Investor · Valparaiso, IN · Member since 2014 · 175 posts · 43 votes
Looking for anyone that would be interested in homes already rented in Gary (or Northwest Indiana). Rent between 650 and 800 a month, cost between 25k & 30k.
Rental Property Investor · Gary, IN · Member since 2017 · 35 posts · 32 votes
5y
@Dale Stevens@Jay McAllister@Scott Steffek@Mike York Bringing this thread back to life for a 7th year. Gary values and rents have risen significantly the past couple years. The average rental I'm finding is a 3/1, 700-1000 sqft built in the 1950s, purchase price 55k to 80k, rents 750-1100. Cashflow $250+ per door, COC 15-20% assuming 20-25% of gross rents go to capex, vacancy, and maintenance. April 2021 is a weird time in real estate nation wide as the Fed fights to keep rates low, increasing buyers' buying power, forcing up retail home prices. Gary is no exception. A decent percentage of the MLS inventory in Gary is now 3 to 4 bedroom homes listed over $180,000. Yes you heard that right. $180,000. The ~$30k "retail" homes of a few years ago are now ~$75k. Right now especially, it's getting harder to find a rent ready deal on the MLS. I think a lot of people are recognizing the opportunity to sell, but it's just not enough inventory to keep up with demand. I believe a large portion of the retail inventory is going to people who work in Chicago, but want a bigger, nicer place to live with a yard, a garage, their kids, their pets, and a reasonable commute to the city.
Other Gary news, the California tech company Akyumen Industries has purchased 27 acres of land in Gary to build its new headquarters and 150,000 sqft manufacturing facility. It will be the FIRST IN THE USA to manufacture 5G smartphones and tablets. This will create 2000 jobs over the next 3 to 5 years.
UPS has begun express air shipment operations into the Gary airport, operating on a long term lease signed in May of 2020 providing UPS with 15,000 sqft of office space and 150,000 sqft ramp for aircraft operations.
The new $300M Hard Rock Casino in Gary will open to the public on May 14, 2021. A 200 room Hard Rock Hotel is in progress.
Remember Gary has 7 miles of lake front real estate along Lake Michigan, a robust rail system, and affordable land and buildings for additional businesses which may become attracted to the growth in the area.
Don't get me wrong. Gary has a long way to go. But I believe it can continue to grow and get better just as it has done the last few years. Every family that I can provide quality housing for will not have to worry about slum-lording owners anymore. 10 houses doesn't make much of a dent, but 20, 50, 100 now you're talking about positive change in a community. Multiply that by a bunch of good people working together and imagine the possibilities. I am all in on Gary. I truly believe we can help change Gary for the better as investors with good values and practices.
Homeowner · Hobart, IN · Member since 2014 · 6 posts · 0 votes
11y
@Sharad M
My wife and I are looking to invest in our first rental and the prices in Gary are appealing. I see that you invest in the Lake county area and seem to be doing quite well. What are your thoughts on rentals in Gary vs Lake Station and other surrounding areas?
Prices in Gary are definitely appealing, but it's a tough market for a newbie investor. You will need to be VERY hands on landlord and have an exceptional tenant to make it work. I would definitely go with Lake Station over Gary, but be careful buying in Lake Station, because that area is notorious for having some houses with foundation issues.
Let me know if there is anything else I can help with.
Investor · Downers Grove, IL · Member since 2015 · 353 posts · 213 votes
11y
This is an older thread but wanted to bring back. 25-30k in many areas of Gary is RETAIL.
I will say this, Gary is a city of probably just over 100k. Not many people there return their census applications as they don't care so we will say over 100k. This means there are good areas and bad areas. I wouldn't blanket everyone based on the good areas or worse the bad areas.
The numbers are exciting, but as has been mentioned you better know your stuff, because it can be fun. Luckily for me, I have teamed up with people that have been in the area for decades.
Is this still true or you feel conditions are changing now?
I am not sure how active are you in REI since you have taken up other business.
Let me know if we can talk sometime ?
Thanks
Sumeet
Hi Sumeet, still very rough market. Though it is getting slightly better from I hear from other investors. I have stayed away from Gary because there is so much crap in that area that it's not worth wasting time when other surrounding cities offer good ROI.
Property Manager · Griffith, IN · Member since 2015 · 1k+ posts · 913 votes
6y
@Sumeet Gangwal I would not buy in Gary as an out of state investor. If you're buying it from a local "turn-key" company or local investor, you're likely over paying for a property in a POS city. Gary is the type of area you need to know block by block and hood by hood. You need a great management company or be completely hands on. It's appealing because the entry point is low and rents are high relative to purchase price. Properties can experience great cash flow but little appreciation. At this point, it's still speculation the city will appreciate and is a huge gamble. One bad tenant and year of cash flow is gone. Good luck.
Rental Property Investor · Gary, IN · Member since 2017 · 35 posts · 32 votes
5y
@Dale Stevens@Jay McAllister@Scott Steffek@Mike York Bringing this thread back to life for a 7th year. Gary values and rents have risen significantly the past couple years. The average rental I'm finding is a 3/1, 700-1000 sqft built in the 1950s, purchase price 55k to 80k, rents 750-1100. Cashflow $250+ per door, COC 15-20% assuming 20-25% of gross rents go to capex, vacancy, and maintenance. April 2021 is a weird time in real estate nation wide as the Fed fights to keep rates low, increasing buyers' buying power, forcing up retail home prices. Gary is no exception. A decent percentage of the MLS inventory in Gary is now 3 to 4 bedroom homes listed over $180,000. Yes you heard that right. $180,000. The ~$30k "retail" homes of a few years ago are now ~$75k. Right now especially, it's getting harder to find a rent ready deal on the MLS. I think a lot of people are recognizing the opportunity to sell, but it's just not enough inventory to keep up with demand. I believe a large portion of the retail inventory is going to people who work in Chicago, but want a bigger, nicer place to live with a yard, a garage, their kids, their pets, and a reasonable commute to the city.
Other Gary news, the California tech company Akyumen Industries has purchased 27 acres of land in Gary to build its new headquarters and 150,000 sqft manufacturing facility. It will be the FIRST IN THE USA to manufacture 5G smartphones and tablets. This will create 2000 jobs over the next 3 to 5 years.
UPS has begun express air shipment operations into the Gary airport, operating on a long term lease signed in May of 2020 providing UPS with 15,000 sqft of office space and 150,000 sqft ramp for aircraft operations.
The new $300M Hard Rock Casino in Gary will open to the public on May 14, 2021. A 200 room Hard Rock Hotel is in progress.
Remember Gary has 7 miles of lake front real estate along Lake Michigan, a robust rail system, and affordable land and buildings for additional businesses which may become attracted to the growth in the area.
Don't get me wrong. Gary has a long way to go. But I believe it can continue to grow and get better just as it has done the last few years. Every family that I can provide quality housing for will not have to worry about slum-lording owners anymore. 10 houses doesn't make much of a dent, but 20, 50, 100 now you're talking about positive change in a community. Multiply that by a bunch of good people working together and imagine the possibilities. I am all in on Gary. I truly believe we can help change Gary for the better as investors with good values and practices.
Investor · Merrillville, IN · Member since 2009 · 252 posts · 104 votes
5y
Hey @Caleb Teachout, I read your post and couldn’t have said it better myself. I’m starting to see what’s happening in Gary and always said to myself that it’s just a matter of time before someone gets wind of this city and starts taking chances on rebuilding it. Now’s the time. I live near Gary and will be starting to further research what’s going on and pick up some property there. Let me know if you want to connect!!!