Indiana is a landlord-friendly state with great legal protections for landlords. There are no rent control laws in place, so landlords are free to increase rent so long as they provide 30 days' notice.
Landlords can also charge security deposits and late fees. Evictions can happen ten days after non-payment, so tenants are more likely to work with landlords to make up for delinquencies.
Indiana laws and regulations are pro-business, offering incentives and support for small businesses. They make it easier for investors to manage rental properties, leading to more cash flow and higher DSCRs.
Indiana also has a bustling population and was ranked number 5 in CNBC's 2023 best infrastructure list. Most residents of Indianapolis rent, creating a huge market for investors.
Indianapolis alone boasts a strong economy with low unemployment and high job growth. Several Fortune 500 companies call the city home, and the technology and life science industries are thriving.
Many young professionals are flocking to the cities for job opportunities, and they need to find affordable places to rent. Let's not forget the college students in Indianapolis, who are a perfect market for rental investors seeking to make rental income from apartments.
Indiana hosts employers from various industries, with the current top five being Healthcare, Logistics and Transportation, Manufacturing, Public Sector, and Technology.
With an adjusted gross income tax for corporations of 4.9%, it's little surprise that business owners are putting down roots in Indiana.
World Population Review reports that Indiana's population as of September 2023 was at an all-time high of 6,852,542, with a growth rate of 0.29%.
Growing populations are always a good indicator of a solid housing market, and newcomers mean more renters— both for residential and commercial properties. Young families just starting out tend to prefer renting as they build their income, which means that single-family homes are an excellent target for Indiana DSCR loans.
Mashvisor reports that there are currently 9,699 homes for sale in Indiana, with a median property price just shy of $370,000.
According to Zillow, Indiana home values are up 4% from last year, with an average value of $231,519. Their Market Overview also reveals:
In terms of particular cities, Zionsville has the highest Zillow Home Value Index at $577,280 and an average rental income of $1,304.
Indiana DSCR loans are perfect because, with the more common-sense property limits that DSCR lenders prefer, you'll be able to quickly develop a very healthy portfolio that satisfies your financial needs. Properties move incredibly quickly here; given that conventional loans have such a long approval rate, your preferred investment may be long gone by the time you can get financing.
Indiana's tourism industry is performing well; data from June 2023 shows spending up to the same levels seen in June 2019, pre-pandemic. This data follows a strong report in May 2023 regarding Indiana's economic rebound. The Indiana Destination Development Corporation is also allocating funds to more marketing programs to attract more visitors.
With plans to host a Taylor Swift concert in 2024 and the ever-popular Indianapolis 500, aka "The Greatest Spectacle in Racing," the tourism industry shows no signs of slowing down.
Indiana is filled with fun and educational activities for families with children of all ages. Indianapolis hosts a wealth of museums, including the Children's Museum of Indianapolis, while families looking for outdoor excursions could check out the Indiana Dunes National Park or the Wellfield Botanical Gardens.
Many couples travel to Indiana to experience their vast wineries, quaint inns, and exquisite casinos. Bed & breakfasts are another popular choice, particularly in Wabash and Michigan City. However, plenty of lovebirds always appreciate the luxury available in Indianapolis - especially because this comes at a much cheaper price than other Midwestern getaways like Chicago.
A DSCR loan can help you manage various properties, such as wedding venues and hotels, to take advantage of this thriving market.
Boasting a simple, streamlined loan process, we have provided over $2.5 billion in funding for debt service coverage ratio (DSCR) loans across the United States to qualified borrowers. We can help you access the funds you need to buy excellent properties with a strong net operating income - no income verification is required.
If you are buying a single-family home to rent out, rely on us to develop your Indiana real estate presence with a DSCR mortgage.
Check out some of Visio Lending's recently closed DSCR loans in Indiana.
Indianapolis, IN
South Bend, IN
Gary, IN
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Visio Lending is the nation's premier lender for buy and hold investors offering, long-term loans for SFR rental properties, including vacation rentals.