Gary Indiana Exit Strategy and Appreciation

[Eric Thompson]

I would love to hear from people invested in Gary Indiana about their exit strategies. I am considering an investment with a very healthy cash flow with very stable rents. I am a buy and hold investor but will potentially use this property to leverage into a larger one down the road.

My main concern is the exit strategy on this property for if, when, I decided to sell to use the equity to upgrade.

Has anyone experienced issues with selling their property recently? 

What is the anticipated appreciation rate going forward? 

What exit strategy should I put in place for an investment in Gary? 

Anything else I should consider or know?

I have done my research on the area, I am fully aware of the current situation in Gary, their redevelopment plans, and such.

I feel like Gary can go one of two ways at this point:

1. They figure things out, start to turn it around and actually grow. Thus driving up property values. Those investors that get in early will see huge rewards.

2. The government cant figure it out and Gary proceeds for the next 10 years exactly like it is now, at the bottom.

I guess there is a third option in that things somehow get worse for Gary.

Would love to hear thoughts, just not about how much of a "disaster" it is or how "run down" things are or how its "block by block".

[Soh Tanaka]

@Eric Thompson It's hard to predict the future, isn't it? What I do is instead of analyzing properties to death, I diversity into different areas with different types of properties (within single-family homes, as I do believe in that.) Chances are some will do better than my expectations, and some will disappoint me. But what I learned so far is that if you hold properties long enough, many times things will even out and give surprisingly good results. Yes, I have some in Gary.