Investing in Indianapolis Market

25 Replies

Hello Everyone!

Looking to invest in SFHs in the Indianapolis market and build my team. I am located about 2 1/2 hrs. north of Indy and not familiar with the local neighborhoods and looking to build new contacts.

Any recommendations from local investors, realtors, or property managers willing to further discuss would be greatly appreciated!

Thank you!!

The Indianapolis market is dynamic and really hot/cold. Every neighborhood has potential but it's street by street. Plan on visiting a couple times to get a feel for the property you're looking at. I'm investing on the east side of downtown. If you have any questions about the area send me a message! 

I'm new to BP and the REI field as a whole and am looking to get involved in the Greenwood/Indianapolis areas. I'd prefer to focus initially on cash flow to supplement current income. I have some money to get things going, but I'm still trying to figure out the best way to go about it. Everything I've read so far seems to suggest MF rentals out-perform SFHs as far as cash flow goes, but I'm not really sure if this has just been biased articles or just area-specific ones. @Mike D'Arrigo , I'd appreciate your experience in the matter, primarily with PMs and building a solid team foundation.  The team seems to be the most important factor in making all of this work.  Still learning the process.  Any pointers would be greatly appreciated!

Chris Fuhs

@Eric Clement

This may help you in deciding on a specific location to invest into within Indy.

The map shows the risk score for areas within Indy on an A to F scale.

The score is calculated by looking at eight risk indicators. 

The lower the score the riskier the area is to investors. 

Thanks @Eric Clement

At this time crime is not a factor. Reason being is that crime data is not available for all cities within the USA. In addition, the reporting standards vary wildly between agencies.

I the future I plan on possibly creating a new scoring system that does factor crime, but only for large cities that have the data-sets available.

Interesting map. It's showing the extremely popular Fountain Square area as a D and increasingly popular Bates Hendricks area as an F. However, using the data points, I suppose that could be accurate. I guess it goes back to Indy still being very much "street by street". But still interesting, none-the-less.

Yeah, I buy alot of properties in these areas.  I also live in Indy.  I'm in and out of these areas all the time.  This is not accurate.  Indianapolis is street by street in many respects, but still this info is off.  Ok, if we're pulling stats from some public record, then fine, but this is just not a reflection of these areas.  

There are also some rejuvenated small areas in Indy that have income restrictions. Now, imagine how this sways comps 2 streets over.  Reality is those comps should not be included.  

Another thing - I haven't bought in Bates Hendricks for over a year.  Not because it's a D or F area (far from it).  It's because there are so many active homes listed that have just been rehabbed.  It's saturated right now.  

There's alot more to some of this stuff than meets the eye, or the map, etc.  

I've recently seen a few maps that were way way way off.  There is some fluidity to this stuff.  2018 stats don't necessarily reflect what is going on today.  Or, I saw one last week from a so-called expert from 2017.  Great map, nice work, but fact is we're 8 months into 2019.  How many homes have sold since end of 2017, or 2018?  

@Chris Fuhs I've been active in Indianapolis for nearly 10 years and can count on one hand how many MF's we've done there. With a few exceptions, most of the MF in Indy are in old, rough areas. Personally, I would recommend sticking to single family unless you know the neighborhoods very well.

@Mike D'Arrigo thanks for the insight on the Indy MFs.  I've been looking at Christian Park, Irvington, and Emerson Heights areas for SFRs.  They seem to be decent areas for rentals from what I can tell so far.  Are there any tricks about these areas I could learn from someone that knows them better?

Wow, not sure where that map comes from but I agree with others that it is not accurate. A good percentage of those orange and red areas are actually good rental areas. If you pay attention to this map, you wouldn't invest in Indianapolis. 

A map can not tell you what a good local agent can... wink wink. I live here and invest here, Indy is block by block. But the smart investor will work with the local seasoned agent to help you make the best move$!

because you mentioned it...Concerning Christian Park.

There is a seedy bar there called Bar 52 (I think), that brings in a rough crowd. The people in the houses in the block near the bar report noise, nuisance. they say the bar patrons often leave drunk, bumping into cars on the street and littering the place up. There was also a murder there a couple weeks ago that started with a bar fight.

I know this information because I own a property there and I am monitor the neighborhood facebook page.

That said, if you go north of the park, there are some great properties. Also, there is a strong neighborhood association that is working hard to improve the area. They have successfully won grants to clean up the area along Pleasant Run Parkway and the walking trail there.

Just stay away from the bar area and you can do well there.