Indianapolis Duplex Location Analysis

[Ryan Yetter]

Indianapolis Folks,

I’m looking at two potential duplexes in two different neighborhoods in Indy. Both were recently rehabbed (one down to the studs). I’ve heard/read a lot of negatives about duplexes in Indy and wondered if these two fell into that boat. I’d love your opinion on the locations and duplexes in general in these areas:

Irvington Duplex is located near the major cross streets of Emerson and Washington (specific cross streets being Julian Ave and Butler Ave).

-Purchase Price: $55k (traditional financing with 20% down, plus $4k cash for closing costs and for some curb appeal/touch up work)

-Combined rents for both sides: $1125

-I’m factoring 50% for expenses (could be higher, waiting to hear how utilities are handled).

-$2754 annual debt service

Looks like:

Internal Rate of Return (IRR)	27.34 %
Cash on Cash Return	28.54 %
Return on Equity (ROE)	21.40 %
Capitalization Rate	12.27 %

Highland Vicinity Duplex is located at Freeway 65 and 25th St (specific cross streets being 25th St and Highland Place).

Stats are almost identical to those above, but will be a cash deal (followed by a cash out refi).

Appreciate any input! 

[Account Closed]

Ryan Yetter I'm fairly new to investing like you and have been purchasing homes in Indy since October. Everyone on BP advised me to stay away from duplexes. Especially as a new investor. They are harder to manage and have a limited amount of buyers as an exit strategy. It's also apparent that for the same rents you can get a SFH making it more difficult to find renters. It's definitely an option for some with the right management and experience but perhaps not the best decision for a newbie.