New and Considering Income Property in Indianapolis or elsewhere

17 Replies

Hi there!

My wife and I bought a condo in Southern CA in 2010. Since then we have renovated it and we now have a significant amount of equity (about $250k). 

We are thinking about selling and moving somewhere with a LCOL and leveraging the sale proceeds to buy a bunch of income properties. We figure we can set up shop in a city for a couple of years while we find a good support team and pick up several rental properties, then move along to another city to find more rental properties and diversify. We figure that if we do this right, this could be "passive" income that can support us for life.


We saw "Good Bones" on HGTV and Indianapolis piqued our interest. I did some research and it seems like the city is getting better and better, but you can still find turnkey properties for $60k-$100k with solid cashflow. But, we are open to just about anywhere. In your experience, is Indianapolis a good spot to start or are there other markets that are better suited for finding income properties?

We are totally new to this, so any other advice would be very much appreciated! Thanks in advance!

@Joe Sanada Indianapolis is a good area to invest right now. For cash flow, almost anywhere in the Midwest is great right now! A lot of people from your state have been coming to Cincy and other Ohio cities like Cleveland and Columbus and buying places up.

Originally posted by @Joe Sanada :

Hi there!

My wife and I bought a condo in Southern CA in 2010. Since then we have renovated it and we now have a significant amount of equity (about $250k). 

We are thinking about selling and moving somewhere with a LCOL and leveraging the sale proceeds to buy a bunch of income properties. We figure we can set up shop in a city for a couple of years while we find a good support team and pick up several rental properties, then move along to another city to find more rental properties and diversify. We figure that if we do this right, this could be "passive" income that can support us for life.


We saw "Good Bones" on HGTV and Indianapolis piqued our interest. I did some research and it seems like the city is getting better and better, but you can still find turnkey properties for $60k-$100k with solid cashflow. But, we are open to just about anywhere. In your experience, is Indianapolis a good spot to start or are there other markets that are better suited for finding income properties?

We are totally new to this, so any other advice would be very much appreciated! Thanks in advance!

 Welcome to the site Joe!

Joe,
Welcome!
Indianapolis is a great area for investing. There are a lot of up and coming areas with potential.
Feel free to reach out and I can help guide you, or put you in touch with people who can as well!
Good luck!

@Joe Sanada I have turnkeys in Birmingham, Atlanta and one in Indianapolis. It’s a pretty solid place for cashflow. It’s not going to appreciate but all the service providers are there for out of state buyers.

Just make sure you pick wisely.. if your considering Morris/Oceanpointe  be SURE to read the long threads on those companies..  there are pockets of indy that I really like personally .. buy the top of the market not the bottom.. will treat you better in the long run

@Josh Sohar My wife and I are planning a visit to Indianapolis some time in the next couple of months. I'll reach out when we are a little closer to the trip. 

@Lane Kawaoka You mentioned that the resources are there for out of state investors. By any chance would you mind sending me contact information for who you are working with?

@Jay Hinrichs Thank you for the tips and for the heads up about Morris/Oceanpointe. I don't think that I've been looking at anything related to Morris/Oceanpointe. But, I saw a brief negative comment about Morris/Oceanpointe in another thread and I meant to circle back to see what was going on. I'll be sure to look into it more thoroughly. 

Originally posted by @Joe Sanada :

Hi there!

My wife and I bought a condo in Southern CA in 2010. Since then we have renovated it and we now have a significant amount of equity (about $250k). 

We are thinking about selling and moving somewhere with a LCOL and leveraging the sale proceeds to buy a bunch of income properties. We figure we can set up shop in a city for a couple of years while we find a good support team and pick up several rental properties, then move along to another city to find more rental properties and diversify. We figure that if we do this right, this could be "passive" income that can support us for life.


We saw "Good Bones" on HGTV and Indianapolis piqued our interest. I did some research and it seems like the city is getting better and better, but you can still find turnkey properties for $60k-$100k with solid cashflow. But, we are open to just about anywhere. In your experience, is Indianapolis a good spot to start or are there other markets that are better suited for finding income properties?

We are totally new to this, so any other advice would be very much appreciated! Thanks in advance!

 Hello and welcome! Best of luck to you!

@Joe Sanada Indianapolis is a great cash flow market for several reasons. It offers strong cash flow and COC ROI but it also has a diverse and modern economy. Indy has better population and job growth than a lot of popular cash flow markets. Just last week, Amazon announced that Indianapolis made their list of top 20 markets out of over 200 for their 2nd headquarters. I would also add Kansas City to your short list. KC is very similar to Indianapolis. We've been active in both markets since 2010 and have had a lot of success.

Originally posted by @Lane Kawaoka :

Joe Sanada I have turnkeys in Birmingham, Atlanta and one in Indianapolis. It’s a pretty solid place for cashflow. It’s not going to appreciate but all the service providers are there for out of state buyers.

 Lane, I wouldn't say that Indianapolis isn't going to appreciate. It's not going to appreciate anywhere close to HI or CA or other high appreciation markets but Indy has been seeing some strong appreciation the last 2 years or so---even double digits during some periods. Currently prices are rising about 6.5% YOY.

Hey Joe, 

I am a Cleveland Ohio guy, cash flow is AMAZING, but the appreciation is not great. With that said, you can buy below market value pretty easily, so appreciation is not as big of deal. If ya wanna know more about Cleveland you can PM me. 

Good luck wherever ya buy!

Hey there you all! Great info. I’m an investor from California and currently have 6 units in Kansas City, Mo. I want to get into the Indianapolis market but am having difficulty targeting B to C+ neighborhoods with properties at $40k-$60k per door (rents at $800 or more a month). I don’t know really where to begin. Does anyone have zip codes or areas to look for and or stay away from? For example, when I was looking in Missouri everyone knew to stay away from 64127,64128,64129, 64130 etc. Also, try and stay out of the 435 loop. Every article I read on BP is about Indianapolis is street to street. There has to be something more specific than that. I know places like Fishers and Carmel are too inflated. Is there any data or articles or maps someone can post. I would be very grateful. Thank you very much :)

Nice! I really appreciate the zip code gents! Now I have a location to actually begin looking. Thanks again!

Real quick, I’ve seen a few houses in that zip around $50k. They seem really clean and not really anything to do to them. 3 bed 1 bath about 800-900 sq. ft. What do you think something like that would rent for? Just trying to see if they are going to cash flow 🤙

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