Shouldn’t I Find Investment Properties in the Top 100 MSA’s

Recently, I was asked by an out of state investor why he should invest in Indianapolis. He was told that he should invest in the top 100 MSA’s and he has never seen Indianapolis in there.

Not so fast, I thought.

I agree you do have to look at the top growing MSA’s (Metropolitan Statistical Areas). That’s especially if you want to buy low and sell high because a top growing MSA usually mean that price values are going up as well (usually) or are prime for growth. But by the time they make the list it may be too late or maybe not.

Indianapolis is one of the most stable economies and isn’t always in the top 100 but there has been a lot of articles written about its surrounding cities like Fishers, IN and Noblesville, IN. Indianapolis is the 13th largest city in the U.S., the third largest city in the Midwest, and the second most populous capitol in the U.S., behind Phoenix, Arizona. The labels of The Amateur Sports capitol of the World, and The Racing capitol of the World, have both been applied to Indianapolis.

Indianapolis Real Estate around the metropolitan area has seen modest and steady growth among U.S. cities.

with growth centered in the surrounding counties of Hamilton, Hendricks, and Johnson. Hamilton County Real Estate and Hendricks County Real Estate is currently the fastest growing counties in Indiana and in the Midwest, although the state as a whole is only showing modest growth.

We may have had some of the largest foreclosure rates a few years ago that the country has ever seen. But, in regards to prices, our market has been very stable. You won’t buy a house here in Indy and have the price sky rocket 25% to 35% what it was valued for. Instead, you can find properties priced reasonably low, which you can pay off faster and eliminate debt, and rents are relatively high. Therefor, it is easier to generate income faster when you have less debt. We aren’t the only market like this, mind you, there are a lot of places like this, such as Austin, TX, Kansas City, etc.

The point is to make sure you find the cashflow / turnkey properties that match your goals. If you want to buy a home here in Indy at $125k you will have better tenants who will take care of your property (for the most part) but returns are a little lower than if you bought 2 or 3 properties at $55k each. Again, it really is up to you so always make sure you understand your goals. In the end you can alway contact us and we can make sure you have an exit strategy.

I would love to here what anyone else might think. Please comment below!