Indianapolis Rental Market and Deal Analysis

[Tracy Meyers]

Hi BP Community,

I'm looking at a deal in Indianapolis and am unfamiliar with the area. I'm wondering if anyone with experience out there can give me an idea of what the market is like and the viability of this deal. My focus is on cash flow.

The property I'm looking at is a single family home, total investment of around $40,000 and rental comps at $650.

1) How are the neighborhoods in the 46218 zip code? Is it a B or C area?

2) Is one month a reasonable time for tenant placement?

3) Are there any issues with investing in Indianapolis that I should be aware of?

Thanks in advance for taking the time to address my questions and concerns.

[Eric Severson]

I live in Carmel north of Indianpolis and I prefer to invest in my own backyard at this point in my investing career. I wasted almost a year looking at houses under $50k and everyone one of them felt "slum lord" like. Some areas I went to and I never got out of the car, for example an opportunity zone. I focus outside of the circle freeway, interstate 465 for those not familiar. I now focus on $100k-$150k ARV ranges in areas with GREAT schools with rents in the $1200-$1300 ranges. I certainly do not meet the 2% rule but I can cash flow positive which is all I care about right now. Even in that rent price point, I struggle with tenant qualifications. My lowest price rental I bought and rehabbed for $85k that rents for $1050 was the easiest to rent as far number of applicants. At $1300 the number of applicants is scary but I do get them rented. Just sharing my limited experience in Indianapolis as a person who lives here.