HELP! Indy SFRs Have Been Vacant for Months...
Hello Everyone...I have been struggling with finding tenants for my last two SFRs in Indy and would love to get some advice from people who are experienced in Indy rental market. Any help is greatly appreciated. I hope my experience may also help other investors who are interested in or have just started in Indy buy and hold market.
I am a newer out of state investor. I started from Indianapolis buy and hold market and have closed 3 SFRs there since December, 2015 (the other 3 SFR transactions fell through for various reasons). I was planning to purchase at least 7 more by end of 2016, but because of the challenges I have been facing to find tenants for my 2nd and 3rd SFR, I have decided to slow down my pace or change my strategy until all my properties have been rented out.
The 1st SFR was rented out easily because my property manager happened to have a tenant that wanted to move to a larger rental quick. The 2nd one was closed in the beginning of January, the 3rd one was closed at the end of April; both have been vacant till now.
The addresses for my 2nd and 3rd properties are:
5405 E 21st St, 46218 (750 sf, 2 bed 1 bath with basement, central heat, no air-conditioning, built in 1953)
2401 N Sheridan Ave, 46219 (1173 sf, 4 bed 1 bath, no basement, central heat/air, built in 1949)
Both properties are in very good shape, all new paint and flooring, both have double-pane windows, 2nd property has brand new exterior paint as well. 2nd one is listed for $675/month, 3rd one is listed for $700/month.
I tried working with section 8 through my PM on my 2nd property since the beginning of March and have found tenants twice, but the inspection and paper work with section 8 are extremely slow, so both tenants went for different properties. We are marketing for regular tenants now.
I used a different PM for my 3rd property. After rehabs were done at the beginning of June, I listed it for $750 and lowered to $700 at the beginning of July. I asked my PM why there are still no qualified applicants for the 3rd property after rent was lowered, he said there are many rentals on market, but for a property with reasonable rent, good shape and 4 bedrooms, I can't think of why nobody wants to rent it other than 3 applicants that had eviction or criminal records (their applications were rejected).
I have a full time job in California; even though I can fly to Indy if needed (I am a remote employee), I feel quite helpless when things like this happen. Please help....