Cottage Homes Neighborhood in downtown Indianapolis - Analysis

[Andrew Bonar]

Hi BP,

I'm interested in buying within this small historical neighborhood on the near east side of downtown Indianapolis, but need help making sure this is an area of opportunity. Most homes are either completely renovated or new builds, along with some long time owners that have well maintained, but not renovated their homes. I would use as rental property until selling when I'm satisfied with the appreciation. The neighborhood is Cottage Homes. Literally right by Mass Ave. and separated from the "bad" side of east downtown by Arsenal Tech high school. These homes sell between 250K and 400K and I think rent for around $2,000 - $2,800 a month. I would really love some insight into this neighborhood if anyone on BP is familiar with it. What do you think a reasonable purchase price for a completely renovated historical home in this neighborhood should be? Will these homes continue to appreciate quickly? Can I really achieve rents between $2,000 and $2,800? Is there a market for rents this high? And any other insight that may be of great help.

Thank you!