Indy Investor/Developers!!! Thoughts on Mapleton/FallCreek Area?

Question

Thinking of buying a multifamily... live in one side.... rent the other. In the Mapleton Fall Creek Area. My biggest concern is the area. Right now, its not the best area... but not the worst. I wonder what quality renters we can get on the other side. Also, how promising is the development in that area near 30th and Central/Delaware/washington/NewJersey ave?

I just genuinely don't know... I don't know pros/cons, just really unfamiliar with the are etc. Should I roll the dice and take the risk?

Just need some advice on it all... please!

Phil Kirk · Answer

Hi @Lamont Glover IIHappy to share my thoughts about the neighborhood (as a realtor, a resident, and an investor). My response will be a little different than most of my posts because you're not strictly viewing this as an "investment" play but also as an owner occupant.Investor answer: Rent rates are all over the place. Depending on the street & property condition, we've filled 3 bed; 1 bath duplex units for up to $1200/month per unit. But we've also filled same size duplexes for only $750/mo. Lots of variables are at play to hit the higher rate, but depending on what your cash on cash goals are, it could be a great fit. As far as finding qualified renters - we haven't had any issues there, but again - lots of variables as far as location, condition, etc.Resident answer: MFC is very street by street as far as how it 'feels'. If you've ever played around with Trulia's crime map, you can see there are super safe pockets of the neighborhood and then others that have more crime. But at the end of the day (since you're owner occupying) there's the "data" and then how it actually "feels". We've worked hard to engage our neighbors and build community so that we look out for each other. As a result, our street has been crime free for several years. MFC is head of heels safer than it was even 3+ years ago. Development doesn't seem to be cooling down yet either (although there is a bit of over-saturation of single family flips over $225k... but that's another conversation). Here's a breakdown of the 'top of the market' for MFC duplexes over the past four years:2018 424k2017 240k2016 $234k2015 $130kPM me if you have any questions! Happy to help

Eric G. · Answer

@Lamont Glover II. I'm a big fan of the MFC area. Currently, I have a new build project at 30th and Broadway and 30th and Ruckle. Both new builds will hit the market 2/1. I have several other lots in the area which I will start new build projects to hit the market 4/1. MFC is an area in transition and has not "fully arrived yet." To me that's a sign that there is still money to be made (as opposed to say Fountain Creek/Bates Hendricks where the price of entry is so high it is difficult to make a respectable profit). MFC is certainly block by block. I've driven the area on three extended visits to Indy in the past seven months. Certain blocks are just beautiful (check out North Park Avenue, Broadway and Ruckle as an example) while others have still yet to really transition (e.g. New Jersey and Delaware). The Mapleton-Fall Creek Development Corp (the local community group) is quite influential and impactful in the area (check out their website). They have spearheaded efforts to bring pocket parks (e.g. Ruckle Street Pocket Park; check out their Facebook page) which brings the community together (they even have a lending library in their pocket parks!) and add greenery to the area blocks. If you are thinking future appreciation, these parks are even hosting morning yoga events. There is a new rapid transit bus line coming down College so that area is primed for growth. The blocks between College (going west) to Central between 29th and 35th are well located to benefit from the continued urban infill movement, access to the Monon Trail, new transportation lines (as I mentioned before) and the close proximity to Old NorthSide/ Fall Creek/ Kennedy King and Herron-Morton. For buyers who cant pony up to the $350,000+ SFH level for those neighborhoods, MFC provides the next best thing at the $250,000-$330,000 level.PM and we can talk in further detail regarding my analysis and why I'm so big on the MFC creek. I think you have made a smart decision in selecting that area for a house hack. Eric

Jaron Walling · Answer

MFC is the next Broad Ripple. I lived there for 2 years and Broad Ripple for the last 3 years. If anyone has questions about the neighborhood feel free to reach out to me.

Quantrell Turner · Answer

I've done 5 flips in mfc. I still believe there is money to be made. The problem is many sellers have jacked up prices and rehabs are heavy. I was buying 3/2 min 1800 sq ft for 20-35k. Now these same homes are 75-90k needing 75k-100k rehab. Arv on sfh rehabs are on average 200k. There is one property that sold for 300k on 33rd block of broadway now everybody says comps are 300k their not! That was a great property and he found the right buyer. I'm looking for flips but I won't pay over 40k in purchase price. Numbers don't make sense bc these homes are so big rehabs are heavy. Quantrell Turner

Jeff Schechter · Answer

i 2nd what @eric g said.. hard to go wrong in MFC. Lots of opportunity without the ridiculous prices of Fountain Square

Lamont Glover II · Answer

@Phil Kirk Thank you so much for all of this info! We REALLY appreciate it! I will do some research now and reconsider everything. Thanks again, Phil.