Property Manager · Indianapolis, IN · Member since 2010 · 1k+ posts · 1k+ votes
6y
@Roni Karpman
Mars Hill can be spotty. Bean creek has seen some up tick as of late, but still very working class and if those were the two places I had to pick I’d go with. I’d recommend a solid realtor or wholesaler. I would not recommend you make decisions based on what’s in your budget. Super cheap houses have the most expensive problems typically. 90k is enough to get a solid place though. A nice little 2 bed for 90k that rents for 800-1000 is a great first rental.
Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
6y
@Roni Karpman it all depends on your price point and class of property you're looking for. It's hard to pinpoint a general area because Indianapolis can vary block to block. As @Josh C. Mars Hill can be spotty like a lot of neighborhoods. One of the things that I like to do is what I call an online virtual tour where we look at a map of the city and I can point out the areas that we like and the areas that we don't. Let me know if that's something you are interested in.
First a property manager recommendation - Indianapolis Property Management Group. AMAZING at what they do.
Next, Locations - I like Brownsburg, Avon, Plainfield. There are going to be 150-170k level homes. Worth it paying a little more: - Minimal extra on mortgage, 80% of this is financed anyway, plus more mortgage means more equity paydown - Less problems as far as area crime - Excellent schools - Longer-term tenants (you save a LOT by not doing a turnover every year and having a 3-year tenant) - Better appreciation (vs. nonexistent in your c/c- classes)
Don't be penny wise and pound-foolish, i.e. don't cling to the C class for another $50-75/month in rent while you leave a $5k annual benefit off the table.
Indianapolis is very tricky. I do suggest you get in touch with a good property management group that knows the area well but Northside of Indy is going to be your safest and most expensive. Fountain Square is another good place.
@Dave Woolwine honestly just start cold calling places. If you are looking for business loans there are plenty of good banks but right now multifamily loans are getting tougher and tougher. I probably talked to 10+ banks before settling with 1 on my most recent investment. Rates and requirements are changing a lot around here.
Rental Property Investor · Indianapolis, IN · Member since 2016 · 559 posts · 463 votes
6y
@Roni Karpman and everyone else exploring the thread that don't have boot on the ground, welcome to Indy!
1st in pass-through highways
1st in shortest distance to median center of U.S. population
1st in rail tons of primary metals originated & terminated
1st largest producer of truck trailers
2nd largest FedEx air hub worldwide Poised to directly benefit from the mega-ecom trend only hastened by Covid
Speaking from experience, property management is a game of pennies in most cases which is why BAM only focuses on deals where we can get economies of scale nowadays (mostly our own syndicated deals).
Investor · AZ · Member since 2019 · 57 posts · 22 votes
6y
OOS Investor here also looking at the Indy market. Agree with everything that’s been said here. Neighborhoods can be tricky in Indy. It’s really street by street especially in the near east side and c/c- areas. Search on BP for Indianapolis and you should be able to find Sterling White’s neighborhood breakdown. A couple years old but still very relevant from what I hear. Getting an agent that also invests is key as well as strong property management. They should be able to steer you away from the war zones. PM me if you want to chat more about your search.
Rental Property Investor · Santa Clarita, CA · Member since 2016 · 11 posts · 1 vote
6y
@Percy Matsunaga, I'd highly recommend Vue Property Group (Elisha Drake). She has over 20 years property management experience, and is very good at what she does. You'd be surprised at how hard it is to find a PM with great communication. E.g. I had a PM where I waited 4 days for an email requesting a copy of a tenant lease. Since her background is in large commercial property management (prior to her starting up her own shop), she has a very professional work ethic which comes through in her communication (timely, detailed), and follow-through.
I have a 2 bedroom SFH in Christian Park that has a rental history of 750-800 per month over the last 2 years. We will be selling it soon, hopefully in September. However we are waiting for our current tenants to find a new place. When we leased to them I promised I would not list it for sale while they are still living there.
Anyway, other than being a 2 bedroom (not 3), it may be the type of property you are looking for. Overall, I have been happy with owning in Christian Park. Working class, friendly neighbors and a neighborhood association (not HOA) of owners that are very involved in making it a nice community to live.
Rental Property Investor · Richmond, VA · Member since 2019 · 53 posts · 18 votes
6y
@Nick Giulioni what do you think about just outside of Garfield Park? I just had an offer accepted on a duplex around Emma Donnan Middle School. Seems like a mid to low C neighborhood, but has potential for appreciation with it being sandwiched between Garfield Park and Indianapolis University.
@Nick Giulioni what do you think about just outside of Garfield Park? I just had an offer accepted on a duplex around Emma Donnan Middle School. Seems like a mid to low C neighborhood, but has potential for appreciation with it being sandwiched between Garfield Park and Indianapolis University.
I own a house in that area. Not my favorite - but not terrible. Let me know if you need another set of eyes.
Hey Ronnie. I have a property in Christian Park that is currently rented. It may meet your requirements, but is 2 bedroom and little smaller than what you desire. But it is rented at $800/month. Message me if you want information. It is not listed. But will be in the near future.
North Richland Hills, TX · Member since 2019 · 156 posts · 80 votes
5y
@Mike D'Arrigo What you have offered sounds like something that will be amazing for me since I'm just stating to invest Indy. I have a rental property in Pittsburgh PA and it is so difficult to get to know a new market... It took me a year to knoe PGH pretty good... So if I can get some help it will be highly appreciated! Thank you in advance!
@Mike D'Arrigo What you have offered sounds like something that will be amazing for me since I'm just stating to invest Indy. I have a rental property in Pittsburgh PA and it is so difficult to get to know a new market... It took me a year to knoe PGH pretty good... So if I can get some help it will be highly appreciated! Thank you in advance!
Rental Property Investor · Indianapolis, IN · Member since 2016 · 32 posts · 17 votes
5y
I wont be able to add much, it seems you have a good amount of advice. I will only re-iterate what you know. Indy is VERY neighborhood specific. I've seen a few OOS investors get snake bit from buying a great property at a low price and see the money from a spreadsheet and think they cant lose. Indy has areas that see vacancy rates over 20%. I dont know of any rental that works with a vacancy of 20% or a tenant who stops paying. The location is key and the property is secondary but also important. IMO for OOS investors who aren't able to see the property in person, meet with tenants and deal with issues directly you're at a MAJOR disadvantage. Subsequently, I would suggest you stick with better areas, better properties. Brownsburg was mentioned and I'd agree with that sentiment. Better areas are more expensive, but the risk is MUCH lower. Just dont be fooled by metrics, many areas wont see a 5-8% vacancy or 10% maintenance cost.