I am looking at purchasing a fully rehabbed house 1316 w street 46208 Indianapolis for my first rental. Is this a war zone
or a D neighborhood? Should I move on and look at other neighborhoods if so which ones?
Not a war zone. Lower income for sure, but not a war zone. I personally don't invest there but people do and do alright. It's all about your team and how the rehabs was done.
Thanks Josh but can you elaborate why you wouldn't invest there and maybe some other areas I should investigate?
Damian feel free to PM me and we can chat.
@Damian Robinson Is your address missing something, like the street name?
I know these were posted months ago. Indianapolis grows and seems to be big on development more than most small cities. Many properties can be bought at a bargain. Went to school there and keep an eye on there. Wish I could buy some notes there. If you are thinking about investing there, there are a lot of good areas.
@Damian Robinson there are some investments that are better left to locals who self manage. This could be one of them. Do your due diligence on this.
I have to disagree with your statement that "many properties can be bought at a bargain". This is simply not true, unless you're buying in the hood.
Indianapolis is a sellers market now and has been for awhile. Most of what people are buying is at the top of the market and they will have small margins to work with. The days of buying at $.30 to $.70 on the dollar are gone with the exception of a few deals and I mean a few.
Now I will agree with you on the note end of things. There you should be able to get bargain deals.
I'm in Indianapolis. There are still good deals. If you can get a great deal in an A area - that's great - Do it! There are still deals on the fringes of these A & B areas. Neighborhoods get hot , they begin to gentrify. C areas are transformed into B areas. There are many good deals happening. Just avoid the D areas and be calculated about the Cs. Need to understand what streets have heavy rehab going on. Which one's are next and which ones are likely to take a long time to develop. Even understand which ones are unlikely to happen at all. Overall, there are still some great opportunities. I'm in the process of buying at minimum of 5 right now.
I agree with @Ben Riechmann . Indianapolis is still a good cash flow market but inventory is very low. Properties are being priced consistent with the location and condition. You can find a lot of distressed properties in the hood for very low prices but I wouldn't call them a bargain. We focus on at least C class or better neighborhoods with rents of a minimum of $750 in the suburbs. As an out of state investor that can't be hands on, I recommend staying away from lower end areas. You'll typically have a lot of tenant challenges not to mention that you're maintenance and CAP Ex expenses will be a much higher percent of your gross income due to the fact that it costs as much to fix a leaky faucet or replace a furnace on a property renting for $900 as it does on one renting for $600. The numbers just don't work.
I actually own a rental property in 46208. No, it is not a war zone. I would classify my neighborhood as blue collar, lower working class. My property in this zip on Barnes Avenue is a SFH, 2B/1B and it rents for 600 per month. The tenant who is in it now is a single mom with little kids. The street is currently experiencing a slow turn around of renovation so it is an up and coming area, although more slower than other popular areas in Indy. I work with a solid PM who has a good rep in the city so if you need references, let me know. I personally like the location b/c of the accessibility, close to the children's museum and my other properties around the city. (but just my preference) Hope this was helpful. Best wishes.
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