About| Property Search| List Property| Advertise| Contact

RSS Feed Twitter YouTube LinkedIn Facebook Pinterest G+

What You Need To Know Before Investing In Indiana Real Estate

by Marquette Turner Luxury Homes

in Features, Real Estate Radar, Variety

Real estate investing can be incredibly profitable. However, whether you are flipping houses or building a rental property portfolio, just how profitable it is for you depends a lot on knowing your market.

You’ve already know that “all real estate is local.” Each market is a little different. Knowing these subtlties will make or break your investments. Here’s what to know before you start signing those contracts and taking on new properties in Indiana. 

1. How This Real Estate Market Is Different To Others

Indiana is a very different place to invest than New York City or San Francisco or Miami. The mechanics of the transaction may be virtually the same. Though prices, trends, and the tenants may significantly differ if you are used to investing elsewhere.

Make sure you are familiar with what is traditional in the county you invest in as far as who pays for which closings costs. Make sure you know average property values and how much units are really renting for, not just asking for.

Understand that Indiana is very much less of a boom bust market than coastal states. Appreciation here may be slower, though far more protected during downturns in the national housing market.

Real estate at sunset - Photo by Kent Rebman on Unsplash - Marquette Turner Luxury Homes
Photo by Kent Rebman on Unsplash

2. Economic Factors Impacting This Market

Know your major employers and industries. These are the main drivers of the local economy, employment, consumer spending, and how much residents can afford for housing. 

Top industries in IN include:

  • Manufacturing
  • Motor vehicles and auto parts
  • Pharmaceutical products
  • Machinery exports
  • Medical and optical equipment
  • Agriculture
  • Steel
  • Mining

Indiana is considered one of the best states to do business in. Though it does have state income taxes, sales tax and property taxes. 

3. Common Repairs & Property Flaws On Acquisition

Every region of the country can have its own common flaws and repair needs when buying property. In Florida that can be properties which have previously incurred flood and hurricane damage. In California that may be properties which suffered wildfire or earthquake damage. 

Here it is not uncommon to find problems stemming from damp basements, foundation repairs, or pest infestations in crawl spaces. Don’t let these items scare you away. Just make sure you look for them in inspections and have a good handle on the costs involved in curing them.

4. Local Real Estate Laws & Regulations

Most of the liability for real estate investors comes from compliance with industry regulations and landlord-tenant laws.

Be sure you know what you can and can’t do when it comes to screening and denying tenant applicants. Know the required notices you must give to defaulting tenants and the legal process for evictions. Know what licenses you need to have to buy and sell or finance real estate.

5. Where To Get The Best Help

Having big goals and knowing how to identify profitable property opportunities is important. However, all those opportunities and aspirations all come down to the execution and having the team to execute.

It’s no good finding fabulous discounts on house to flip if you don’t have a foundation repair firm you trust and who is available to make those fixes fast. It’s no good acquiring cheap rental properties if you can find someone to help get the property to pass inspections and provide responsive service to renters.

Before you dive into a new market, it is always wise to line up your contractors and vendors first. Those with the best team will have a great advantage over their competition. Meet them and find those who consistently do good work, are reliable in showing up, and can provide quick service in emergencies. 

Summary

Indiana can be a great place to invest in real estate. Whether you are a brand new real estate investor, or are just starting to move into this market from somewhere else, make sure you know the differences. Knowing the drivers of the local economy, how prices trends are different and the common repair and maintenance issues to look for will help a lot. This will empower you to make smarter property picks and more profitable offers. Having a great local team of contractors will also give you a great advantage in championing any challenges and maximizing profit opportunities. 

Leave a Comment

Previous post:

Next post: