INVESTINGING IN INDIANAPOLIS

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Mike D'ArrigoPro Member
Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
4y

@Shane Rojas Indianapolis is a strong cash flow market but you really have to know the areas well and do your due diligence. Indy can vary block to block and even street to street. My biggest piece of advice is to buy the highest asset class you can afford and do not buy cheap properties in inner city, urban core areas. Stick with upper C class and above neighborhoods. I would also avoid multi families. Most are in old rough neighborhoods and with very few exceptions, do not perform well. We've been active in Indy for over 10 years. I'd be happy to share share my insights and help if I can.

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  • Colton Hahn
    Specialist · Member since 2021 · 322 posts · 273 votes
    4y

    Hey Shane,

    We invest exclusively in the midwest and we have a pretty big focus on the Indianapolis region. Would love to have a conversation with you about that here or in DMs. It is a great market with some great value to be had 

    0Reply
  • Mike D'ArrigoPro Member
    Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
    4y

    @Shane Rojas Indianapolis is a strong cash flow market but you really have to know the areas well and do your due diligence. Indy can vary block to block and even street to street. My biggest piece of advice is to buy the highest asset class you can afford and do not buy cheap properties in inner city, urban core areas. Stick with upper C class and above neighborhoods. I would also avoid multi families. Most are in old rough neighborhoods and with very few exceptions, do not perform well. We've been active in Indy for over 10 years. I'd be happy to share share my insights and help if I can.

    4Reply
  • Stephen Barton
    Real Estate Consultant · Indianapolis, IN · Member since 2014 · 322 posts · 238 votes
    4y

    Hi @Shane Rojas! I have a few tips I can offer but @Mike D'Arrigo pretty much nailed it with his reply. Indianapolis is an amazing market but there are some areas to avoid. Just because it is a deal financially does not mean it is a deal worth keeping. Often, I see investors who are buying their first rental only worry about CoC returns rather than long term stability. Who cares if you get a 15% return when your vacancy rate is so high that you end up having to do a turnover every 3-6 months. Trust me, the repairs you will face after more than 1 vacancy in a year is going to kill any return you might have had. It is all about location! #1 Rule of real estate right?! Feel free to reach out to me if you would like to learn more.

    4Reply
  • Nick GiulioniPro Member
    Rental Property Investor · Carmel, IN · Member since 2016 · 1k+ posts · 615 votes
    4y

    Hi Shane, I have started my real estate journey here in Indianapolis. I now have more than a hundred doors. I would love to help/share my experiences and chat with you more if you're interested.

    0Reply
  • Spencer Smith
    Rental Property Investor · Mesa, AZ · Member since 2022 · 20 posts · 13 votes
    4y
    Quote from @Mike D'Arrigo:

    @Shane Rojas Indianapolis is a strong cash flow market but you really have to know the areas well and do your due diligence. Indy can vary block to block and even street to street. My biggest piece of advice is to buy the highest asset class you can afford and do not buy cheap properties in inner city, urban core areas. Stick with upper C class and above neighborhoods. I would also avoid multi families. Most are in old rough neighborhoods and with very few exceptions, do not perform well. We've been active in Indy for over 10 years. I'd be happy to share share my insights and help if I can.

     Just wanted to say thank you @Mike D'Arrigo for this comment. I've been back and forth between a few Midwest markets (including Indy) for some 2-4 unit properties and I had not realized this about Indy.  Still seems like a solid market for SF homes (which I have two of), but not a great market for 2-4 unit (which is what I'm looking for).

    0Reply
  • Ali Balapour
    Investor · Florence, KY · Member since 2022 · 10 posts · 2 votes
    4y

    Hi all,

    I live in the Northern Kentucky area near Cincinnati and look for some creative ways to start investing in Indiana and Ohio in addition to Kentucky. Are there seller finance opportunities in and around Indianapolis? I guess it would be tough given the current market situation, however any insights are appreciated. 

    I prefer to start with low risk strategies then after a few deals transition to self buy BRRRR.

    2Reply
  • Bria Johnson
    Specialist · Member since 2018 · 124 posts · 64 votes
    4y

    @Mike D'Arrigo Jumping In on this post here to say thank you very much for your insight. I do not currently invest in Indy but looking to do so within the next year. My biggest fear is that I live in the north east and I am worried about investing in properties that don’t make sense and that I can’t see. Any tips on how to properly learn the Indy market well with being miles away? I see you are from Cali so figured you are a pro at out of state investing.

    Thank you!

    0Reply
  • Spencer Smith
    Rental Property Investor · Mesa, AZ · Member since 2022 · 20 posts · 13 votes
    4y
    Quote from @Bria Johnson:

    @Mike D'Arrigo Jumping In on this post here to say thank you very much for your insight. I do not currently invest in Indy but looking to do so within the next year. My biggest fear is that I live in the north east and I am worried about investing in properties that don’t make sense and that I can’t see. Any tips on how to properly learn the Indy market well with being miles away? I see you are from Cali so figured you are a pro at out of state investing.

    Thank you!


     Hey Bria!  I'm also an OOS investor who lives a few timezones away from where I invest.  I would suggest reading David Greene's Long-Distance Real Estate Investing book.  It's got great details about every step of the process (learning area, finding agent, lender, how to rehab, etc).  I'm just finishing it up now and has helped a ton!

    2Reply
  • Joe Miller
    Real Estate Broker · Columbus, OH · Member since 2021 · 203 posts · 247 votes
    4y

    I am with Spencer! It is a great book and really helps change your perspective. Who not How!

    0Reply
  • Mike D'ArrigoPro Member
    Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
    4y
    Quote from @Bria Johnson:

    @Mike D'Arrigo Jumping In on this post here to say thank you very much for your insight. I do not currently invest in Indy but looking to do so within the next year. My biggest fear is that I live in the north east and I am worried about investing in properties that don’t make sense and that I can’t see. Any tips on how to properly learn the Indy market well with being miles away? I see you are from Cali so figured you are a pro at out of state investing.

    @Bria Johnson Start by clearly defining your criteria so that you don't invest in properties that don't make sense. There are really just 3 major factors to successfully investing out of state.
    1. Know the neighborhood and be sure that it fits your criteria for the neighborhood closs. In my opinion, the single biggest mistake OOS investors make is buying in bad neighborhoods, or neighborhoods that don't fit their criteria. Don't buy in rough neighborhoods.

    2. Know the condition of the property. Always get a property inspection. You need to know if there is any significant deferred maintenance or long term CAP Exp. Be realistic though and understand that every property will have some things wrong with it and it's the inspectors job to call them out. Just make sure that it doesn't have anything that would be a safety hazard or effect the structural integrity of the property. In other words, make sure it has good bones.

    3. Make sure you have a good property manager that is carefully screening tenants and will give you honest quotes on repairs and turn overs. Don't look for the cheapest PM. They will make it up somewhere. Rather than asking them what their vacancy rate is, ask them how many properties they manage and then ask them how many turn overs they've had in the last 12 months. Get recommendations or a PM from people who are investing in the same market and have at least 12 months history with the PM. Some PM's start off great and then the wheels start to fall of the bus. 

    1Reply
  • Bria Johnson
    Specialist · Member since 2018 · 124 posts · 64 votes
    4y

    @Spencer Smith Thank you for the book suggestion. I am going to pick that one up.

    0Reply
  • Shlomo Koheler
    Rental Property Investor · centervill in · Member since 2019 · 86 posts · 49 votes
    4y

    @Mike D'Arrigo

    What is the price point from which I am safely above the C neighborhood?

    0Reply
  • Shlomo Koheler
    Rental Property Investor · centervill in · Member since 2019 · 86 posts · 49 votes
    4y

    @Ali Balapour

    Creative financing deals exist everywhere in every Market

    People don't start getting divorced dying moving away.

    It's about you how creative are you.

    I'm just now working on sf house getting it

    'subject to'

    The seller just finished a full rehab,

    He is too much in and cannot sell

    for what he is in it including closing costs.

    I want to hear a device that he refinance to pay off his hard money lender,

    Which he did,

    I am going to give him 8k

    I need to take over his new mortgage payment,

    He walks away with almost all of his money.

    and I get a newly rehab 220k house,

    Rented for 1700

    my monthly payment for Piti is 1060.

    1Reply
  • Ali Balapour
    Investor · Florence, KY · Member since 2022 · 10 posts · 2 votes
    4y
    Quote from @Shlomo Koheler:

    @Ali Balapour

    Creative financing deals exist everywhere in every Market

    People don't start getting divorced dying moving away.

    It's about you how creative are you.

    I'm just now working on sf house getting it

    'subject to'

    The seller just finished a full rehab,

    He is too much in and cannot sell

    for what he is in it including closing costs.

    I want to hear a device that he refinance to pay off his hard money lender,

    Which he did,

    I am going to give him 8k

    I need to take over his new mortgage payment,

    He walks away with almost all of his money.

    and I get a newly rehab 220k house,

    Rented for 1700

    my monthly payment for Piti is 1060.

     @Shlomo Koheler

    This is a great example. I will send you a message if you do not mind.

    0Reply
  • Mike D'ArrigoPro Member
    Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
    4y
    Quote from @Shlomo Koheler:

    @Mike D'Arrigo

    What is the price point from which I am safely above the C neighborhood?


    Shlomo, everyone defines C class differently, but for me, I would say $100K and above on a 3Br SFR. Just importantly though, is to look at the rents in the area. I would look at areas with at least $900 rents and above.

    1Reply
  • Ali Balapour
    Investor · Florence, KY · Member since 2022 · 10 posts · 2 votes
    4y

    @Mike D'Arrigo

    Thank you Mike for sharing your insights, I just talked to an agent in Greensburg IN, and the rents were all over the place. I guess not a good area for rookie investors like me. 

    0Reply
  • Mike D'ArrigoPro Member
    Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
    4y

    @Ali Balapour the prices and rents that I shared were for Indianapolis which will be very different for Greensburg which will be lower. We've been involved in Indianapolis for over 10 years so I know the Indy market well. I don't know Greensburg at all. I wouldn't let the fact that rents range a lot turn you off. You'll see that in Indianapolis too. Indy can vary block to block so you have to understand the neighborhoods. The bigger concern I would have with Greensburg is that it is a pretty isolated satellite of Indy about an hour away from with a very small population of just over 10,000. Your tenant pool is most likely not going to come from people working in Indy and going to be somewhat limited. Small towns like these that are isolated from larger cities are often dependent on a couple of manufacturers for their economy. If one of those plants shuts down, it can have a devastating effect on the town and therefore your rental unit. 

    2Reply
  • Stanford O.
    Member since 2020 · 4 posts · 5 votes
    4y

    @Mike D'Arrigo hi Mike, out of state investor and would love to hear more about KC and Indy Markets

    0Reply
  • Tommy Restivo
    Real Estate Agent · Champaign, IL · Member since 2020 · 26 posts · 11 votes
    4y

    Great Insight from everyone thank you

    0Reply
  • Kate Jones
    New to Real Estate · Long Island, NY · Member since 2022 · 59 posts · 23 votes
    4y
    Quote from @Ali Balapour:

    Hi all,

    I live in the Northern Kentucky area near Cincinnati and look for some creative ways to start investing in Indiana and Ohio in addition to Kentucky. Are there seller finance opportunities in and around Indianapolis? I guess it would be tough given the current market situation, however any insights are appreciated. 

    I prefer to start with low risk strategies then after a few deals transition to self buy BRRRR.


     Hey there. I am from NY and I am looking to move to the Northern Kentucky area. I would love to hear any of your insights on Kentucky. I am looking to buy my first property. I have never been there so it would be nice to talk to you for any additional information or experiences you'd like to share. Thanks!

    1Reply
  • James WilcoxBusiness Member
    Real Estate Agent · Bowling Green KY ~ Lexington, KY · Member since 2015 · 1k+ posts · 600 votes
    4y
    Quote from @Kate Jones:
    Quote from @Ali Balapour:

    Hi all,

    I live in the Northern Kentucky area near Cincinnati and look for some creative ways to start investing in Indiana and Ohio in addition to Kentucky. Are there seller finance opportunities in and around Indianapolis? I guess it would be tough given the current market situation, however any insights are appreciated. 

    I prefer to start with low risk strategies then after a few deals transition to self buy BRRRR.


     Hey there. I am from NY and I am looking to move to the Northern Kentucky area. I would love to hear any of your insights on Kentucky. I am looking to buy my first property. I have never been there so it would be nice to talk to you for any additional information or experiences you'd like to share. Thanks!

     NKY is pretty great overall. I can help more with central KY if you were intested. Really putting some boots on the ground is the best way. Book a flight and come visit!

    REI James w/ eXp Realty54 Reviews
    WebsiteView Page
    1Reply
  • Ali Balapour
    Investor · Florence, KY · Member since 2022 · 10 posts · 2 votes
    4y

    @James Wilcox I love to visit, actually Lex is like an hour drive for me. I can definitely meet up. Do you have any local f2f networking groups? Like a monthly meetings or so?

    0Reply
  • James WilcoxBusiness Member
    Real Estate Agent · Bowling Green KY ~ Lexington, KY · Member since 2015 · 1k+ posts · 600 votes
    4y
    Quote from @Ali Balapour:

    @James Wilcox I love to visit, actually Lex is like an hour drive for me. I can definitely meet up. Do you have any local f2f networking groups? Like a monthly meetings or so?

    We have a few. I help run one. Usually posted to BP events or on Facebook. Also, been one forming on Meetup on the regular. I am pretty sure there are ones meeting up that way in Northern Kentucky. I would ask around up there or some of the local investors on BP. REIAGC (Northern Kentucky Real Estate Investors Chapter), NKY Real Estate Investor Network, and NKY Impact REI are the ones I had for northern KY but unsure if they still active or doing f2f.

    REI James w/ eXp Realty54 Reviews
    WebsiteView Page
    1Reply
  • Mike D'ArrigoPro Member
    Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
    4y
    Quote from @Stanford O.:

    @Mike D'Arrigo hi Mike, out of state investor and would love to hear more about KC and Indy Markets


     Hi Stanford, both are strong markets. I'd be happy to chat with you and share some insight. I sent you a DM.

    0Reply
  • Dave Skow
    Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
    4y

    @Shane Rojas- 1) make sure you are fully pre approved ( not pre qualified ) and make sure this has been  done recently  as  rates have increased  sharply 2) are you looking to buy a primary residence or a rental property ?  ( if  a rental - plan on down payment of  15% or more being required)

    0Reply
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