What’s all the hype about buying Indianapolis investment properties?
Searching for a strong real estate market to invest in starts with finding certain factors in a given region. If you’re a real estate investor looking for a good location to buy a rental property, we’re sure that you’ve come across a number of reports suggesting to invest in Indianapolis, IN. It’s true – the Indianapolis real estate market continues to be one of the top in the country! This is simply because The Circle City offers property investors key factors needed to succeed in real estate investing.
Keep reading as we break down these factors to prove why you should consider Indianapolis investment properties. You’ll also be given a list of the best neighborhoods where property investors will find profitable Indianapolis investment properties, according to data analytics provided by Mashvisor’s rental property calculator.
Related: How Can You Use a Rental Property Calculator to Buy the Best Investment Properties?
#1 Population Growth
It’s no secret that Indianapolis is a growing city. The city has had a steadily increasing population for years now and it doesn’t look like this trend is about to stop anytime soon. Indianapolis is home to more than 860,000 residents, making it the 15th largest city in the U.S. However, compared to other cities its size like Austin and San Francisco, the Indianapolis real estate market boasts a very affordable cost of living.
What does this mean for property investors? Rental demand! If you’re buying a rental property, the foundation of your return on investment ultimately boils down to having a tenant. If you don’t have a tenant, you don’t have cash flow. Thus, rental demand and occupancy rates are pretty important in real estate investing. Affordable cost of living also means that real estate investors are able to find cheap Indianapolis investment properties to buy and invest in.
Click here to start looking for and analyzing Indianapolis investment properties and find the most affordable ones!
The thing about the Indianapolis real estate market is that people WANT to live there. In fact, Forbes named The Circle City one of the best cities for renters and ranked it in the top 5 cities where you can live well on a $60k salary. Moreover, Indianapolis contains a broad base of higher education and has an urban lifestyle that attracts residents. Thanks to these factors and more, it’s unlikely that Indianapolis investment properties will face a shortage of potential tenants.
#2 Job Growth / Low Unemployment
The State of Indiana is leading the Midwest with the lowest unemployment rate. The Indianapolis real estate market possesses a very large and diverse workforce across a wide range of industries, mainly the tech industry. According to the Indiana Business Review, there’s been a 26.6% increase in technology jobs in Indianapolis over the past decade.
The City is home to some well-known companies like FedEx, Salesforce, and State Farm that are keeping a number of desirable jobs available. Moreover, due to the low cost of living and cheaper taxes, more and more companies are moving their offices and headquarters to Indianapolis, opening up hundreds of new jobs every year! In 2016, over 49 companies chose to expand and open up branches in the area. As a result, the unemployment rate in Indianapolis stands at 3.6% compared to the national average of 4.4%.
With the combination of low unemployment rates, increasing job opportunities, and affordable cost of living, it’s no wonder that the Indianapolis real estate market is attracting new families to move there, providing another reason for a real estate investor to invest in Indianapolis investment properties.
Do you have a free Mashvisor account? Click here to use our Property Finder Tool and find Indianapolis investment properties in a matter of minutes!
#3 Diverse Economy
Investing in Indianapolis investment properties may not be your first thought when you think about your next investment, but one thing you should know is that the Indianapolis real estate market is very dynamic and offers some great opportunities for property investors.
We’ve already mentioned how the tech industry is positively affecting the Indianapolis real estate market, but that’s not all that The Circle City has to offer. The Indianapolis economy is also built around health care, social services, manufacturing, education, and finance. Moreover, you may not expect this, but Indianapolis had 4 years of record tourism and was listed among the top 50 best places to travel to last year. This is good news for a real estate investor thinking of investing in Airbnb Indianapolis investment properties!
Related: Four Things to Consider Before Purchasing an Airbnb Investment Property
This diverse economy is certainly a plus for real estate investors owning Indianapolis investment properties. In real estate investing, a diverse economy is key for long-term stability! It’s another factor that assures high rental demand, occupancy rates, and cash flow.
Indianapolis Real Estate Market Statistics
These numbers were computed using Mashvisor’s rental property calculator. With this real estate investing tool, property investors can analyze any city and neighborhood across the US housing market to find the most profitable investment opportunities in terms of cash on cash return, cap rate, rental income, and Airbnb occupancy rate. Interested in learning more about this tool? Read this: How to Use Mashvisor’s Rental Property Calculator.
Where to Find the Best Indianapolis Investment Properties
Broad Ripple
- Median Property Price: $293,294
- Traditional Rental Income: $1,306
- Airbnb Rental Income: $2,252
- Traditional Cash on Cash Return: 1.27%
- Airbnb Cash on Cash Return: 3.44%
- Traditional Cap Rate: 1.27%
- Airbnb Cap Rate: 3.44%
- Airbnb Occupancy Rate: 49.65%
Near Eastside
- Median Property Price: $167,049
- Traditional Rental Income: $704
- Airbnb Rental Income: $1,517
- Traditional Cash on Cash Return: 1.07%
- Airbnb Cash on Cash Return: 4.83%
- Traditional Cap Rate: 1.07%
- Airbnb Cap Rate: 4.83%
- Airbnb Occupancy Rate: 41.21%
Meridian Kessler
- Median Property Price: $377,043
- Traditional Rental Income: $1,207
- Airbnb Rental Income: $2,886
- Traditional Cash on Cash Return: 0.49%
- Airbnb Cash on Cash Return: 4.81%
- Traditional Cap Rate: 0.49%
- Airbnb Cap Rate: 4.81%
- Airbnb Occupancy Rate: 60.43%
Mapleton-Fall Creek
- Median Property Price: $184,116
- Traditional Rental Income: $710
- Airbnb Rental Income: $1,951
- Traditional Cash on Cash Return: 0.54%
- Airbnb Cash on Cash Return: 5.23%
- Traditional Cap Rate: 0.54%
- Airbnb Cap Rate: 5.23%
- Airbnb Occupancy Rate: 51.58%
Fountain Square
- Median Property Price: $257,033
- Traditional Rental Income: $675
- Airbnb Rental Income: $1,951
- Traditional Cash on Cash Return: 0.09%
- Airbnb Cash on Cash Return: 4.72%
- Traditional Cap Rate: 0.09%
- Airbnb Cap Rate: 4.72%
- Airbnb Occupancy Rate: 44.19%
Downtown
- Median Property Price: $366,857
- Traditional Rental Income: $1,340
- Airbnb Rental Income: $2,386
- Traditional Cash on Cash Return: 0.96%
- Airbnb Cash on Cash Return: 3.34%
- Traditional Cap Rate: 0.96%
- Airbnb Cap Rate: 3.34%
- Airbnb Occupancy Rate: 44.25%
To analyze and find the best Indianapolis investment properties in any neighborhood of your choice, click here!
The Bottom Line
There are a lot of strong real estate markets across the US, and thanks to the above factors, the Indianapolis real estate market is one of them! If you’re a real estate investor interested in buying Indianapolis investment properties, make sure to sign up with Mashvisor and start your search. Our rental property calculator lets you analyze different investment properties to find the best ones yielding a good return on investment. If you don’t want to waste time analyzing, our property finder tool automatically gives you a list of investment properties that have the highest projected returns in your city of choice depending on your budget, turning your property search into 15 minutes!
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