Indiana Rental Property, Mortgages for Real Estate Investors

Indiana may not be the most popular state in the national media, but could this make this state one of the most appealing to buy and hold rental property investors?

Indiana: Little State, Big Opportunity

According to Wikipedia Indiana is one of the smallest states in the country, and its leading cities are also of modest population sizes in comparison to many famous US cities. However, Indiana does hold some little known advantages which could serve income property investors very well over the next decade.

Indiana has a relatively young population with a median age of 37 years old. The state escaped the worst of the housing crash, and remains strong economically thanks to a strong manufacturing industry, which continues to attractive companies willing to relocate here to take advantage of the highly skilled workforce.

Indiana is very affordable in terms of real estate which makes it a solid addition to the portfolios of long term hold, income seeking investors.

Few are also aware that Indiana boasts some of the fastest growing population centers including Hendricks, Johnson Dearborn and Hamilton County. Fishers, IN has seen a 100% population boom since 2000.

Real Estate Trend Watch

In contrast to much of the rest of the nation where investors have rapidly inflated values and have depleted inventory so far that sales volume is declining, IN is in growth mode.

The Indiana Association of Realtors (IAR) reports consistent month over month home sales volume growth in 2014. The median home sales price rose to $134,000 in June 2014. New listings grew by 5.6% in June.

IN home listing inventory is shrinking, but remains at just over 7 months’ supply, at 44,098 units as of mid-2014 indicating a strong pool to pull from

Year over year almost 30 IN counties realized double digit home price growth. This was led by Switzerland County with an increase of 222.3%. Switzerland, Pulaski, and Parke County all experienced 200% plus growth in home sales volume for the 12 months to June 2014

Neighboring states Illinois, Michigan and Ohio have been attracting international attention from real estate investors seeking great yields on single family home rentals with appealing outlooks for asset value growth. Indiana has avoided some of the crazed gold rush mentality, creating more value for savvy, forward thinking investors.

Indianapolis, IN based mortgage lender Rental Home Financing is now offering residential mortgage loans for bulk acquisitions, and refinances of portfolios to expand. Low rates, blanket mortgage funding, and non-recourse options could give Indiana investors a superior edge for cash flow and total returns.