RULES WHEN INVESTING IN INDIANAPOLIS

[Jason Malabute]

I heard that you should be following the rules below when investing in Indianapolis:

High Income is good for Fix and Flip but not Cash Flow.

Rule 1: Household Median Income should be between 40-70K. As you go higher, you'll see a decline in cash flow.

Rule 2: Stay away from areas above 10-20% poverty rate.

Rule 3: Go into areas where Median Contract Rent is between $700 and $1100

Rule 4: You don't want the Unemployment to be higher than the city overall by more than 2%.

1. how true are these "rules"?

2. Why are following these rules so closely related to success in investing in Indianapolis?

3. How strict should I be in following these rules when investing in Indianapolis?

Thanks,

Jason