Consider the following scenario:

You decide to buy a rental home and officially enter the Wonderful World of Landlording.

Five years later, after reviewing all of your financial information, you realize that you essentially broke even - from a cashflow standpoint - on the investment.

Meaning, while the investment didn’t put any additional cash into your pocket at the end of five years, you weren’t required to put any additional cash into the investment either. So, basically, your rents covered your expenses.  

Is this a bad thing?

Not necessarily.

We take a lot of calls from investors who are interested in the Indianapolis real estate market. Inevitably, one of the first questions they ask is:

“Where Should I Invest in Indianapolis?”

The answer is: “It all depends on your investment goals.”  

 Indianapolis is a city where many investors have decided to invest because it’s considered a “Cash flow Market.” We’re not a market, like in coastal cities, for example, that sees dramatic increase in property values, but we are considered a stable market that produces cash flow.

 A common question we receive from many new investors to the Central Indiana market is: What type of cash on cash return should I expect in Indianapolis?

As you probably know, cash-on-cash is simply the annual pre-tax cash flow of a property divided by the actual cash invested.

We work with a lot of investors throughout the United States and throughout the world. A question we receive from many new to the Central Indiana market is: What kind of cap rate should I expect in Indianapolis?

As most of you know, the cap rate simply measures the annual net income of a property divided by the purchase price.

 Indianapolis rental property management is essential for many reasons, and the ability to effectively market your home is one of the main reasons you would choose to work with a property manager.

Every property management company will tell you how great they are at marketing your home. It seems like most property managers don’t have a firm grasp on what it really takes, however.