C/D class investment in Indianapolis

[Billy Brown]

Not sure where to put this topic.

I have a contract on 23 units just on the outskirts of Indianapolis.  21 are rented out.  Cap rate is 17.  I have under contract for $325k.

I'm not that familiar with Indy.  I've spoken to a property manager that has properties in that area and it is lower working class with higher crime.

Here are my needs:

As a lender, i have yet to find a lender in the area that likes portfolio loans on this asset class. (which makes me worry). Any recommendations?  These are townhomes that i'm getting at $14k each.

As an optimist, i wonder if there is a way to get rid of the rif raf that is causing the high crime in the area.  Has anyone worked with local community leaders to make that happen with success? Or just bought the homes from the criminals and kicked them out?

[Joel Wilmoth]

We work in PM in these areas and have done so for over 20 years.  The way you turn an area around is one property at a time.  You will be in a position to make that change by setting standards for your units and for the tenants you will accept.  

These units can work if you approach it as a great landlord. Particularly with those cap rates. I am assuming as townhomes they have some HOA fees and they are included in the expenses?