HOUSINGNEWS REPORT
RUST BELT RENTAL TOUR
INDIANAPOLIS (MARION COUNTY) RENTAL TRENDS AVG FAIR MARKET RENT (3-BEDROOM)
ESTIMATED GROSS ANNUAL RENTAL YIELD
RENTAL MARKET PROFILE: DETROIT (WAYNE COUNTY) • Median Home Price: $73,500 (Up 13 percent) • Average Fair Market Rent for 3-Bedroom: $1,329 (up 3 percent) • Potential Gross Annual Rental Yield: 21.7 percent (down 9 percent) RENTAL MARKET PROFILE: INDIANAPOLIS (MARION COUNTY) • Median Home Price: $124,977 (Down 11 percent) • Average Fair Market Rent for -B droom: $1,213 (unchanged) • Potential gross annual rental yield: 11.6 percent (up 11 percent) Sources: ATTOM Data Solutions, HUD
13.0%
$1,210 $1,213
12.5%
$1,084 $1,104 $1,123 $1,158
$1,053 $1,062 $1,034
$1,007 $1,003
12.0%
$963
$935
11.5%
11.0%
10.5%
10.0%
Sources: ATTOM Data Solutions, HUD
9.5%
9.0%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
right direction since she began buying properties there more than 10 years ago. She bought her first single family rentals through traditional channels such as wholesalers and tax sales. “Indianapolis is a unique market in that there’s a lot of off-market inventory. That’s how you get the advantage in markets like that,” Willois said. “It’s a pretty reliable market even in down times.” Willois targets 1,400-to 1,600- square-foot-homes with three bedrooms and two baths. Garages are optional because there is plenty of parking available on the streets, she explained. Willois said her properties are renting anywhere from $500 on the low end to as much as $1,100 a month in the nicest areas depending on the size of the house.
“Indianapolis is a unique market in that there’s a lot of off-market inventory. That’s how you get the advantage in markets like that. It’s a pretty reliable market even in down times.”
JASMINE WILLOIS PRESDIENT, NOTE ASSISTANCE PROGRAM
She does warn, however, that war zone areas still exist in Indy, and investors need to beware when researching where to buy. Buying, rehabbing and selling properties in A and B class neighborhoods has been the focus for BetterTurnKey.com based in Emeryville, California. “We’re pretty happy with the market. You have to be selective as to what neighborhood and where you’re going to go and what returns are going to be,” said Bobby Sharma, managing partner at BetterTurnKey. com, which connects investors with
rental properties in Indianapolis and other Midwestern markets. “Most of our investors are coming from Northern California. It doesn’t make sense anymore to buy rental properties there.” Most of the homes BetterTurnKey.com lists in Indianapolis are three bedroom and one bathroom that are bought through various sources with a goal of providing a discount to investors, according to Sharma.
“We’re buying them off the market through local wholesalers, local tax
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NOV 2018 | ATTOM DATA SOLUTIONS
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