New Investor Looking into Evansville

[Mike Dolan]

Hi BP - I'm an out of state investor looking to get into the Evansville, IN market. My criteria is buy & hold rental properties, 2/3 BR SFH or small multi-family (2-6 units) under $200K. I've been working with a local real estate agent, have a property management company lined up, and reading through forums to get a better understanding of the market. My RE agent says that 47714 is probably the best area as far as tenant class and location due to it being close to the university. Wanted to see if anyone had any insight on other areas I should be looking. Also, would love to connect with any investors in the area to learn more about your experience and what to expect.

[David Lambert]

Hey Mike! I am very familiar with this area! I am not an agent though. I would look into the NE side of Evansville(47715) as well as the nearby town of Newburgh(47630). I think both these areas have much greater long term potential than 47714. Both of these areas are experiencing tremendous growth and development. 

47714 has some benefits: UE has some foreign students who need housing, it also has some cheaper inventory and is more likely to have some rehab opportunities. IMO it has some pretty significant drawbacks. UE is declining and has been for years. I would not trust in its draw for a property that you are planning to hold for a long period of time. A lot of the neighborhoods in this zip code, particularly the southern portion, have serious crime issues. The problem has been getting worse for several years and the PD seem incapable of implementing a plan that will address it. Prepare yourself for the potential of tenant issues in this area which may be a challenge if you are out of state. 

Im sure a talented agent will be able to find you a deal that pencils out well in any of these areas. I just wanted to mention some things to consider.