Advice and Tips on the Indianapolis Market

8 Replies

Hi BP Community. I've been soaking up as much info. and advice on the site over the last 2 months in search of a good market to invest in. I've narrowed it down to Indianapolis based on the population and job growth figures, rent to price ratios and not too extreme weather. I live in CA, so this will be somewhat of a challenge. I've read nearly every post including the keyword Indianapolis and appreciate all the tips and advice everyone has shared. I have a few more questions I'd really appreciate if anyone with Indianapolis experience would share. 

1. Any recommendations for a good property manager willing to manage lower end rentals? My main concerns are integrity, good reporting and a fair price.

2. I'm told Perry and Franklin Townships are better areas to invest in, though inventory under $50k is limited. Anyone have success in Wayne and Warren Townships at a lower 20k-40k price point?

3. Any good handyman recommendations that can handle a rehab? Integrity and price being the most important factors.

4. Any general advice or tips on the Indianapolis market?

Thanks in advance for all guidance provided to all us newbies and relatively newbies. It's very much appreciated. 

@Mohammed W.  

Indianapolis is a very good cash flow market, however, based on my experience in Indy, I think your criteria is seriously flawed, especially for an out of state investor. Buying $20-40K properties will be a guaranteed disaster. You're not going to find properties at this price that will perform well. They will be in rough areas of Center township. You can do very well in the right areas of Warren and Lawrence but you have to know the areas well. They vary neighborhood to neighborhood and sometimes street to street. Most of our turn key properties are in Warren and Lawrence and do well.

Inventory under $50K in Perry and Franklin is not just limited, it doesn't exist. These are mostly owner occupied areas at much higher prices. Keep in mind that prices in Indianapolis have gone up nearly 10% for the last 2 years.

My advice is to stay away for the cheap stuff. There's not a property manager in the world that can make them perform. Feel free to contact me if you'd like more input.

Just sent a PM.   I think a phone call would be better to answer some of these questions!  

Indy is a great choice.   Smart move.  

from what I know of the Indianapolis market I would suggest looking to fs houses for properties and property management. Just my two cents.

Welcome to Indiana & BP @Mohammed W.  !

All good points above.  

A good PM is about as hard to find as a contractor/handy man!

Things to stay away from: Built before 1945, rents less than $700 & duplexes.  These are just general "rules of thumb" but I've found that just doing these 3 simple things will cut down on an out of State [and local] investors headaches.

Feel free to email or PM for any additional help.

@Mike D'Arrigo  Thanks Mike. I suspect $20k-$40k could be a bad mistake. I'll definitely be cautious and probably leave it as a down the road consideration. I'll reach out to you as I get closer to puling the trigger. Thanks for all your input. It carries a lot of weight coming from someone with experience. 

@Ryan Mullin  I appreciate it Ryan, I'll probably be reaching out to you soon. I've briefly looked at your site and will have my business partner look over it as well.

@Davis Rollings Thanks Davis for the recommendation and the help and confidence booster from your PM. 

@Shawn Holsapple  Thanks Shawn, good things to keep in mind. Is older than 1945 just a general age to avoid or is that a specific year whereby something changed i.e. knob and tube wiring switched to the current standard? 

@Mohammed W.  

You have more potential foundation issues on homes built before 1945. A lot have stone foundations whereas new homes are often built on slabs.

Originally posted by @Mohammed W.:

@Shawn Holsapple Thanks Shawn, good things to keep in mind. Is older than 1945 just a general age to avoid or is that a specific year whereby something changed i.e. knob and tube wiring switched to the current standard? 

 Everything built in the 50's and newer is a different type of construction and is so much easier to maintain.  From wiring to plumbing to foundations.

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