Midwest investment - is $650 for a 2 bedroom too low?

[Diana Villalon]

I'm looking for a duplex in Indianapolis, I found one where the #'s seem to work, but the rent is only $650 for a 2/1, it seems too low to make it worth the property management's while, the zip code says the schools have good ratings. Does it seem reasonable to rent a duplex for $650 in the Midwest? 

zip code 46201

[Tyler Jahnke]

Hi @Diana Villalon - I'd say $650 per month is pretty low which also generally bring with it a certain type of tenant class. Looking at your zip code of 46201, you are probably in one of the more rough neighborhoods in Indy.

Make sure to take a look at a crime map and ask yourself if you're willing to take on the risk of those neighborhoods. Not to scare you away, but you'll probably have to hold for a few years before the neighborhood turns around (it's starting slowly).

If the duplex is in Emerson Height as close as possible to Irvington, you should be OK, or the east-side of Little Flower is good too. But, anything between Woodruff Place and Emerson Heights is pretty rough.

Also in talking to residents in the area last year, I also hear that with heavy rains a lot of property flooding occurs because the storm drains feed into the sewer lines. But, you'll have to verify that 100% because this was just from locals I talked to.

Best of luck and let me know if you have any questions! I have a couple properties in Indy.

-Tyler