Top 3 reasons to Buy and Hold Investment Real Estate in Indianapolis
What are the top 3 reasons to buy and hold investment real estate in Indianapolis?
1. Cash flow!
2. Cash flow!
3. Cash flow!
Indy's ranking on the "Job Factor", the "Affordability Factor", and the "Cost of Living Factor" should have the buy and hold real estate investor dancing in the streets!
Why.. .? These factors net Great Cash Flow.
These factors form the underlying foundation as to why surveys such as FinestExperts.com (who after analyzing over 10,000 real estate markets to identify the most suitable places for real estate investment) ranked Indianapolis #7 in real estate investment markets for 2010.
Let's go through it.
The Job Factor
Profitable rents are tied to stable employment. So how does Indianapolis stack up? Well for starters in January 2008 Forbes rank 6th on its list of "Best Cities for Jobs". That same year CNBC.com ranked Indiana as one of America's Top States for Business in 2008.
That was 2008, you say. A lot has changed since then. We had this huge recession. What about now?
Check this out:
January and February 2009: Chief Executive Magazine ranked Indiana "Best State for Business" in the Midwest and 11th nationally. Indiana also ranked:
April 2009: The Indianapolis Economic Development Inc. (IEDI) reported a 33 percent increase in new jobs in the first quarter, compared to the same period in 2008.
December 2009: While unemployment exceeded 10% across the country in Indianapolis held its ground around 8.2%.
January 6, 2010: Indianapolis secured commitments for more than 11,000 jobs The Indianapolis Economic Development, Inc. (IEDI), announced that the City secured commitments for 11,135 jobs and $157 million in private investment from 45 companies in 2009, resulting in one of the best year-end totals of the decade.
To illustrate this further, the Indianapolis economy offers a diverse business climate unlike other cities that rely on one large employer or one main industry. The following summarizes Indy's major industries and employers:
Life Sciences: Eli Lilly and Company, Roche Diagnostics Corporation, Covance Inc., Dow AgroSciences LLC
Healthcare: Clarian Health Partners (including Methodist Hospital, Indiana University Hospital and Riley Hospital for Children), Community Health Network (including Community Hospital North and the Indiana Heart Hospital), St. Vincent Hospital and Health Center, St. Francis Hospital and Health Center
Transportation & Logistics: FedEx, United Parcel Service (UPS), Hewlett Packard
Education: Indianapolis University-Purdue University at Indianapolis
Manufacturing: Rolls-Royce
Insurance: WellPoint Inc., Conseco
Communications: AT&T
Motorsports: Indianapolis Motor Speedway, Impact Racing, Jack Elrod Company, Just Marketing International
Banking: Bank America, Chase, Fifth Third Bank
The Affordability Factor
Closely related to the Job Factor and one reason Indianapolis is a great place for business is its affordability.
CNN/Money and Forbes recently named Indianapolis "The #1 Most Affordable Housing Market in the US". In Indianapolis, 91% of homes sold in the third quarter of 2008 were affordable to families earning the area's median household income of $65,100.
In 2009, Apartments.com, workg in conjunction with CBcampus.com-CareerBuilder's, ranked Indianapolis as the most affordable city for recent college graduates.
This research was based on the ranking of the top U.S. cities with the highest concentration of young adults (age 20 to 24) in 2006, inventory of jobs requiring less than one year of experience, and the average cost of rent for a one bedroom apartment.
A couple additional notes about college graduates:
They typically rent.
According to Indianapolis Economic Development, "The city is at the center of a higher education corridor producing tens of thousands of engineering, life science, advanced manufacturing, management, and logistics graduates annually".
Another important aspect of Indy's affordability: Indianapolis fits your pocketbook!
Whether you have limited funds or deep pockets, there is a property to meet your financial goals.
If you have deeper pockets there are higher priced single family homes or multi units available (and everything in between)!
The Cost of Living Factor
Closely tied to Affordability (and what drives affordability and indirectly Jobs) is the Cost of Living factor. A low cost of living has the potential to provide employers with good labor at low cost which in turn can give business an advantage. This business advantage can mean more employment with means more renters for you.
Low cost of living also means labor and materials are affordable for property rehabbing and maintenance. Low cost of living also translates to:
So how does Indy rank with respect to Cost of Living?
How these factors work in your favor as a
Buy and Hold Investor
Economic stability is everything. It means there are Jobs which means:
You have renters.
Your renters have jobs.
The rent gets paid.
Affordability and Low Cost of Living mean:
And when it's time to sell, it's an easy deal for you if you decide to sell:
You may have a buyer already living in the property. Because they have a rental history AND an income, they may qualify for first time homebuyer programs.
You purchased the property at a low price; not only are there profits to meet your selling criteria, there is ability to offer an affordable price to your renter when they buy.
NET NET: These factors net Great Cash Flow!
A couple addition facts you might find of interest about the city:
"While the city lays claim to 10 world-class sports venues, that is just a fraction of its cultural institution tally: 14 museums, 21 galleries and 25 performing arts centers and theaters". The Washington Post, May 28, 2008
"...But more recently the city has sped beyond the raceway to truly come into its own. Surprisingly cosmopolitan, Indianapolis is home to a variety of restaurants, nightclubs, hotels and family-oriented venues. "Successful Meetings, August 2008
Indianapolis, Indiana is truly a real estate investor's hidden gem! Ready to cash in on this "Secret Jewel"?
We have several properties available - rehabbed, rented (with property manager in place) AND cash flowing!
Visit our website (www.homesitinvestment.com), send us an email (info@homesiteinvestment.com) or give us a call (800-229-4019) !
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