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Updated over 6 years ago on . Most recent reply

User Stats

154
Posts
158
Votes
Peter Stewart
Agent
Pro Member
  • Real Estate Broker
  • Indianapolis, IN
158
Votes |
154
Posts

Mid-Level Investor from Indianapolis

Peter Stewart
Agent
Pro Member
  • Real Estate Broker
  • Indianapolis, IN
Posted

Hi BP Community!

I am new to the site and I'm absolutely loving it so far. Amazing education, connections, people, etc. I live in Carmel, IN (outside of Indianapolis), with my wife and two kids. I've been a full time Realtor since 2009, and I've owned rental property since 2011. I am looking to ramp up the investing side of my business, and that's how I ended up here. 

I currently own 6 units and I'm under contract for 2 more. I have done 1 flip (2017) and I'm in the middle of my 2nd. I am also getting in to new construction - I have two lots that I'll be building spec ranch homes on. Plans are filed with the city on one, so I hope to break ground within a few months.

After getting inspired by the podcasts, I have set a goal of 100 units in the next 5 years. I plan on funding the units through the flips and new builds (also will be growing those businesses). I'm here to not only learn, but to help wherever possible, and network with awesome like-minded individuals.

Cheers!

-Pete

Most Popular Reply

User Stats

154
Posts
158
Votes
Peter Stewart
Agent
Pro Member
  • Real Estate Broker
  • Indianapolis, IN
158
Votes |
154
Posts
Peter Stewart
Agent
Pro Member
  • Real Estate Broker
  • Indianapolis, IN
Replied

Thanks @Fernando E.!

46203 and 46205 are really popular areas for 2-3 unit properties. Many of the investors I work with buy rentals in those zipcodes. 46201 as well. The entire near northside and near eastside are hotspots for investors right now. Most of the properties are older, but, that is very common in Indy. Nearly all the new(er) construction is SFR's. Housing is so cheap and land so plentiful that they don't need to build multifamily properties - it's either condo/apt buildings or SFR's.

The older homes do require a bit more love than the newer ones, but you can hit 1.5-2% on rents pretty easily in those areas so you can budget a little extra for maintenance and cap ex. For example, I sold a duplex to a CA investor 2 weeks ago for $50k that was bringing in $475 and $525 (exactly 2%). Both sides rented, and one side was cleaned up (other needed some work, but was habitable). This is on the low end of price (usually more like $65-75k), but you get the idea.

The market in Carmel is on fire - it's an extremely desirable area, with high demand and very low inventory. Not a great place to buy rentals in my opinion. Or flips. Not only are there very few multi units, but you're paying a price premium to live in the area but the rents aren't proportionate. For example, a $400k home may only rent for ~$2200. And, because it's an affluent area, there are very few distressed properties.

I did get lucky with a 4 unit I purchased in Carmel in 2016 - I was in the right place at the right time, so that one cash flows well.  But, I haven't seen anything come close to that property in the last 2 years.

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