The best places to invest in the Indianapolis real estate market, a guide for out of state investors

by | Indy Anna, Indiana real estate, Real Estate Investing

The best places to invest in the Indianapolis real estate market, a guide for out of state investors.

Here’s a total breakdown of the Indianapolis real estate market so that as an out of state investor you know first hand the ins and outs and details of the Indy real estate market.

First of all, THANK YOU again for making this channel the number one channel for Indiana real estate on YouTube according google analytics and SocialBlade info for BigReia.com.

The best places to invest in the Indianapolis real estate market, a guide for out of state investors.


Indy Anna Explains…

Where in Indy you’re going to find Class A- Class D areas.

Which of these areas is best suited for buy & hold investing.

Which of these areas is best suited for fix & flip investing as well.

A lot of people ask me about the best areas in Indy to invest.

I get asked a lot about areas in Indy and which ones are best for investing in, mostly by out of state inventors that are unfamiliar with the area.  With this in mind, I wanted to do an area specific overview that would give folks not from here the BEST idea of where to begin looking.

Now each of these areas pretty much has its own set of pros/cons.

So where you decide to go is pretty individually specific based on your wants and needs.  Keep in mind, if we’ve already talked on the phone and you’ve completed the Investor Profile, then I’ve already got your criteria in mind and the leg work portion of it will be taken care of for you.

So I’ll be (and help you get) your “Boots on the Ground”.

This will make that headache disappear for you.  Remember the MOST important part about investing in another area, or even in your own area, is having good BOOTS ON THE GROUND.

A nice lil’ map of Indy.

In the video above I’m going to put a map up of Indy and surrounding areas for you.  This way you’ll basically get the North, South, East and West idea of Indy. There are going to be little pockets here and there that don’t adhere to an overall area, but overall, you can see the locations I’ll be going into further detail on below;

Green = Class A

Yellow = Class B

Purple = Class C

Blue = Class D

Class A central Indiana areas for investors (usually buy and hold)

Class A areas are most often SFR, owner occupied home, or rentals with lower monthly rental yield percentages.  They are lower because the fair market value of the homes are higher on average, and most of the time anyone able to afford a certain threshold of rent (% based) could easily afford to buy (and qualify to do so) without needing/wanting to rent.

These areas usually have higher school ratings, as well as lesser crime and a lesser extent of an overall property damage level from tenants. 

So while there fewer renters in these areas, the quality of renters are usually higher. 

This is why it can be easier in these areas to have a buy and hold investment property and manage it yourself.  Here you’ll get lower returns, yet higher margin of physical safety net/reassurance.

Rents in these areas range from $1200-$2K+ a month.  The fair market value of homes accordingly creates a monthly yield that will be LESS than 1%, which is usually the case in Class A areas.  For more on the 1% rule you can check out my video and post about that.

(usually less than1% monthly rental yield)

Quick note about Buy and Hold:

One unique thing about Indianapolis and surrounding counties is that our property tax rates don’t necessarily hold true to the Class area breakdowns like other States.  Usually Class A areas are higher in taxes, but not in Indy.  A fun Indy fact.

In Marion Co for example property tax rates are just over 1% (for Class A through Class D areas), whereas Hamilton Co (mostly Class A) is at .64%.  That is far lower in each area than other states by comparison.

Avon 46123
Carmel 46032, 46033 (with the expectation of Homeplace which is Class B, 46082)

Homplace is unique in that these properties will be within the Class A area highly rated public school district (Hamilton Co) yet have an “Indianapolis, Marion Co” mailing address. This little ‘burb’ within Carmel is where many of our blue-collar workers came up from KY, TN etc.  decades ago and settled while the great build up of central Indiana took place.

Property values in Home place remain unlike those within the rest of Carmel.

You may have differences by the hundred of thousands, even up to $1M difference between a property in Homeplace and in another area of Carmel.

Fishers: 46037, 46038, 46085

Geist: 46236 

Greenwood: 46142, 46184 

Meridian Hills: 46220, 46240, 46260 (worth noting that some/most of our professional athletes reside here)

Noblesville: 46060, 46061, 46062 

Zionsville: 46077 (worth noting as ‘pill hill’ to locals where numerous professionals in the medical field have historically resided)

Pros to this area would be safer to rent in, with higher quality renters.

Cons would be minimal opportunity for fix & flip, monthly rental yield usually less than or equal to 1%.

So that’s the scoop with Class A areas.

Class B Areas.

Class B areas are usually mixed between rentals and owner-occupied homes.  More duplexes can come into play here as well.  These areas can offer some more of a mix between professionals and blue-collar owners/renters.  Rents in these areas are usually higher in % of fair market value than Class A areas, and in a lot of cases still less of a worry than other areas as far as possible property damage.

With Indiana rentals in these areas, they range from $900-$1400/month on average, with monthly rental yield getting closer to and sometimes beyond 1%.

Bates Hendricks 46201: (area that has gone from Class C in recent years – Fix and Flip area)

Broad Ripple: 46220

Worth noting this area has been more diverse in the arts historically speaking, longer than most areas in Indy, including the ‘Arts & Design District’ in Carmel. This area has some truly unique homes in design.

Brownsburg: 46112

Clermont: 46219

Fountain Square: 46203

(area that has gone from Class C in recent years- Fix and Flip area)

Irvington: 46219

This area has been more of a buy and hold area for some time, historically very stable in singles or young professional couples either renting or owning here, and still remaining family friendly with public family Halloween parades, etc.

New Palestine: 46163

Plainfield: 46168

Southport: 46227

Whiteland: 46184

Pros to these areas are still higher quality renters, yet monthly rental yield increases to 1% on average.

Cons to these areas are slightly higher risk of property damage, and fewer flipping opportunities.

Class C areas in Indianapolis.

Class C areas become more of a 50/50 split than Class A and B areas as far as renters and owner-occupied houses go.  In these locations the schools tend to have lesser quality ratings, but more families (as gentrification transpires) will ultimately (and in time) choose private school settings.

Rents in these areas range from $600-$900 a month on average, getting closer to a 2% monthly rental yield.

Eagledale: 46222
Lawrence: 46216, 46218, 46220, 46226, 46235, 46236, 46250, 46256

Some areas in Lawrence are closer to Class B areas, nearer to Ft. Benjamin Harrison, etc.

Little Flower: 46201 (some gentrification beginning to happen here)

Martinsville: 46151

Mooresville: 46158

Pros to these areas are usually 1%+ monthly rental yield to 2%, and having a steady pool of renters, as well as more frequent opportunities for fix and flips.

Cons are slight downgrade in quality of renters, property damage more likely/possible.

Class D Areas.

To make money in these areas, you really need to know what you’re doing.  A lot of deals here look great in theory but once you factor in the local market realities then you realize that in order to get the high-advertised ROI you’ll need unrealistic conditions.

Class D areas are for the most part rentals, and in these areas of Indy you will find more abandoned homes.  Tenant maintenance here is more required than some areas and using a PM or PM group in these areas is what most investors choose to do.

Rents in these areas are often subsidized, around <$900 a month on average.

It IS worth noting that some of these areas have seen some drastic gentrification in recent years, and with the addition of many resources like Tech 16 park- more on the way.

Brookside Park: 46201 (Fix and Flip area right now and going quickly from Class D to C, B)

Grace Tuxedo: 46201 (slower yet coming along Fix and Flip area, moving into Class C)

Haughville: 46222 (again, gentrification happening here as well to Class C)

Mars Hill: 46241 (basically a giant meth lab that even the IPD stays away from)

Martindale Brightwood: 46202,46218, 46205 (Fix and Flip area right now, moving into Class B

Riverside Park: 44683 (Fix and Flip, quickly into Class B)

Willard Park: 46201

Pros to these areas (especially those mentioned after listed zip code) are ample opportunity for fix & flips and these areas quickly transforming into Class C or Class B areas.

Cons for these areas (mainly those not having further mention) higher likelihood of property damage and more issues with tenants yet still a steady supply/pool of renters.

Good?

So what did we cover?

Where Indy’s Cass A- Class D areas are, Which areas are suited best for buy & hold as well as fix & flip, and the pros and cons of each area. 

Overall, Indy is a very mixed bag of Class A- Class D areas, and it’s having someone here who knows these areas well that will really help you (as the investor) most.

If you’d like to know more in-depth details about these areas, give me a call 317- 969-5619 (Please text first as this is my real number lol) and you’ll help make the universe…

SMILE = )

Want more (brilliantly) EPIC posts of real estate investing and bidness badasssery...?

There is a great post and class on the 38 Ways to Buy Apartment Buildings Zero Down with Pet Policies, and here are some other helpful and EPIC posts... for starters as a real estate investor if you ever want to build a business that makes you 30 grand a month then you MUST do this...

Wanna Create Generational Passive Income Buying Real Estate and Small Businesses?

Here's a class on exactly how to make $30,000 in passive income as an out of state Indy landlord.  Exactly how many Indiana rental properties do you need to make 30 grand a month.  Anna can you help me invest in Indianapolis turnkey real estate investment properties?

There's also a great class Azam did on how anybody can retire in the next 1-2 years with $30,000 a month in passive income by buying and selling businesses zero down.  What about Micro Flipping?  We have a great class on how to start micro-flipping real estate zero down from your house and make $500/day, speed wholesaling 101.

There’s also another great class on how to buy apartment buildings zero down that you can check out as well.  This relates directly to growing income on rental properties.  Speaking of which make sure to check out our epic page on 14 ways to avoid tenants from hell.  Also we have a great post on how to make build a "six figure a month" real estate wholesaling business.

Also here is a post on how I did this and I flipped a house off Zillow for 30.  Also you can check out the post on five steps to flip a house right off Zillow for 40 grand.  You can also check out our other epic post on 57 ways to make money with vacant land.

Here’s another post on how a Hero flipped a house off Zillow and made 40k in a few weeks while he was learning to read.  Also you want to check our post on the EPIC $25 million letter and the copy writing lessons for real estate investors, you'll love it.  Also you can see how ONE letter is making me $9,000 a month.  Also you can check out the post on 101 FREE places to advertise your houses.

Also check out the "SA" class and your REAL chances of create social mobility and income ascension with your real estate business.  Brilliant stuff.  Also there is a great post on the ONLY way you'll ever make 30 grand a month as a real estate investor and/or business builder.  Another brilliant class with a free downloadable Investor Guide is about 19 Ways to Make $10,000 a Month by Helping Tired Landlords.

Plus make sure you check out Azam's post on how to hire a realtor that makes you $10,000 a month... while you sit back with your shoes kicked up on your desk and fingers folded behind your head.  Also there is a great post on how to make five grand a week from putting out signs.

Also we have some great posts on 30 ways to buy real estate with no money down.  That is a two part series so make sure to watch the second part on the 30 ways to buy real estate zero down and with no loans or credit.  I also get questions about our "Epic Flipping" and how to turn $1 into over $25,000 by flipping ordinary items for exponentially high ROI.

And don’t forget our EPIC page on 100 FREE ways to find motivated sellers, we are making the number one page in the world on FREE ways of finding motivated sellers.  Also check out how I find motivated sellers from code violation properties, and also how I make over $1,500 a week giving investors access to that list. 

Speaking of lists, for a list of the "Good People" and My Indy Anna Homeys - this is a FREE list of EVERY possible contact that you'll ever need to build a real estate business in the Indianapolis or the Midwest.

You can also get a LONG list of every contract, piece of paperwork and legal document that you'll EVER need for your real estate business all FREE to download.

Also perhaps the most important class Azam has done is on the "Frequency of Thought" and how to use the laws of quantum physics to rewire your brain, attract brilliance like a lightning rod and be the best version of yourself.  Check out this epic 3-hour class on Quantum Real Estate.

When I first go started I thought wouldn't it be great if somebody put together ONE list of every possible contact that I would ever need to build a passive income with Indiana real estate - or any Midwest real estate?  Well that's exaclty what I did with our “People Page” here it is:

A totally FREE list of every possible real estate professional contact you’ll ever need to do unlimited deals, start and scale your real estate business and create generational passive income with real estate anywhere Indiana or the Midwest.

Stay here at BigReia.com and you’ll become allergic to being an LC and addicted to improving the world and creating Income Ascension and Social Mobility for you and yours… 

Thanks so much!  = )

Make the Universe Smile.

~ Indy Anna
Love (at) BigReia.com
(YES that's my actual Direct Line and I really do answer lol, so please text me first Thx!)

Free Comic Book Reveals:

100 FREE ways to find motivated sellers.