Investing in Muncie Indianapolis?.

[Terron Winn]

Hello all, Has anyone had any luck with buy and holds in Muncie? zip code 47302. I have came across a home with an ROI of 27 percent. However I am skeptic of the area.. purchase price is 13K and rents in that area are 525. according to the seller everything is just about ready to be rented. I had a separate construction agency go out and he quoted me 4K to fix the minor stuff he seen. the seller suggested we can do quick claim deed but we can also got the route of a title company. It seems as this may be too good to be true but again this is my first buy and hold so I may be paranoid. Any input please! Am I looking over anything besides sending out a home inspector.

[Anthony Drew Gary]

As a "local" from Indianapolis who went to Ball State in Muncie for college, I can promise you there are next to no people who live in Muncie and commute to Indianapolis for work.  There's not enough appeal to Muncie to make it worthwhile.  The big draw to Muncie, and literally half their economy, is Ball State University.  When you start looking at renter applications, those who work for the university will be your most reliable.  Otherwise, I agree with the majority of the assessments above.  Those who are really killing it in Muncie own student rentals adjacent to campus.  That market is always hot and there are 6-8 players who tend to end up with the majority of the good locations.