Invest in Indiana for cash flow or appreciation

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Invest in Indiana for cash flow or appreciation

Abhishek B.
Los Angeles, CA · Member since 2015 · 7 posts · 2 votes

Hey Guys!

I'm a new investor from Los Angeles and a looking to make my first investment out of state. I have shortlisted a few markets to invest in and am currently researching the Indiana market. I have a couple of questions that I am seeking answers for:-

  • What type of SFH layout rents best in the Indianapolis downtown areas (2/2,3/1,3/2 etc)?
  • Is multifamily a good investment in the Indiana market?
  • Are the typical tenants in the downtown area (around fountain square, Bates-Hendricks) people who work in tech and are usually millennials? If not, then where are the millennials renting?
  • Is it reasonable to settle for lower cash flow in gentrifying areas and invest there mostly for the appreciation?
  • What are some of the other neighbourhoods in Indiana which provide stable cash flow and are in safe neighbourhoods.
  • Does anyone have or can point me to a detailed neighbourhood map of Indianapolis  neighbourhoods

I am planning to be in Indianapolis around the 28th ,29th of June and would love the opportunity to meet some of the turnkey providers and property managers who can provide a tour of the city and neighbourhoods they invest in.

Thank you in advance!!

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  • Josh C.Pro Member
    Property Manager · Indianapolis, IN · Member since 2010 · 1k+ posts · 1k+ votes
    9y
    We'd love to help you when you come to town. There are great areas in Indy, but we too are suffering from a hot market and margins are tighter and tighter. As far as a map I know Louise Alexander has a nice maybe she can share here. I personally have 3 rentals in bates, but I bought them last year and that neighborhood has since doubled in value and I probably wouldn't have bought them in today's market. Near East side has some good pockets and north side is always good if you have money. Good luck and let me know how I can help. Josh
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  • Mike D'ArrigoPro Member
    Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
    9y

    @Abhishek B. What type of tenant are you trying to attract? Are you looking for families which tend to be more stable and stay longer or millennials which are at a different stage in life and can be more transitory. If you want to attract families, 3/2 or 4/2 homes in the suburbs would be your best bet. The downtown and inner cities are very tricky and can vary neighborhood to neighborhood and street to street. Even Fountain Square and Bates Hendricks are spotty so you have to know the area real well. As far as whether it's reasonable to settle for less cash flow in gentrifying neighborhoods, only you can answer that. That depends on your own personal investment goals and long term plans. Are you investing for equity or cash flow? How long do you plan to hold the property? If you plan to hold long term, how are you going to get your equity out?

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  • Abhishek B.
    OP
    Los Angeles, CA · Member since 2015 · 7 posts · 2 votes
    9y

    Hi @Josh C. ..I am mainly looking for 2 or 3 cash flow properties in B neighbourhoods and relatively low crime and safe C neighbourhoods where the tenants would want to stay for a long time and the properties themselves will require less maintenance on account of relatively newer homes (maybe built after 1960) . I plan to hold the cash flowing properties for at least 10 years. But I would also like the explore the option of  diversify by investing in a gentrifying neighbourhood where there is scope for some quick appreciation in maybe 2 to 3 years. For a property in gentrifying area I plan to sell once enough equity is available and reinvest that in another stable cash flowing property.

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  • Account Closed
    Investor · Singapore · Member since 2013 · 1k+ posts · 3k+ votes
    9y

    I would not consider midwest for appreciation. Despite recent blips in some neighborhoods, it doesnt have a track record of sustained appreciation and recent gains have come off of historic lows. I would not expect meaningful appreciation going forward. OTOH coastal markets have a much better long term track record, especially in core parts of LA and the Bay Area.

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