Since my local market started getting expensive so I started to look for opportunities out of state, mainly in mid-west. I was looking through southern Indiana on Zillow and then Evansville came on my radar (duh!). From the look of it it seems the Evansville area is a gold mine for the buy and hold strategy. I was mainly searching for sub-60K properties and a lot of them can be rented for 1.5%+. Is that for real? Or are there a lot of issues with these types of properties (war zone? vacancy? hard to collect rent)? What do your numbers look like in general?
Anyway, I'm looking to connect with agents with local knowledge who could educate me about the Evansville market and send me leads. I'm ready to dive in!
@Minji Wu hi, and welcome to investing in in Evansville! yes, 1.5% rentals are possible in this area, and they can be done for sub $60,000. However, generally speaking those will be C-Class single families but it all depends on your goals and objectives. Happy to talk, and recommend my real estate agent as well.
Thank you for your reply @Andrew Fallwell ! What would you say are the difficulties of managing a C- property? Difficult to collect rent? Hard to find tenant? High turn over rate?
Is 1.5%+ attainable for higher value properties? I'm not particularly fixated on single family although they'd incur lower cost as I don't have to pay a lot of utilities. Is multi-family a viable option in the Evansville area? What are the typical numbers (purchase price, rent to value percentage)?
If you don't mind, can you PM me some of your recommended agents? Thanks!
@Ryan Peach is a guy you'll want to chat with.
Evansville has properties running the gamut- ranging from $20k-$300 (and higher) that investors could consider. You can find nice properties that hit the 1% rule often enough and have properties that crush the 1% rule that I wouldn't ever touch without being present in the area.
Some people have made lots of money and positive impacts in communities investing in D class areas, but it's not something I would ever advise to someone that is
1. Investing out of state
2. Investing for the first time
3. Not fully established with a good team.
Evansville is a strong, high-yield market... which sounds it sounds like you are looking for. Good luck in your search.
@Bo Goebel , thank you, these are very helpful! I guess what I need is someone who really understands the market to steer me clear from properties whose numbers look good on paper.
@Minji Wu I am a broker and investor in Evansville. Are you looking at SFR's or MF? PM me.