Investing in Indianapolis, IN

[Christine Liu]

What is the current climate of buying rental properties in Indy? What are some good areas/neighborhood to invest in? I am a first-time investor, starting with 50K.

[Clay Manship]

Christine Liu

I feel compelled to step in here and set a few things straight...

"The Indy market is not largely categorized by its zip codes or neighborhoods"...could not be farther from the truth. Indianapolis is a very Street by street, block by block city with lots of ongoing gentrification. So you must know it well or know someone who does. But for rental property, there are certain zip codes I would beg you to avoid as your first investment, and even neighborhoods within "good" zip codes to avoid.

Secondly, the idea that you can get a "rent ready" property for $25,000 in Indy I guess technically isn't false. However, is it really the kind of property you want? Most of these properties are located in neighborhoods that are just graveyards for previous landlords who have given up. The idea that the average joe can go pick up a $25k property off the shelf, rented and ready to go, in a decent neighborhood here in Indianapolis is misleading at best, and straight up untrue at worst.

I recommend you deploy the $50k into one property that will lease for $800+, and is worth $75k+, where you can BRRRRR your money and do the same thing over again. This can happen consistently if you are buying from the right people.

Best of luck!