Indianapolis Rental Market
I am a 22-year old looking to get started investing, and based out of Indianapolis. I would like a lower-cost property for my first investment, and I will likely be doing a BRRRR method. The one thing I am hesitant about is making sure that I can get solid tenants that will actually pay their rent. Does anyone have any good tips about how to get great tenants even in a low-income area? Or are there other investors in Indy that invest in low-income areas that would be able to chat? Thanks!
Most Popular Reply
@Michael Maloney
Hey Michael, I'm a OOS Indy real estate investor from NY.
You can hire a local property manager that has the experience to leasing and collecting from lower income neighborhoods and split profits with them via PM fees. While it's not 100% passive, it certainly takes the learning curve down by a lot but you'll certainly have to know how to deal with PM's. This is my preferred way, mainly because I live in NY lol.
The other option is, if you have more time than income, you take the reins and learn it yourself and keep the PM fee. For the uninitiated investor, you'll have to factor in "oops" money. Oops I picked the wrong contractor, tenant, method of collections or prolonged a lease when you should have evicted. While it's RE education on 3x speed, you'll have to see if you have the stomach to go through tough times and not give up.
In either decision you make, for lower income properties don't get sucked into "paper" returns. A 30k market value property that can potentially rent for $600/mo a month looks like your way to financial freedom, but it's not. These income traps properties will almost always make an investor regret buying. If you find an investor friendly agent, find a great deal and find the best way for you to manage, you'll be a happy investor that can repeat this forever.