Indianapolis Turn Key

[Bernard Pierson]

Hi Everyone -

I am thinking of investing in the Indianapolis market. I like the lower price entry point, followed by higher than usual cap rates and rent multipliers. My goal is to do cash-flow properties, not really worried about appreciation. 

I would be an out of state investor working with a turn-key company. Other than my primary residence and out of country, this would be my first investment. Any thoughts on going with this approach? Any turn-key property you can recommend in the Indianapolis area?

I have also considered doing turn-key in my market. I would just feel more comfortable being guided in my first investment.

I know many people recommend not to do out of state, but comparing the rent multipliers in my area (south florida) with those in markets such as Indianapolis, it seems as if the difference can well pay for the property management and still leave a better return.

I am actually flying up there Monday for the day to learn more about the area and meet a few people. What do you think of the Fountain Square area in Indianapolis?

I appreciate all feedback.

Thanks

[Shawn Holsapple]

@Bernard Pierson welcome to the Mid-West!

I always tell investors to go with SFH built after 1945 and rents over $700 per month to week out a bunch of lower end properties that can [and will] turn into money pits and/or nightmares.

Ft. Sq. is very active but everything in there is about 100 years old and is still in a transitional stage [IMHO].  Of course there are PM's that specialize in this area as well.

Turn-Key; IMO these companies charge a premium - sometimes a huge market up.  I would suggest working with a good local run PM and and a wholesaler or broker that is active in the market to find you similar "turn key" asset and save yourself some unneeded expense.

I hope that helps.