Los Angeles, CA · Member since 2022 · 3 posts · 11 votes
Hey everyone.
I'm in the early stages of picking an out of state market to invest, and could use a little guidance. I've zeroed in on the Indianapolis metro area. Population seems to be on the rise and there are a few submarkets that I've found that appear to have decent rent to price ratios.
So my question is:
How much should I be paying attention to the percentage of residents who own vs. rent their home? For example, let's say I'm doing research on a specific town/neighborhood and I see that 93% of people own their homes and only 7% rent. Does that mean demand for rental properties in that area is low, and should therefore scare me off?
Hi @Derek Elliott just my 2 cents and don't want to scare you off but I would seriously consider 7% renter occupied. Especially for an out of state investment, you don't want to be stuck with a vacant home! What other areas were you looking at? I recently invested in a SFH in Arlington, DFW, also out of state (out of country) for us. An obvious consideration was the rental market in the area. Pretty high level numbers out there, but we're close enough to corporate headquarters we are confident there's enough rental demand. Also close to schools, etc. DFW has something like over 59% are renters and occupancy rates are 93%.