Lender · Abilene, TX · Member since 2019 · 50 posts · 24 votes
I found two nice rental properties in Evansville, IN, south from the University of Evansville. The properties already produce very good cashflow, so I'm inclined to buy them. However, when I look at the stats, I see that the population of the town is slowly shrinking (about 0.5%/year since 1960s). Question to the people familiar with the area: should I be concerned and pass on the opportunities there? Do you see any reason for the trend to change (say, with aging population, hence, with more jobs for the local hospitals) or to accelerate?
Rental Property Investor · Evansville, IN · Member since 2016 · 10 posts · 11 votes
6y
@Tigran Kalaydzhyan welcome to Evansville and not knowing the streets the houses are on you can definitely expect to keep the properties rented. Evansville is a great market for the beginners to the pros as it is truly a renters market. I personally do not worry about the decline it has seen as the city is back to thriving from opening a new medical school soon to different projects the city has going on. Definitely safe to say that depending where the houses are located you should see a nice return!
Rental Property Investor · Nashville, TN · Member since 2017 · 108 posts · 66 votes
6y
@Tigran Kalaydzhyan Evansville is one of the two markets that I am actively investing in. You historically see a very stable (or slightly declining) population, but that is only one piece of information. When looking holistically, Evansville is a high-yield (cashflow) market that you can build a great team and find some great opportunities in. (The people are the best part!)
Rental Property Investor · Fishers, IN · Member since 2016 · 335 posts · 470 votes
6y
Tigran,
I would agree with the others who've already commented that Evansville is a great market for rentals. Its one of two markets I'm investing in currently. The stagnant population was a concern of mine prior to investing and still is in the back of my mind somewhat. However, the community was very dependent on the manufacturing sector for jobs. As technology and automation have replaced many of those jobs, Evansville has remained relevant by shifting its economy more into healthcare and education. There are a number of revitalization projects underway downtown and I'm hopeful that the long-term prospects are bright. In the meantime, you can enjoy 2% rule deals.
I'd recommend getting very familiar with the map of the city and the property values. Its very street by street. You can literally drive 2 blocks and the landscape will change from owner-occupied properties with clear pride in ownership, to run down C class rentals. Be cautious when pulling comps. I personally like foreclosures, auctions, vacants, etc., where I can add value through rehab (with the idea of BRRRRing) to mitigate some of the risk of buying high. Just an FYI, there are a few older investors who are selling a lot of their properties to simplify their portfolios. Some deals, but be careful of paying for what looks like turnkey, but actually has a lot of deferred Cap-Ex.
Question from someone outside the market: how is the MFH market there. Say from 4-12 unit range? Thanks a ton
You'd be into C class properties with rents of $450ish for 1/1s (tenant paid utilities) or $600 for landlord paid utilities. Budget for a higher than average expense ratios in your pro forma numbers.
Investor · Jupiter, FL · Member since 2019 · 54 posts · 20 votes
6y
Hey guys! I’ve been keeping an eye on Evansville real estate property for a couple months and I’m real interested in purchasing small multi-family properties. Does anyone know or have a map of Evansville with street to street on class A B C?
How’s finding a good contractor and property management in Evansville?
Rental Property Investor · Newburgh, IN · Member since 2014 · 95 posts · 15 votes
6y
@Kevin Sabatino I've been very pleased with ERS Management in Evansville. They can assist with tenant placement and ongoing management of rental property and recently did a rehab for me that I was very pleased with.
Rental Property Investor · Indianapolis, IN · Member since 2016 · 559 posts · 463 votes
6y
You're looking at the wrong statistics. Overall Vanderburgh County and greater Evansville are increasing... not the small city limits. Great up and coming market!
We (and our investor partners) acquired a solid A- 158 unit property there last year. Couldn't be happier.
Lender · Abilene, TX · Member since 2019 · 50 posts · 24 votes
6y
Thanks for all the replies! I was thinking about the population trends from the point of view of the house prices. However, when buying houses with leverage and paying the mortgage/expenses fully with the rental income, one would suffer a loss in the principal (down payment) only if the prices drop by, say 75-80% (depending on the mortgage), which is a crazy unrealistic thing to happen. So, I'm fine with that idea for now.
Rental Property Investor · Vancouver, BC · Member since 2020 · 57 posts · 25 votes
6y
@Tigran Kalaydzhyan where do you look for your stats? I'm generally jumping on bestplaces.net and it shows a small increase for Evansville and area since 2010.
Rental Property Investor · Vancouver, BC · Member since 2020 · 57 posts · 25 votes
6y
@Tigran Kalaydzhyan are you looking at the city numbers or metro? I normally put more stock in the metro numbers because in a lot of places there has been a population shift from downtown to the suburbs but the community overall is just as strong. The metro Evansville area shows growth versus 10 years ago, although the last few years have seen very slight declines - a few hundred people each year. Here's the URL for the site I normally use. https://www.bestplaces.net/metro/indiana/evansville There's not really a right or wrong way to go about things - I would say strong growth is ideal but as long as a community isn't shrinking I feel comfortable investing there.
Paramus, NJ · Member since 2014 · 20 posts · 3 votes
5y
Hello, we own a mobile home park in Evansville and have investor opportunities to make a passive double digit return. If interested, I can email you more details. Please let me know. Thank you, Guido
Rental Property Investor · Orange County, CA · Member since 2020 · 19 posts · 7 votes
5y
Thanks for the good information in this post. Does anyone have any maps that provide a description of the various types of neighborhoods in the Evansville area? I have been looking at bestplaces.net and also the regional stats referenced in this post. Thanks much for any information you are able to share!