Best zip codes in Indiana for buying an 8-16 unit apartment???

Question

Hi BP,

I'm a small-time investor that has primarily focused on single families & multis in the Midwest. Next month I am trying to take the leap and purchase my first 8-16 unit apartment complex in Indiana for $500k-800k.

Right now I only have 1 single family in NW Indiana, so my experience with the area is very limited. I wanted to ask all the Indiana folks what zips or sub-districts are you excited about, and why? Also, any links or resources to areas with strong job growth / commercial development in Indianapolis?

[I usually stick to C+ / B- / B neighborhoods, and I'm starting to realize that my B neighborhoods (that look worse on paper) are actually performing better and giving me much less headaches than my C/C+ neighborhoods. For that reason alone I want to stick to B-/B areas, as I want really little headaches with this purchase. I usually aim for 10% caps, but definitely willing to drop if appropriate. Thank you so much for any help in advance!]

Jason Million · Answer

@Rohan J.  I can vouch for Muncie and Ball State Area.  It's a great Rental Market for both students and non-students who stay in the Muncie area.  I was raised in the Area and I attend Ball State :-)

Also, you should check out Fort Wayne & Lafayette too.

Jameson Drew · Answer

More stable tenants/higher rents closer to Ball State.  In general, still relatively low housing prices make it easy to enter into.  The rest is just research and groundwork.

KC Zhang · Answer

I lost a deal in Speedway area last year, it's 10 unit in a C area with very good cash flow. Don't know the zip code, but it looked like a decent area.

Drew Wiard · Answer

Can't speak for Muncie, but Fort Wayne is on fire (similar to KC a while back).  I have working toward securing small multifamily properties around Fort Wayne, and outside of a fist full of nice duplexes that I've picked up, it's been challenging.  If there are any leads or suggestions that anyone has for the aforementioned properties in Ft. Wayne, I'd love to hear from you!

Gino Barbaro · Answer

@Rohan J.

I would reach out to @sterling white.  He is a prolific writer and very experienced in that market

Gino

Rohan J. · Answer

Thank you everyone!

If anyone has recommendations for a knowledgeable Commercial Agent in Indiana , please feel free to message me :)

Scott Steffek · Answer

Rohan,

You might want to look into Crown Point, Indiana. It's an A- area and they have B areas that are on the fringe portion of the city. However, the good deals are snatched up in a heartbeat.  Currently, the market is very tight all over. But the deals are there. If you'd like to PM me, I can give you more information about Northwest Indiana. Best of luck to you.

Rohan J. · Answer

Hows that area in Indiana? If possible, would love to hear the details over a PM :)

Jameson Drew · Answer

Well I possibly have an apartment building for sale in Muncie, IN if you are interested.  The only downside is that 2 out of 8 units havent been renovated yet.

Rohan J. · Answer

I really only have interest in 3 markets: Indianapolis, KC, and Jacksnville .

With regards to KC, I'm getting absolutely crushed on all of my bids. The market is just too insane, and it gets depressing missing out on property after property. As an out-of-stater who doesn't want to purchase in a super-rushed manner, it's time to wave the white flag in KC and move on, lol.

With regards to Florida or Indy, I'm still a little undecided. I could probably go either way, but I do like the job growth and rental numbers I'm seeing in Indy. Seems like there is enough opportunity to grow a large, high-performing portfolio in the near term.

Best zip codes in Indiana for buying an 8-16 unit apartment???

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