Investing Far East Side Indianapolis

19 Replies

Hi all,

I am new to real estate investing and looking to invest in Indianapolis. I have been going out for a few months searching for properties and I am looking at a specific property on the Far East side and considering putting in an offer. Although I have driven the neighborhood during the day and it seemed okay, I'm getting some worrisome information online and my agent says the neighborhood "isn't the best but isn't the worst" and to "do my research" which I feel is a vague way of saying it's not great.

I’m okay with a low-income area but I don’t want to buy a place in a D neighborhood either. 

So what are your thoughts on Far East side rental properties in 2020? 

@Amanda Galloway I might recommend posting this in the Indiana state forum.  You'll probably get a few more local responses rather than some guy in Texas blabbing away about it. Just a thought.

Hello Amanda, i currently own 4 properties in this zip and in the last 4 years I have owned 8 total. I also have many friends that own properties there. The area has been amazing for me and my friends. Low prices and high rents. I highly recommend it! Ive been told by my former PM to stay above 38th street, but I own two below and they haven't given me any issues yet.

We have found that Indianapolis is more of "pocket" investment location - it isn't so much related to the area as it is more street-by-street. Make sure your comps are where you want them (your realtor should be able to assist with running the numbers to make sure the value is there for that neighborhood, if they haven't already). We've been finding that homes are appreciating well within the last 2-3 years on the east-side. Even if you choose to sell your rental property after some time - you should fair well there, too.

Best of luck to you!!

@Amanda Galloway people obviously make money there, but a team is definitely THE MOST IMPORTANT PART of OOS investing. We stick to the suburbs that will have appreciation, high rents, lots of demand. We like Franklin, Greenwood, New Whiteland, Shelbyville, Greenfield. You might try to stay outside the belt and consider some donut counties. Many people like the 74 and 65 corridors outside of Marion County.

@Amanda Galloway I have been investing in Indianapolis for 12 years, and I used to live in 46226 Zipcode. Most of this Zip is fine. I think it depends on what you are looking for. I don't consider this area a War Zone, but it's not A-Class either. I personally would feel comfortable investing here, that is my opinion. 

@Amanda Galloway Far East side is too large of an area to generalize. It extends from 25th St on the south to 46th St on the north and Post St on the west to N. Cumberland on the east. This area can range from low end C class to higher end B class. We've done a lot of properties in these areas. The area that you'll want to avoid is the pocket around 38th and Post. The further south you go from 38th, the better the area. If you're looking for B class properties then I would recommend looking at the areas south of 38th St. North of 38th will be mostly C class. I know this area well. I'd be happy to chat with you. If you want to DM me the address, I'll tell you what I think. Indianapolis is a good cash flow market but you need to know the neighborhoods well.

@Amanda Galloway there have been a lot of great answers here.

46226 is much too broad as some have said. Your risk tolerance is crucial here and ensuring you have a good property manager or if you are doing it yourself ensure you have boots here to handle the emergencies.

Do your homework when it comes to management here in Indy. Ensure you check references in this task.

Congrats and take that next step!

@Amanda Galloway  Excited for you to be investing in Indianapolis! As far as the east-side goes, due diligence is key in this area. Neighborhoods vary from block to block which can make it risky for OOS investors. You should have a team in place, and they should act as your boots on the ground here in Indy. I agree with you, that your broker is being vague about their opinion surrounding the property. Your broker plays a key role in vetting opportunities that meet your criteria and risk tolerance. You should be able to have full faith in them, and receive straight forward answers since they are more familiar with the area. If this is not the case with your current broker, then creating a team you can count on should be a priority. 

Good luck and congrats on getting started!

We manage lots of properties in that area of Indianapolis. Definitely a rental neighborhood, but we see lots of solid performers there too. 42nd and Post is the worse intersection of Indianapolis without a doubt and you aren’t super far away but that distance does make difference. Good luck.