MarkInvestor, Other/Just Looking in Indianapolis, IN

What is the current market environment for Multi-Family Property (anything from duplexes to apartment buildings) investment in the Indianapolis area?

Asked by MarkInvestor, Indianapolis, IN Mon Dec 9, 2013

Are rent prices on the rise or decline? Are more families now seeking home ownership in SFRs?

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Answers

5
I just ran a search this weekend and found about 70 within the city...under 225k!
1 vote Thank Flag Link Mon Dec 9, 2013
My opinion: Anyone selling multi-family in this current market is trying to unload an underperforming asset or one that is stressed due to deferred maintenance. You will make more by developing new, leasing up, and selling off to a larger asset/property manager. Choose sites very carefully.
Flag Mon Dec 9, 2013
There is always a demand for both SFR and Multifams.. Investing in them depends on your goals. We are seeing 15-18% cap rates on most duplexes, but anything 4 or more units are tougher to get those kind of cap rates. Seems everyone is in love with saying they own an apartment building so will take less of a return.. Not saying they aren't out there, but the higher performing larger multifams are harder to find. You can obviously get better deals if you are willing to buy homes/multifams that are in need of work.

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.
0 votes Thank Flag Link Sat Dec 28, 2013
Hi Mark,

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.

Thank you.

Avery Garrett, Realtor
Coldwell Banker Kaiser
317-721-2274
soldbyavery@gmail.com
0 votes Thank Flag Link Tue Dec 10, 2013
My opinion: Anyone selling multi-family in this current market is trying to unload an underperforming asset or one that is stressed due to deferred maintenance. You will make more by developing new, leasing up, and selling off to a larger asset/property manager. Choose sites very carefully.
0 votes Thank Flag Link Mon Dec 9, 2013
Two basic criteria need consideration: due diligence with city planning commission; available land. Higher employment rates are in Hamilton Co, so more attractive for investment. Spend time looking in Fishers for possibilities. I do know of some unlisted land and the owners. Feel free to contact me. --Rick
0 votes Thank Flag Link Mon Dec 9, 2013
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