Hi guys! I'm a new investor and I'm currently looking in the Fountain square/Bates-Hendricks/Garfield Park neighborhoods. There are cheaper properties right outside of those neighborhoods, mainly to the south of Fountain Square and directly West of Bates-Hendricks. Would you recommend buying in these areas? Does anyone have an idea about the rental market (pricing, vacancy rates,etc)? I'd love to hear your thoughts :) -Dierdre
Hi Dierdre, I'm interested to hear some responses on your questions as well. I hope you don't mind me tagging along and following your post. Based on my reading in the forum so far, I wonder if Indy experts like @Ryan Mullin or @Shawn Holsapple can chip in? Not sure how the tagging works. But I'm gonna try :)
Yes.. there are indeed cheaper properties just south of Fountain Square. Its really hit or miss in that area though. Specifically, around Minnesota st there are some really dicey sections. I'm personally not scared of anything north of Minnesota if the price is right. ..IF the price is right. There are no "high comps" like the other surrounding areas of Fountain Square, so you just have to be careful not to overpay. Its only cash flow at this point.. very few home owners.. no retail flips or development yet. Some streets in "South Square" we have done really well with raising rents and finding over qualified (approved by @Ashley Mullin ) tenants. Other streets are still primarily owned and managed by slumlord type groups that don't understand the rental market and demand for housing close to fs. A lot of this area is trading sub 40k and right at 40k so this falls into and asset class that BP in general is not in favor of. - Mainly in terms of out of towners. I'm personally really in favor of this area. My wife and I even bought one south of Minnesota. 1600 block of Iowa. Good block surrounded by some "challenged areas". Bought it from @Brett Snodgrass for around 20k. Put another 10 or 15k into rehab. 35k all in. 2 bedroom with garage. Central air, fenced in yard. If we rent it on the lower end of the spectrum, say 550 a month, it will stay rented forever. Another example is one that we sold turnkey on the 1500 block of spruce. Slab foundation was built in 2008, market crashed and house was never finished. We buy it in 2015, finish the house (basically a new build) very simple but modern 900 sq ft. ranch, vaulted ceilings, open concept central air, nice high end rental grade finishes like ceramic tile floor. Sold in the mid 70's. Rented for 950/month (World record for house with no garage in south square). I will attach some photos of that one. Turned out really cool.
Thank for the reference and glad that house is working out for you.
We sell a lot of homes in these areas and love seeing the homes remodeled by our investor clients. Great job on the house above Ryan and Ashley.