investing real estate out-of-state If you read yesterday’s post, you got a refresher on what makes a market worth shopping in (when it comes to real estate). One of Hipster’s favorite markets is Indianapolis. This racing capitol has the value, quality and convenience that Hipster wants when we buy real estate or hook others up with great deals. So – what makes Indianapolis such a shopper-friendly market?  Trulia.com notes that Indianapolis has seen a whopping 11% increase in rental rates in the last 12 months and has earned the title of the #1 Most Stable Real Estate Market in the Country! Indianapolis has the properties, hospitals, universities and the stable tenant pool investors want.

Today’s single family home in Indianapolis is a winner. Why? It’s fully renovated and you close with vetted tenants in place.  Not only that – it comes with a one year scope of work warranty. Talk about a sound investment! Way to go, Indiana!

Location: Indianapolis,IN. Built In: 1966 (fully renovated)

Purchase price: $65,000 (not a foreclosure, normal sale)

Property info: 3 bedroom, 2 bathroom, 1,217 square feet

Income

Monthly rent collected: $825

Expenses

Monthly expenses

Property taxes: $83

Insurance: $46

Property management fees: $83

Monthly expenses (conservatively estimated)

Vacancy (7%): $58

Repairs (5%): $41

Total Monthly Expenses- $311

Net Income = Income – Expenses = $514

Advanced Numbers

Cap Rate =

annual net income (non-inclusive of mortgage payment) / purchase price = 9.49%

Cash-on-cash return =

Depends on your leveraging.

If you are interested in this property or seeing others like it, contact Melissa at melissa@hipsterinvestments.com.

Comments
  • Brett
    Reply

    This looks exactly how I would like to start my investing! How do you know what micro-area to buy a rental in an area like this one? The greater metro area seems to be too affordable to just buy to a novice like me!

    thank you!

    • Ali
      Reply

      Hi Brett! There are teams on the ground that specialize in knowing what micro-areas to buy in. I can help you with all of that. Cool, reach out anytime and I can help get you started!

      • Brett
        Reply

        Thank you Ali! Your site is above and beyond! I’m actually near your neck on the woods in Encino… I think you know why i’m looking out of state Ha!!! Thanks again for your offer!

      • AMAR'E KNIGHT
        Reply

        ali how are you find your site on biggerpockets.com
        was looking for a way to finance realestate
        but im contacting your about micro-areas
        here in Indianapolis is there anyway you could give me a list of the best areas to do investing in

        • Ali
          Reply

          Hi Amar’e, thanks for reaching out! I would need to talk to the seller in Indy to get specifics on what micro-areas those are in. I can certainly do that, just let me know.

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