little low - I'd say you could clear $1200/mo pretty easily for that price point. I'm an agent and investor in the area, and work with out of town investors, so happy to help you out if I can!
Welcome to Bigger Pockets. Make sure to listen to the podcasts. They are very informative, and contain ample information. https://www.biggerpockets.com/blogs/
Rental Property Investor · Tri-Valley, CA · Member since 2016 · 9 posts · 2 votes
9y
@Ethan Anderson Hi Ethan, I'm pretty new to real estate investment, and I also have a pretty demanding full time job. So I'm looking more for SFH's in decent conditions, even turn-key properties.
Rental Property Investor · Tri-Valley, CA · Member since 2016 · 9 posts · 2 votes
9y
@Mark Nolan Thanks Mark! I have been listening to the podcasts recently, which got me more and more excited to get my first rental property hopefully soon :)
Sunnyvale, CA · Member since 2016 · 77 posts · 26 votes
9y
I agree it makes much more sense to invest in Midwest than in the Bay Area.
However, just an observation. The hotness of a market is negatively related to the profitability. I hear a lot about Indy (also Cleveland) recently to the extent that I start to doubt the profitability. Also there is a mild correction to the market coming (expected by most). Anyways, run your numbers and have boots on-ground.
Sunnyvale, CA · Member since 2016 · 77 posts · 26 votes
9y
Greg Hamer Too much money chasing some asset will drive up price and drive down profits. I am not sure if that is happening in Indy or not, but worth noticing.
Currently across us, the house price is already high. Especially in the apartment sector, huge influx of invest has driven profits down a lot
Investor · Indianapolis, IN · Member since 2016 · 5 posts · 2 votes
9y
Hello! I live in downtown Indy and purchased my condo three years ago. I wanted to chip in. I would not worry about the Carrier plant closing. I have not seen that impact the market or have heard anyone even bring it up. I would say to definitely run the numbers, as the market has been very hot the past few years. Profitability is possible, but you just have to find the deals and be smart.
Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
9y
@Jing Tan the areas that you mention and are familiar with in Indianapolis are nice areas but not great rental areas. The prices are too high to cash flow well and give you a good ROI. The price and rents that you mention are only a .5% or less rent ratio. With those kinds of numbers, you won't cash flow and might as well just buy in CA. Personally, I think you can do much better in the $90K to $110K range in KC. We sell a lot of turn keys in Indy in that class. I'll be happy to share my thoughts with you in more detail if you want to contact me.
Rental Property Investor · Tri-Valley, CA · Member since 2016 · 9 posts · 2 votes
9y
@Mike D'Arrigo Thanks Mike! You can tell I'm a newbie to all this. Just listened to show 40 of the BP podcast and it looks like the price point that I had listed out originally provided very poor cash flow opportunities, how dumb! I've read a few of your posts and would love to hear your thoughts. Turn-key properties might be a better option for me looks like.
Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
9y
@Jing Tan I'd be happy to talk to you more. Also, be sure to check out some of my podcasts on my website, especially the ones on Indianapolis and turn key properties.
We work with several of the top wholesalers in the Indianapolis market. Feel free to contact me and I will be more than happy to give you the names and numbers.
Hi everyone, I'm a newbie from the bay area in CA, one of the most notoriously expensive area. I'm currently looking for out-of-state investment in a rental SFH in the Indianapolis area. I used to live in Indy for about 3 years and that's where I met my husband too :) So it always holds a special place in my heart.
Anyway, I lived close to 71st and Binford and loved the convenience of that area. So I'm looking for decent SFH's around that area maybe stretching out to 56th & Binford and Castleton/I-69 & E96th St. What I'm interested in is SFH's in the $170K price point, 3+beds & 2+baths, rental income around $800 - $1000. I haven't been back for the past 6 years, so I'm not sure if this is even possible. I'd love to connect with local investors, realtors & property management companies to purchase my first rental property.
Thanks a bunch!!
Hi Jing,
Congratulations on taking the first steps for your investments! I agree with some of the others on here, turnkey is probably one of the best ways for you to earn passive income out of state. It really frees you up and allows you to know your investments are working for you in that market. I know many investors who live in NY and CA who invest in the Midwest or other markets where they can see a better ROI. When you are out of state, turnkey just makes sense, especially if you are working a full time job back home.
Feel free to send me a message with any questions.
I work pretty extensively in the Indy market and I am not seeing a downturn.. I am picking up a lot of investors, and there is still a lot of deals to be had.
I own a property management company, and even though November/December are traditionally a slow down period, we are still getting quite a few applications on our properties that are coming up for rent..
There is 852,000 people in Indianapolis, it's not a huge market but it's pretty big... There are plenty of deals and profit to be had for those who are looking for it..
We offer a service to our clients, where we peruse the MLS for properties under 150k that are listed each day.. If an investor is on that list and looking diligently, we are finding and getting under contract 1 deal, at least, a week... I put 3 deals under contract in just this past week.. Those came from both wholesalers and our daily deal list...
I hear you about saturation. I just remember that even in the big downturn of 2007, we only had price drops on average of about 3%... So in 2010, bread and butter neighborhoods with houses 10-15 years old were only down about 10% on average... We don't get the crazy fluctuations of the Californias, Colorados, ETC..
Just my 2 cents.. I think you can go about to any market and find deals, but I am going crazy with business currently here in Indiana.
Investor · Indianapolis, IN · Member since 2016 · 70 posts · 14 votes
9y
Hi Jing,
Welcome to BP glad to see you've joined. If I find anything I will be sure to let you know. I know the area pretty well and also am currently living in the California market so I know your struggle lol.
Talk soon,
Terone Johnson