Bank Owned Homes in Indianapolis
There’s something about having homes available in the $10,000–40,000 price range, which brings out the investor in everyone. Naturally, there are some great investments in the mix of bank owned homes in Indianapolis; however, there are many, which are not.
I was out this week with a client who is looking for investment opportunities here in Indy and we looked at 22 homes. Our day took us into many neighborhoods north and east of downtown and included only duplex homes. A disturbing statistic was the number of homes which were recently bought where someone had started the repairs, then the home was foreclosed on. These homes are not for the faint of heart nor those without resources to finish the job.
My client is a contractor who knows what he is looking for, can do the work himself, therefore, eliminating the expense of hired help. Except for me of course. He relies on me to let him know the market value after rehab, rents in the area, which neighborhoods will bring him the most return on his investment and to negotiate the best price initially. I love working with investors like him.
On the other side of the spectrum of investors are those who think they can buy cheap and flip for an immediate profit. The initial price sounds good, but when they have to hire out most of the work, the profits are eaten up fairly quickly.
Some of these homes are not “flip” homes.
They are good long term investments which will make great rentals. Investing in real estate offers a great return when all factors have been considered. It can also drain the finances of the ill advised investor who has not considered all the cost. The majority of the bank owned homes we looked at can not be financed with traditional financing, eliminating the person who wants to buy, fix and live in the home.
So, while Indianapolis does offer some great homes at great prices, an informed home buyer or investor needs to do their homework first.