Multifamily Investing in Indianapolis

[Aaron H.]

Hello, BP!

I am currently looking to invest into my first multi-family home. I plan to use an FHA loan or possibly a 203k loan to fund the deal. I figure the whole "house hacking" idea would be a great way for me to help save some money from rent, utilities, etc.

Ideally, I would like a duplex with 3br/2ba on each side. But I would be open to the idea of a triplex or quad.

Curious though, what are some decent areas to look into? I know areas like fountain square, irvington, little flower, emerson heights, bates-hendricks, etc. are all solid areas. But what about areas like tuxedo park, grace tuxedo park, englewood, brookside, etc? Or even with all of the negative media coverage lately.. beech grove? What is everyone's take on those areas?

[Ryan Mullin]

For multi fam I would stick to these:

"fountain square, irvington, little flower, emerson heights, bates-hendricks, etc."

and stay away from these: 

" tuxedo park, grace tuxedo park, englewood, brookside, etc?  " 

Honestly...  I would even scratch emerson heights and little flower off the list if this your first go around.   Add Herron morton, old north side, Fall creek place, Broad Ripple ( and sobro), Meridan kessler, and Butler tarkington.  

Don't aim for a 12 cap or above.  You will be disappointed.  I would settle for a very stable 9 cap with the potential of increasing rents in the future.  Pay down debt like crazy, add improvements, keep the (overly qualified) tenants happy, don't let units sit vacant..  lower the rent if you need to.  - Just my 2 cents.