What's Indiana's 2018 Appeal?

9 Replies

A colleague of mine mentioned that he's moving to Indiana in 2018. He has an IT business out here in Silicon Valley. It's doing well, making him good money. Yet he wants to pack up and head over to the Indianapolis region.

Given housing prices here I can't blame him! But I'm left wondering, why Indiana?

Does 2018 hold promise for Indiana's economy, its housing markets, etc.? If so, how do things look out there?

Admittedly I was already curious about RE in Indiana. This spurred me to take a closer look. What are your thoughts about Indiana's 2018 outlook?

Hmmmm. That's a good question because it was 13 DEGREES BELOW ZERO in Indy the other morning and I continue to ask myself why I remain. But to answer the question simply, Indiana is affordable and dare I say... semi-comfortable living, even for those with modest means. It's half a day by car or a couple hours by plane to roughly half the country, landlord friendly and easy to start a business here amongst other things. Township and private schools are ok and the decision-making people are generally accessible when you need to get things done. The red tape isn't as burdensome as I hear it is in other places. We have a couple pro sports teams and lots of college action to enjoy. When they win.

There are some challenges to living here and it certainly has its share of problems but since that's not the subject at hand I'll save those comments for another thread.

Indianapolis and its surrounding areas are doing really well right now. A lot of businesses moving in here because the costs are cheaper than other big cities. The real estate market continues to grow, new developments still being built. There is also a ton of house flipping going on in Indy right now. With that being said, people are always looking to rent here. Indiana is a very renter friendly state and cash flow is great for investors. Feel free to hit me up if you have any particular questions @Chris Williams .

We have a property under contract in Indy right now, looking to add a second. We are also moving to Indy from New Orleans, where real estate has treated us very well. My wife got a job offer in Indy that prompted the move, Indy was not my first choice, but I’ve warmed up to it.

So from an older Millennium perspective, Indy has a lot to offer. The rent is very low relative to other MSA’s, the housing is cheap relative to wages, insurance, taxes, healthcare, costs across the board are lower. Then, factoring the employment conditions, and potential for growth Indy was a good choice, I think in a large part due to the lower cost of living.

The biggest surprise was that Indy actually had a little bit of a night life, and restaurant scene that wasn’t disappointing. As others commented above the central location allows for cheap air travel, or travel by car to the exciting places people can’t afford to live in. (Nola, Denver, Etc.)

I suppose the biggest negative is the school system, but there are alternatives available.

The other area we invest in is Illinois, the taxes are insane, so Indiana is a great choice for retires looking to maximize their retirement.

I will say that I have been really disappointed with cash flow opportunities, but I’m not the type of investor that’s ok with $100-200/door. The housing stock is very old, and I have a firm grip on Capex costs that not everyone may be considering.

Here is some of the positive news and feedback regarding the Indianapolis market. 

Map of the Indy East Promise Zone - January 2018

http://indyeast.org/about/map/

Indianapolis named second-best city for jobs in America

http://www.indystar.com/story/news/2017/09/13/indianapolis-named-second-best-city-jobs-america/661316001/

What others have said about Indianapolis.

"Indianapolis' reputation as a hotbed for tech jobs keeps growing"

- USA Today

"Indianapolis used to be the quintessential Rust Belt city. Now it’s at the center of a statewide boom in the life-sciences business.”

- Wall Street Journal

"The City of Indianapolis has evolved into a growth dynamo, setting standards of excellence for urban renewal and economic development"

- Nation's Cities Weekly

"You can share the delight...in this crossroads city for the almost breathtaking, tangible success of a revitalization program the likes of which most other older cities are lucky to get to the blueprint stage."

- Los Angeles Times

"Construction and development downtown seemed to wake the city up, and today, a thriving cultural scene mixes with Hoosier hospitality and charm."

- The New York Times

Thanks everybody. This is encouraging news. Something for me to look into further.

To you Indy folks - What about the north/northwest of the state? Are you not familiar with the area, or does it not hold the same potential in your eyes? 

You bring up a good question, Aly.  NWI is receiving MASSIVE amounts of funding from the State (check it out here: http://www.rdatransformation.com/) to boost the economy and enhance public transportation to/from Chicago.  The State is banking on Chicago's population and housing market to pick up and cause potential homeowners to drive until they can buy.  NWI has more risk long-term because you would be investing in growth potential that could bust, whereas Indy is more stable and is a safer bet that already has the standard of living desired by many.

Originally posted by @Aly Andrews :

To you Indy folks - What about the north/northwest of the state? Are you not familiar with the area, or does it not hold the same potential in your eyes? 

 Aly, I have invested both NWI & Indianapolis.  Depending on the kind of investing you do, flips, buy & hold rentals, turnkey, can help determine where you want to dive in.  Prices are up in both areas.

Larry Fried, Real Estate Agent in OR (#201211636)

@Larry Fried - Thanks for your response! I have book marked your website for future reference. I'm more interested in buy & hold/turnkey.

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