Muncie IN anyone? Need help with comps

[Tricia O'Brien]

Hello Indiana!

I need to find a realtor in Indiana who can give me comps based on the MLS on a house in Municie I'm interested in. Couldn't find comps on Zillow or Trulia, and don't think I can trust the assessed value. Any investor friendly realtors out there? Any replies would be appreciated!

[Jameson Drew]

Tricia,

I own 30 units in Muncie currently, all managed. I currently live in California.

Yes, Muncie has some problems, but nothing well out of the ordinary for mid-sized cities surrounding Indianapolis.    What Ryan posted is true, but also is true for most cities that went through the housing crash in 2009.  Muncie in 2011 is not the Muncie of today.  Mayor Tyler and the local government have done a pretty decent, albeit not perfect job handing the influx of crime and abandoned properties.

I cant really find the marketwatch article Ryan is referring to, but he makes Muncie sound like some sort of godless hell-hole.  And all of his statistics are over 5 years old.  Yes, Meth is still a problem in Muncie and the midwest in general.  Heroin use has risen as of late, but again, not unusual outside the area.  Last year Muncie was named the most affordable college town to live in by Business Insider.

That being said, I would avoid first time purchases south of Heekin Park.  Its still a rather rough area, and your rentals will take a beating.  I have a few there, but they arent stellar.  Muncie has been really pushing the revamp of downtown.  Anything along Main and Jackson are decent.  The Old West End is coming back around and I currently purchased an 8 unit for $20,000 thats making decent returns.  Of course, any college rentals west of the White River are good, but you will pay extra for them.

I go out there a few times a year and know some people that purchase from tax sales that have given me decent returns.  Yes, its a bit far from Indianapolis but more and more students from Ball State are staying in Muncie and the city is coming around.  Its not perfect, but it certainly isnt terrible.  Most of my cap rates have been around 20%, which is good.  A decent property manager will take most of the headaches away.

Let me know if you have questions.