Hello~ I currently live in Illinois burbs but I'm looking to potentially invest in Indiana. Wife and I both went to college at IU & Purdue respectively and looking to branch out over there. We are trying to stay closer to Illinois but we are looking for mainly b or b+ areas. Any places in mind? Terra Haute? Crown Point? Indianapolis seems pretty good but I don't know which area would be considered b, or b+
Iḿ currently under contract on a 77 unit apartment complex in Indianapolis in a neighborhood I consider to be ¨b¨ class. If this sounds like something you would be interested in getting involved with send me a message and we can discuss more details.
I wish you success in whatever you decide,
@Bill Manassero is investing in Indy and might have some good insight on submarkets to check out.
NW Indiana has great areas with very good ROIs and it's pretty close to IL. I can see IL trees from my bedroom window.
Eric - I live in Crown Point and lend to many REI's on rehab projects over there. Lot's of stuff in lake and porter counties. Merrillville, crown point, st john, valpo, Chesterton, etc.
@Adrien S. - I think where you invest is determined by your vision for what type of returns and/or investments you are after. Are you wanting to flips? Buy/Holds? Etc. Do you want to be more hands on, or sort of more passive? Many avenues to take there, and the area you invest in, is determined by your strategies, and vice versa, where you invest can determine the type/style of investing.
@Eric X. Indianapolis is an incredible market and very active [Yes, I may be a little biased].
There are many B neighborhoods but one must be careful - the areas can change drastically street by street. This is where a great team on the ground is crucial - this is true with any market you are investing remotely in.
Please feel free to call, email or PM me with any questions about Indy.
@Eric X. The best ROIs are in the C+/B areas like Hammond and Merrillville. For example, in Hammond, I spoke w an investor who just finished his 3/1. He's all-in at $48K and it will rent for $1100. New roof, new mechanicals, updated carpet/paint. Taxes are $1600. It could sell on the retail market for $80K. Merrillville is similar but entry is a little higher. ROI decreases some in Crown Point, Highland, Schererville, Dyer, Muster because the price point is higher but those are A areas and are going to experience more appreciation.
@Adrien S. when speaking of renting in Hammond, be sure to include the almost overbearing Rental Registration program that Hammond is actually fighting against the Indiana State law on. If you don't register, you will be dragged into court, pay a $500 fine (no one I have ever seen has gotten out of this) plus court costs and fees.
They also have a building department that requires, for example, electricians to be registered in HAMMOND specifically. They have a list available, but the electricians know this, and increase the cost structure. You can have your electrician get registered, but they have to attend a class, pass a test, etc given by the Hammond Building Dept.
The other thing is that Hammond has the most "Add Ons" or "Voter Approved" projects that add to your real estate taxes of any municipality in that area. It varies greatly based on the area of Hammond. Some areas of Hammond still are deemed a flood zone so your insurance is higher. Many homes have been removed thanks to work done by the hammond engineers, but still be cautious of this extra costs that can wipe out any potential cashflow if not planned for in advance.
@Dale Stevens Thank you for posting that information! I am currently looking into investing in Indiana and was looking specifically at Hammond because it's close to where my mother lives in Illinois. I am not familiar with the state laws so this was very helpful. I am looking for buy/holds and I want to be hands on. I have a few properties in Illinois but the taxes are so high. Do you have investment properties in Hammond? If so what should I look look out for to avoid costly mistakes when trying to rent it out?
hi @Omar Ruiz are you wholesaling this deal or looking to partner?
@Eric X. I apologize in advance because it will appear that I am poo poo-ing your idea... But may I ask why you are looking to do your buy and hold investing 1.5 - 2.5 hours away from your home? I assume that just b/c you and your wife went to school in the area isn't the reason why you are contemplating this. To me it seems like an unnecessary way of complicating your business. Or perhaps a "grass is greener" situation. Would love to hear your thoughts on this.
@Eric X oh man... I didn't realize when I wrote my post that you had written yours 2 months ago!!! So, how's it going? Did you buy in NWI? Hope it's going well!