What has the Indianapolis Market done for you?

Question

Good Afternoon,

I am a new investor here in Indianapolis looking at buying my first multi family property. I recently saw a house on Carrollton Ave, which is in between 10th and 38th and college, which appears to be an area that is being revitalized. What do you guys think of this area, and what would you suggest for someone new in the Indianapolis Market? Furthermore, if anyone has any suggestions on good Buy-Brokers, or general advice relating to the Indianapolis market, please let me know. Thanks for any and all responses!

Jeb Brilliant · Answer

@Brad Swarm Your logic for going MF seems very solid. I know it's not as easy but if you can find a 3-4plex I would suggest going that route. Either way, MF is great. One tip, don't try to break even because you are living for free. Make money on every deal you do. Some people going into MF, pick up a duplex and then only break even, maybe they feel guilty and that they don't deserve to make money from the property they're living in but what ever the deal is, make money on it every month.

Brad Swarm · Answer

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Brad Swarm · Answer

The main reason I'm focusing on multi family housing is because there tends to be more leeway for vacancy and I also need to house hack this first property as I am currently still living at home with the family. I have worked to save for this first property, and after recently finishing the book, "Investing in Duplexes, Triplexes and Quads" by Larry Loftis I decided that would be a good initial investment. However, that isn't to say if I found a lucrative single family home that I wouldn't put in an offer, but I've tended to focus more on multi families. I will go ahead and send you a request to connect and would be happy to talk with you in greater detail and take into account any wisdom you are willing to offer.

Matthew Schroeder · Answer

In Indianapolis, between 10th and 38th (on the same street), you've gone through at least 3-4 very different neighborhoods.

If you aren't convinced or simply don't believe that it is possible, drive it.  I have!

I have seen listings on that stretch of Carrollton north of $120k (rare, but they exist) and less than $30k.

Rusty Scott · Answer

That is a very wide area you are talking about, but most of what you are seeing is Mapleton Fall Creek, I assume. It's an area trending in the right direction, but still a ways to go.

My question to you, being your first rental, why are you set on a duplex? I generally advise against them here in Indy, outside of a few higher priced/higher demand locations. You'll find the tenant pool to be quite challenging.

I'd be happy to share some stories with you!

Erin Donlan · Answer

Hi @Brad Swarm! The area you're talking about is a pretty wide swath of downtown, so it's hard to generalize. I know there's revitization going on in he Mapleton-Fall Creek area but it's still very street by street, so you really have to be sure of where the action is at. It doesn't make sense to buy in an area that's been completely untouched. I know someone has to be the first on the street, but I wouldn't suggest it as your first property.

I'm happy to give you some more information about the house you're looking at if given the address. I'm an agent and investor in the area and happy to help out if I can!

Edward Rhoads · Answer

A lot of people love that area and the values are going up fast but too many duplexes for me to want in at that price point.  Too high risk but if you have a higher risk tolerance than me it can be good just make sure you are fire proof.

What has the Indianapolis Market done for you?

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