New Investor - seek advice on B/B+ neighborhoods in Indy

4 Replies

Hi,

I am an investor from Seattle, WA and recently bought a single family home in Austin, TX in a B+ neighborhood. It seemed like a novice investment since Cash-on-Cash return is just 3%. Now, after reading through various books and listening to podcasts, I think I am in a much better space and looking at Indianapolis for my next investment opportunity. I want to invest in a 120K SFH in a B/B+ neighborhood and was wondering if this is feasible. Also, if people can point to these neighborhoods, that would be awesome. Any other advice for a newbie like me would be appreciated as well.

Thanks,

Manish

With no more info than the anticipated price of the property there is no way to answer the question.

However..........SFHs are the highest risk most difficult investment properties to produce positive cash flow anywhere.

@Manish Sharma

Hey Manish - I think that Indy probably has much better prices than Austin, but you'll probably get much more appreciation there over the long term, so don't beat yourself up.  I use the following map to check classes of addresses.  Yellow is basically B.  You might be comfortable in light green areas as well.  Also do google street view to zoom around our streets.  You can get a pretty good sense from that as well.  Let me know if I can help in any way...  

https://www.trulia.com/local/irvington-indianapoli...

An addition to the above - make sure to drive the neighborhood or have someone you trust do so for you. In any neighborhood in Indianapolis that's anything other than great, you'll have trashed, run-down blocks interspersed with streets full of beautiful homes. It's impossible to tell from a map which area any property you look at may belong to but you'll know quickly when you're there in person. I also recommend investing in multi-family properties for better cash flow. You'll have no problem finding an SFH for $120k in Indy.

To me, B/B+ would be places like Eagledale, Lawrence, Beech Grove, just outside 465 loop, etc. You should be able to pick these up for around 80k or less in good shape and can rent for 750-1000/mo.

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here