Indianapolis Property great for short-term rentals

5 Replies

I have a residence with a separate apartment that I rented on Airbnb (perfect set-up). The most full year (we travel a lot) grossed over $30,000. With some slight modifications to the main house, I think it could easily be two more units that are much more profitable than the apartment. 5200 total sq ft. I'm thinking $110,000/year total income. It is in a great location just north of Broadripple. The neighborhood is quiet and has no HOA. The property is on a pond. There are 2-car and 4-car attached garages, so plenty of parking. It has been totally rehabbed.

We need to move out of state to be closer to my wife's ailing parents.

How would I go about marketing this property as a good investment potential?

How much should such a property sell for as an investment?

I am new to this forum, so any feedback would be appreciated.



I have owned a number of long-term rentals over the years and have recently been divesting myself of them in order to retire in a different state closer to my wife's ailing parents.  I am at the point where I am trying to simplify my life.  If we were staying in the area I would definitely hold onto it.  In fact, I bought the house next door and gutted and rehabbed it with the idea of doing another short-term rental there because this one far exceeded out expectations.  Then our plans changed.  Life happens.

Hi Steve,

As an investor and airbnb guy, I can say yeah they can be profitable.  I'd say keep it if you can and keep the rewards.  

While you can market a multi-family with an "income approach" and try to get a bit more resale value based on its income, realtors/buyers are not going to buy into the airbnb profitability as much from my experience. If your neighbor can do it, there has to be a reason why you are asking 20-50k more for your property vs the neibor house that can be purchased.

Also if you do look to sell it as a business, were you running it as a business?  By that I mean do you clean it yourself or have a cleaner?  Were you managing the listing bookings or having someone do that?  If you were totally hands off then its a true business (more from the Robert Kiyosaki mindset).  If you were providing free labor its less desirable as a stand alone business. 

But why not keep it and grow your portfolio?  Hope that helps. 




You might consider attending one of the monthly CIREIA meetings.  They have a buy/sell session at each meeting where you could promote your deal in front of a large room full of RE investors.  Try for more info on that. Another thought...there are some full-time STR property managers that might be able to help you market it (or may even want it themselves). Or, as others have could hang on to it and hire a local property manager to take care of all the details...and let the checks show up in your mailbox wherever you are.

As for putting a value on the property...I'm going to take a stab at it, based on what how I would view it...but I'm not really an expert in STR's, just a 13 unit landlord. Iit sounds like there are two scenarios:

SFR with a separate short-term rental unit: I would value that by using usual comps for the residence and adding $50 x the avg. monthly STR income. Typical long-term rent multipliers are more like $100 x monthly income...but I just don't think you'd get anybody to pay you that that much...hopefully someone more experienced with STR's will weigh in.

Three short-term rental units (after converting the main house): $50 x avg monthly income. But, I wonder how long you would get away with three STR's on your property in an otherwise quiet SFR neighborhood.

Good luck and congrats on your retirement!