We're your one-stop-shop when it comes to all of your Indianapolis investment needs. 

 

You’ve obviously heard the news…

Indianapolis is a great city to invest in.

There are 5 big reasons why Indianapolis is such an attractive place for REI investing:

  1. Stable housing market
  2. Extremely low unemployment
  3. Population growth
  4. Low cost of living
  5. Solid returns

But, like all new cities where you’ve purchased properties, you have questions:

  • Where’s the best place to invest in Indianapolis?
  • How much cashflow can I expect?
  • What kind of cap rate can I expect?
  • How do property taxes work in Indianapolis?

We’re here to assist you in any way we can.

We can help you purchase homes, provide management, and become a long-term partner in your Central Indiana real estate venture.

Or, we can simply serve as a great resource to learn more about the market.

 


 


Jump to a Topic: 





Click here to network with other  Indianapolis investors!


Buying

When it comes to choosing an Indianapolis rental property, you need more than an agent feeding you listings. You need someone who knows the area, understands the market, and can advise you on the best investment decisions. We provide that. As a fully licensed  brokerage, we will not only act as your agent during the purchase process, but we will also offer our knowledge and expertise to help you find the best investment possible. 

Where to Invest in Indianapolis

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.”  

Like most larger cities, Indianapolis is very diverse. New Call-to-action

We have very old neighborhoods and we have newer neighborhoods. Some areas in Indianapolis offer bettercash flow than others, some offer better appreciation potential, and some neighborhoods are more speculative in nature.

In general, Indianapolis is a great city and so is the rental market. Finding the perfect investment property can sometimes be tricky and, because it’s so big, you’ll need to do your research to find a property that aligns with your investment goals. 

We can help with that. Especially if you're an out of state investor, we can be your boots on the ground and provide you with research and our expert opinion.

 

 


Buying a Tenant Occupied Rental Property in Indianapolis

If you are like most investors out there, my guess is you spend a lot of time reviewing MLS listings.

I’ll also guess that you’ve run across some language in an MLS description that includes a phrase, “Tenant’s rights prevail.”

Now, as you know, or as you should know, Tenants do have certain rights when living in a property, including...

  • The right to quiet enjoyment
  • The right to occupancy
  • The right to a habitable home

In the context of an MLS listing, the term “Tenant’s rights prevail” simply means that, if you buy the home, you are likely inheriting not only the the Tenant, but also the terms of any existing Lease.

Meaning, you can’t, without the mutual consent of the Tenant, automatically make Lease changes, or get rid of the Tenant, just because you own it.

Bottom line: in these scenarios, you are likely going to be stuck with the terms of the Seller’s Lease and stuck with the Tenant, no matter how well, or poorly, they are performing.  


How Much Cash Flow to Expect

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.

So, a common question we receive from investors, is “How Much Cash Flow Can I Expect in Indianapolis?”

Generally, investors that we work with want and expect around $200-$300 per month in cash flow for single family homes.

Calculating cash flow is one of the most important and basic calculations you can use to evaluate rental real estate. It’s basically just understanding two big buckets: Income and Expenses.

Simply put, to calculate cash flow, you use the following:

Cash Flow = Total Income – Total Expenses

Remember, cash flow will not be evenly distributed. When we say that investors here in Indianapolis expect $200-$300 per month in income, we don’t mean that they will receive that amount every single month. Cash flow can vary significantly from month to month and from year to year. 

Cash Flow Calculator & Maintenance/Vacancy Table


What Kind of Cap Rate to Expect

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

Indianapolis investors can expect anything between 8%-10%. Some investors, especially those who are interested in buying in really nice areas, are settling for smaller cap rates.


Cash on Cash Return

Another 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.

Generally, investors in Indianapolis, are shooting for somewhere between 8%-10% cash-on-cash return. But remember, as with cash flow, your cash on cash return can vary significantly year to year. 


The Marion County (Indianapolis) Sheriff Sale

The Marion County Sheriff Sale is simply a foreclosure auction.

It’s not a tax sale. Marion County has those too, but it’s a completely different sale with its own rules.

Basically, the Sheriff Sale is the final step in a lien-holder's foreclosure process. As part of the foreclosure requirement, the lien-holder, generally a bank, puts the property for sale using the Civil Sheriff’s Department.

For an in-depth look at how the Sheriff Sale works, click the link below.


The Marion County (Indianapolis) Tax Sale

The Tax Sale is not to be confused with the Sheriff sale. They are each unique and have their own set of rules and guidelines.  

The Marion County Sheriff Sale, happens once a month and deals with foreclosures across the city. The Marion County Tax Sale, however, only happens once a year, and deals with properties with unpaid taxes.

The Tax Sale auction can be a great opportunity for investors to purchase properties well below market rate, but it’s not without risk. 

For more information on how our Tax sale works, check out the link below!


Understanding Indianapolis Property Taxes

Property taxes are important, and if you’re investing in Indianapolis or you plan to invest here, you need to understand our property tax rules.

I can't tell you the number of phone calls we've taken over the past several years from our customers regarding property taxes. And, trust me, theyOne-Two-Three Tax Cap Rule (1).png are not fun phone calls. 

Me: "Hi Joe Investor. Good to hear from you. How can I help?"

Joe Investor: (very panicked voice) "Jeremy, I just received my tax bill and my property taxes doubled!! What's going on??" 

That's followed by a few minutes of Joe discussing how his cash flow is killed, we have to raise rents immediately, being a Landlord is the worst idea ever, etc. 

The bottom line is that Joe didn't understand how property taxes work BEFORE buying his investment property. And Joe clearly didn't use us to help buy his home, or Joe would have known exactly what to expect.

So, don't be Joe.

Take a few minutes to understand how our taxes work here in Indiana. They are a little different, and depending on how and what you buy, you may have to adjust your budget and your cash flow expectations to account for taxes.



Home Inspections

A question that we hear all the time from Buyers is, "Should I have a home inspection?"

We always advise clients to have a home inspection. We recommend having a home inspection regardless if this is your first time buying a home or you are buying the property as an investment home. Without an inspection, you would have no clear way of knowing if everything is working properly and is up to code.

We can get you set up with a great home inspection company as well as a local lender and title company. 

 


 

T&H Realty's In-House Agent

 

Meet Delanie Shembra!

Her role within our company is to help our current Owners buy and sell rental properties, help new Investors acquire properties, and act as an advisor for all things Indianapolis real estate. 

With an impressive 13 years in the industry, she has been devoted to orchestrating transactions including high end, luxury homes and has also represented many Landlords and Investors on rentals and flips.

She is continually expanding her knowledge and network of contacts to keep ahead of the trends enabling her to provide each of her clients with the individualized service that they deserve. 

 

IMG_1481

Book some time with Delanie

 


 

Why Use T&H to Sell?

As we've mentioned before, we can assist you with the whole process, from beginning to end.  

  • Efficiency: We know your property well because we’ve managed it. Whether we have been your property Sold.jpgmanagers for a short term or a long term, we have been through the property and we know its strengths and weaknesses. This makes it a lot easier to transition from a rental to a sale. There’s no learning curve, and we can get right to work.

    We also have all of your tenant’s contact information, which allows us to simplify the showings and get your property on the market even before a tenant vacates. Any presale work or inspections can also be efficiently managed.
    You can even use your existing T&H Realty account to move funds when you have to pay for repairs or inspections. That makes managing this process a lot easier.

  • Marketing: We will market your home like any other real estate company would. We have access to the MLS and we’ll make sure your property gets the maximum exposure and lots of coverage.

  • Dual Approach: When you work with us, you get a dual approach to the sale and the rental of your property. If for whatever reason your home does not sell, we can list it for rent at the same time. That will minimize your vacancy rate and increase your cash flow. We can run a comparative analysis of your home to help you make your decision and strategize when it’s best to sell or rent.

 

                                            

How can we help with your investment goals?