Indianapolis market

[Chris Zlotnik]

what is the realistic cap rate that i can expect to get in Indianapolis? What are some B-C+ rental areas in that market?

[Ryan Mullin]

@Mike B.  @Taylor Jennings Irvington for SFR and smaller multi family is great. Never had a bad experience. For 20+ unit buildings on washington street... eh.. not the same thing. Washington street between emerson and arlington (Irvington) has lots of big apartment buildings and they are notoriously ghetto as most everything right ON washington st is. Back in the neighborhoods of Irvington (even a just half block from washington st.) is amazing. You can tell which pockets are rental pockets and which are home owner pockets but I love both. Great place to invest. Even doubles and quads work in Irvington if they are done right.

@Justin Owens   The neighborhood just north of the raytheon plant is historically (in my 10 years experience) the most vacant neighborhood in the city IMO.  Community east area is definitely a step up but its still not good for doubles.  That area is great for buying a little 2 bedroom house for 25k - 30k all in and rent for 550 - 595/month.  I would only buy a double over there to convert it to a single.  

@Shawn Holsapple is right.  Duplexes in inner city Indianapolis are tough.  In areas like Irvington, broad ripple, woodruff place, or meridian kessler you can get some really good tenants and make them work.  Think of it like this:  They have to be in places where college kids will live. College kids are broke, but not ghetto.  If an area is even slightly questionable then doubles just don't perform.  Good tenants know that they can get a single family house so that is what they do.  People that rent doubles are looking to move into a single ASAP, making it nearly impossible to find a long term tenant.