Advice and Tips on the Indianapolis Market

[Mohammed W.]

Hi BP Community. I've been soaking up as much info. and advice on the site over the last 2 months in search of a good market to invest in. I've narrowed it down to Indianapolis based on the population and job growth figures, rent to price ratios and not too extreme weather. I live in CA, so this will be somewhat of a challenge. I've read nearly every post including the keyword Indianapolis and appreciate all the tips and advice everyone has shared. I have a few more questions I'd really appreciate if anyone with Indianapolis experience would share. 

1. Any recommendations for a good property manager willing to manage lower end rentals? My main concerns are integrity, good reporting and a fair price.

2. I'm told Perry and Franklin Townships are better areas to invest in, though inventory under $50k is limited. Anyone have success in Wayne and Warren Townships at a lower 20k-40k price point?

3. Any good handyman recommendations that can handle a rehab? Integrity and price being the most important factors.

4. Any general advice or tips on the Indianapolis market?

Thanks in advance for all guidance provided to all us newbies and relatively newbies. It's very much appreciated. 

[Mike D'Arrigo]

@Mohammed W. 

Indianapolis is a very good cash flow market, however, based on my experience in Indy, I think your criteria is seriously flawed, especially for an out of state investor. Buying $20-40K properties will be a guaranteed disaster. You're not going to find properties at this price that will perform well. They will be in rough areas of Center township. You can do very well in the right areas of Warren and Lawrence but you have to know the areas well. They vary neighborhood to neighborhood and sometimes street to street. Most of our turn key properties are in Warren and Lawrence and do well.

Inventory under $50K in Perry and Franklin is not just limited, it doesn't exist. These are mostly owner occupied areas at much higher prices. Keep in mind that prices in Indianapolis have gone up nearly 10% for the last 2 years.

My advice is to stay away for the cheap stuff. There's not a property manager in the world that can make them perform. Feel free to contact me if you'd like more input.