MFH - East of FS -- Keystone and Prospect

[Allvin Dsouza]

Hi everyone, I have been looking at properties in Indianapolis and have been really deeply entrenched in getting to know areas from out of state- my plan is to go there soon- but work is tying me up at the moment. I am getting an offmarket duplex in this area. Purchase price is 110k and total rent around 950$. The numbers work out well from cash flow perspective but can one get stable tenants in this area?

I read on another thread that most of MFH in indy are generally not in desirable neighborhoods so i was wondering whether this is going to be a headache in long run.

This is close to fountain square but not in core FS, so Is there a possibility of future appreciation on these streets too.  Just wanted to get an idea on the experts from this area.

[Tchaka Owen]

I won't speak for Fountain Square, what I will say is that in Indy, it is unlikely that I would pay $110k for a duplex that's generating $950/month gross. Emphasis on "unlikely". 

There's no one way to invest or single rule, but it's safe to say that a $110k duplex should gross in the $1200-1400 range (and easily could be higher). Again, that's Indy. Each city is different.