We work with a lot of out of state investors, and we do a lot of buy, rehab, and rent/sale both for our clients and ourselves.
You need to get with someone who knows the market and is actively investing in it. Check your crime statistics, check multiple sources for comps both on rent and sales... Looks like you are Indy, so shop around a bit, and ask for references. Ask to see some of their properties they are renting or have recently done work on.
A good website for crime statistics is http://maps.indy.gov/MapIndy/Index.html?theme=crimeviewer. We generally plug in a quarter mile radius(1318 ft) and 6 months worth of history for every house we are looking at. It really depends on your goals for what kind of investments will suit your needs.
There is, and will continue to be, a high demand for rentals in the Indianapolis area. Generally, rent prices are increasing, depending on location and condition.
Anything that is not commercial multifamily, ie duplexes-quad plexes, seem to get a lot less exposure than SFH's, and Apartment buildings.
There are some good deals coming down the pipe in commercial multi-family as well. Quite a few properties around town are currently owned and managed by the bank, which has been dumping money into to them to bring the up to date on service and more modern.
I would be happy to help you find the right properties. Feel free to contact me anytime.
Avery Garrett, Realtor
Coldwell Banker Kaiser