Profits from Fix and Flip Houses in Indiana Now

Indiana Fix and Flip Market Overview for 2025

The Indiana fix and flip market stands out in 2025 as one of the top profitability zones in the Midwest. According to ATTOM Data Solutions, Indiana’s average gross flipping ROI hit 61.7% in Q1 2025, driven by affordable entry prices and steady buyer demand. The median home sale price statewide hovers around $242,000 (Indianapolis MLS, April 2025), marking a 4.3% annual increase. Inventory remains moderately tight with about 2.2 months’ supply, particularly in metro areas like Indianapolis (46201, 46203), Fort Wayne (46805), and South Bend (46615).

• Median Indiana Home Price (2025): $242,000
• Median Days on Market: 29 days (statewide average, Q2 2025)
• Typical Rehab Construction Costs: $35-65/sq ft (full cosmetic flip), $90-120/sq ft (full gut)
  Material pricing is up 8% over 2024 due to supply chain adjustments.
• National Average Flip ROI: 55.2% (compared to Indiana’s 61.7%)

Key Market Insight: Indiana’s stable economy, landlord-friendly laws, and lower-than-national average purchase prices make it a perennial favorite for investors seeking consistent margins in 2025.

Fix & Flip Strategy Deep Dive: Indiana 2025

Step-by-Step Overview

1. Source below-market distressed properties (target 60-75% of ARV all-in, including rehab).
2. Conduct thorough property/market analysis: Confirm ARV using at least three nearby comps sold within the last 90 days.
3. Build an accurate budget ($38,000–$65,000 per flip on average for Indy SFRs), include 10-15% contingency.
4. Obtain hard money/pre-approval and close quickly (average hard money rates in Indiana are 9.75%-12.5% with 2-3 points, 6-12 month terms).
5. Renovation phase (45-75 days for cosmetics, 90-120 days for full gut projects).
6. Pre-list marketing, staging, and MLS listing.
7. Sell and close (Indiana average: 20-35 days from listing to sold).

Profit and Cost Examples

• Typical SFR Purchase Price: $110,000–$170,000
• Average ARV: $210,000–$290,000 (Indianapolis, Fort Wayne, Evansville)
• Renovation Costs: $38,000–$65,000 (including permits, labor, and 10% contingency)
• Closing/Carrying Costs: $12,000–$18,000 (includes interest, insurance, utilities, taxes, agent commissions)
• Expected Net Profit Per Flip: $31,000–$58,000 (after all costs & commissions), 25–32% net ROI

Property Type Analysis

Single-Family Homes

• Best Neighborhoods (Indianapolis): Bates-Hendricks (46225), Fountain Square (46203), Irvington (46219), and Garfield Park (46205).
• Price Points: Buy under $160,000, ARV $225,000–$290,000.
• Condition Criteria: Dated interiors, original kitchens/baths, minor to moderate foundation/electrical updates preferred for speed/profit.

Condos & Townhomes

• Emerging Markets: Downtown Indianapolis (Mass Ave, 46204), Carmel (46032), and Noblesville (46060).
• Typical Purchase Price: $140,000–$210,000
• Market Consideration: Lower maintenance costs, but smaller pool of buyers—especially in winter.

Small Multi-Family (Duplex, Triplex)

• Hot Neighborhoods: Near Eastside (46201), Bean Creek (46203), North Highlands (Fort Wayne, 46808).
• Typical Duplex Price: $155,000–$220,000, ARV $270,000–$325,000 (after both units are updated).
• Key Strategy: Keep renovation costs per door under $45K for optimal ROI.

Local Indiana Market Intelligence

• ZIP Codes to Target:
  1. 46201 (Indy Near Eastside): Rapid gentrification, buy under $130K, ARV $195K–$235K
  2. 46203 (Fountain Square/Bean Creek): Buy under $175K, ARV $265K–$305K
  3. 46805 (Fort Wayne Northside): Buy $95K–$140K, ARV up to $215K
  4. 46615 (South Bend River Park): Buy under $100K, ARV $165K–$195K
  5. 46032 (Carmel): Buy $180K–$240K, ARV $320K–$370K
  6. 47714 (Evansville): Buy under $85K, ARV $145K–$185K
  7. 46142 (Greenwood): Buy $190K–$240K, ARV $320K+
• Contractor Costs: General contractor labor averages $38–$55/hr; electrician $75–$110/hr; plumber $65–$105/hr. Expect higher in Carmel or Zionsville.
• Permits: Required for structural, electrical, plumbing, and roof. Expect $1,400–$2,200+ total in Indianapolis for a full cosmetic rehab. (Apply via city’s DBNS.)
• Market Development: Watch Windsor Park and Riverside for ongoing revitalization activity and new buyers entering the market.

Financing Landscape: Indiana Hard Money & More

• Top Indiana Hard Money Lenders (2025):
  • RCN Capital (9.99–11%, up to 90% LTC, 70% ARV, 12-mo terms)
  • Lima One Capital (10–12%, 2–2.5 points, up to 90% LTC/70% ARV)
  • Do Hard Money (100% rehab financed, up to 70% ARV total, 12-month)
  • Kiavi (formerly LendingHome) (10–11.5%, 1.5–2.5 points, fast close)
  • Indianapolis Private Capital (local, 9.5–10.75%, 2 points)
• Loan-to-Cost (LTC): 85–90% purchase, 100% rehab common with collateral/strong experience.
• Alternative: Private lenders via Indiana Real Estate Investors Association (IREIA) or local networking groups. Rates typically 9–11% with more flexible terms.
• Minimum Requirements: 620+ credit, proof of funds for down payment/closing, scope of work, and experience letter recommended for best terms.

Step-by-Step Fix & Flip Process in Indiana (2025)

1. Define investment criteria and secure proof of funds/hard money preapproval.
2. Source on/off-market properties (MLS, wholesalers, auctions, REO/bank properties).
3. Run comps (sold within 0.3 mi, last 3-6 months, similar size/bed/bath).
4. Perform detailed due diligence: Foundation, roof, HVAC, major mechanicals check (consider professional inspection, ~$350–$500).
5. Submit offer and negotiate price/terms (target 70% of ARV minus repairs rule).
6. Finalize financing, close via local title company (Indiana title/escrow costs average 1% of purchase price).
7. Pull all necessary permits for work from city or county.
8. Hire and schedule contractors, set weekly check-ins (use detailed scope/SOW, 10-15% retainer only).
9. Order materials early (kitchens/baths 2-4 week lead time in 2025 due to supply chain).
10. Conduct renovations, monitor budget/schedule closely. Inspect at each project milestone.
11. Stage, photograph, and list property on MLS. Market across Zillow, Realtor.com, local social media.
12. Negotiate sale, vet buyer funding, coordinate closing, and track days on market for future improvements.

Due Diligence Checklist

• ARV verified via recent local comps
• Full inspection on structure, roof, plumbing, electrical & mechanicals
• City/county permit requirements checked
• Logistics on material delivery (appliances, cabinets, major fixtures)
• Estimate marketing and closing timelines upfront

Indiana Fix and Flip Success Example: Real Numbers for 2025

• Market: 46203 (Fountain Square, Indianapolis)
• Purchase Price: $143,000
• Renovation Budget: $54,000 ($40/sq ft x 1,350 sq ft + 10% contingency)
• Total All-In Cost (incl. closing, holding): $207,500
• ARV (After-Repair Value): $290,000 (based on 3 recent comp sales)
• Sale Price Achieved: $296,500 (sold 21 days on market)
• Gross Margin: $89,000
• Total Costs (incl. agent commissions): $38,880 (closing/holding: $11,200; agent: $17,800; staging/marketing: $4,800; misc.: $5,080)
• Net Profit: $50,120 (~24.2% ROI in 97 days total from acquisition to closing)

Market Timing: Off-season flips (Oct-Jan) typically take 2-3 weeks longer to sell, but material/labor is available at a premium and labor scheduling is easier.

Need capital? GHC Funding offers flexible funding solutions to support your business growth or real estate projects. Discover fast, reliable financing options today!

Test Your Expertise: The Complexities of the 1031 Exchange

As a sophisticated real estate investor, you understand that the 1031 Exchange is a cornerstone strategy for tax deferral and wealth accumulation. But beyond the basics, the intricacies of the 1031 Exchange rules can pose significant challenges. This quiz is designed to test your in-depth knowledge and highlight critical nuances that separate casual investors from true experts in 1031 Exchange transactions.

Instructions: Choose the best answer for each question.

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Page 1 of 5

Question 1: Understanding "Like-Kind" in a 1031 Exchange

Which of the following scenarios most likely qualifies as a like-kind property exchange under IRS Section 1031, allowing for 1031 Exchange tax deferral?

a) An investor exchanges a portfolio of publicly traded REIT stocks for a commercial retail building. b) An investor exchanges their primary residence, used for personal living for 15 years, for a duplex intended for rental income. c) An investor exchanges raw land held for appreciation in Texas for a stabilized apartment complex in Florida, both held for investment. d) An investor exchanges a classic car collection (personal property) for a single-family rental home (real property).

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Question 2: Navigating the 45-Day Identification Period for a 1031 Exchange

An investor sells a multi-family property on June 15th for a 1031 Exchange. According to the strict timelines, by what date must they identify their replacement properties to comply with the 1031 Exchange requirements?

a) July 30th of the same year, as the 45-day period includes weekends and holidays. b) August 29th of the same year, allowing for an extra 45 days if needed. c) December 12th of the same year, aligning with the 180-day completion period. d) January 1st of the following year, if they plan to file for an extension.

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Question 3: The Role of a Qualified Intermediary (QI) in a 1031 Exchange

Why is the engagement of a Qualified Intermediary (QI) absolutely critical for the validity of a 1031 Exchange?

a) The QI provides investment advice and helps the investor choose the best replacement property for their 1031 Exchange strategy. b) The QI acts as a liaison with the IRS, directly negotiating tax liabilities related to the 1031 Exchange process. c) The QI holds the proceeds from the relinquished property's sale, preventing the investor from having "constructive receipt" of funds, which would invalidate the 1031 Exchange. d) The QI provides legal and tax advice to ensure the 1031 Exchange is perfectly compliant

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Question 4: Understanding "Boot" and its Impact on a 1031 Exchange

An investor sells a commercial building with $500,000 in equity for a 1031 Exchange. They purchase a replacement property for $450,000, effectively reducing their debt by $50,000. What is the tax implication of this scenario within the 1031 Exchange framework?

a) The entire 1031 Exchange is disqualified because the investor "traded down" in value. b) The $50,000 in reduced debt is considered "boot" and will be immediately taxable as partial gain in this 1031 Exchange. c) There are no immediate tax implications, as the primary goal of the 1031 Exchange is only about the "like-kind" nature of the properties. d) The investor can defer the $50,000 as long as they pay off other personal debts with the funds, still qualifying for a full 1031 Exchange.

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Question 5: Advanced 1031 Exchange Strategies & Flexibility

An investor aims to sell a highly appreciated single-tenant retail property and replace it with multiple smaller, diversified multi-family units to spread risk. Which of the following 1031 Exchange identification rules best allows for this diversification strategy, maintaining eligibility for a 1031 Exchange?

a) The "Three Property Rule," where the investor can identify up to three properties of any value, regardless of the relinquished property's value, for their 1031 Exchange. b) The "200% Rule," allowing identification of any number of properties, provided their aggregate fair market value does not exceed 200% of the relinquished property's value for the 1031 Exchange. c) The "95% Rule," which states that if more than three properties are identified, the investor must acquire at least 95% of the aggregate value of all identified properties to qualify for the 1031 Exchange. d) All of the above are valid identification rules within a 1031 Exchange, offering flexibility for various investment strategies.

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The Ultimate DSCR Loan for Rental Property Quiz

Are you looking to expand your real estate investment portfolio? A DSCR loan might be the perfect tool to help you achieve your goals without relying on traditional income documentation. Test your knowledge with this quiz to see if you're ready to master the intricacies of a DSCR loan for rental property.

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Page 1 of 5

What is the primary factor a lender considers when approving a DSCR loan for rental property? A) The borrower's personal income and debt-to-income (DTI) ratio. B) The borrower's credit score and employment history. C) The property's potential rental income compared to its monthly expenses, known as the Debt Service Coverage Ratio. This is the key metric for a DSCR loan for rental property eligibility and approval. D) The total value of the borrower's existing investment properties and personal savings.

Page 2 of 5

How does a DSCR loan for a rental property differ from a conventional mortgage for a personal residence? A) A conventional mortgage requires a DSCR calculation, whereas a DSCR loan for a rental property does not. B) A DSCR loan for a rental property primarily focuses on the property's cash flow, allowing investors to qualify without traditional income verification, unlike a conventional mortgage which is based on personal income and liabilities. C) A conventional mortgage has a higher interest rate and stricter requirements than a DSCR loan for a rental property. D) A DSCR loan for a rental property is only available for commercial properties, not residential rental properties.

Page 3 of 5

What is an ideal Debt Service Coverage Ratio (DSCR) for a lender when evaluating a DSCR loan for a rental property? A) A DSCR of 0.75, indicating the property generates 75% of the income needed to cover its debt service. B) A DSCR of 1.00, meaning the property's income exactly equals its debt service. C) A DSCR of 1.25 or higher, as this indicates the property's income is greater than its expenses, making it a strong candidate for a DSCR loan for a rental property and providing a buffer for unexpected costs. D) A DSCR of 2.00, which is the standard minimum for all investment properties, regardless of location or market conditions.

Page 4 of 5

Which of the following expenses are typically included in the calculation of the Debt Service Coverage Ratio for a DSCR loan for a rental property? A) The property's mortgage payment (principal and interest), property taxes, and insurance, which are the core components used to determine if the property can support the debt. B) The property's mortgage payment, property taxes, insurance, and the borrower's personal credit card debt. C) The property's monthly rental income and all utility bills, regardless of who pays them. D) Only the principal and interest payment of the loan, as other expenses are not considered in a DSCR loan for a rental property calculation.

Page 5 of 5

Who would most benefit from using a DSCR loan for a rental property? A) A first-time homebuyer with a W-2 salary and a high debt-to-income ratio, who is looking to purchase a primary residence. B) A seasoned real estate investor with multiple properties who wants to expand their portfolio without using personal income to qualify, making a DSCR loan for a rental property the ideal financing solution for their needs. C) Someone looking to finance a primary residence with a low down payment and a government-backed loan. D) An individual with a very low credit score who cannot qualify for any other type of loan.

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Common Pitfalls & Expert Tips

• Underestimating plumbing/electrical: Always get a licensed inspection before purchase.
• Over-improving for the block: Match finishes to recent sales—avoid luxury upgrades in blue-collar areas.
• Permit delays: Submit applications early; check for historic overlays in key Indy neighborhoods (may affect timelines and costs).
• Contractor management: Weekly progress check-ins, milestone payments only.
• Exit plan: Always work with multiple exit strategies (resale/rent/refi) in case the market shifts.

Start Your Next Fix & Flip in Indiana—Now

With gross margins well above national averages, consistent end-buyer demand, and affordable entry points, Indiana remains a powerhouse fix and flip state heading into 2025. Focus on the neighborhoods and strategies outlined in this guide, immediately connect with local lenders, and start lining up contractor resources—the best deals in 2025 are moving fast.

Bookmark this Indiana fix and flip guide, share it with your partners, and use it as your master playbook for every upcoming project.

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✅ Small Business Resources 

• SBA – Small Business Administration
  https://www.sba.gov

• SCORE Mentors (Free Mentoring & Workshops)
  https://www.score.org
• Small Business Development Centers (SBDC)
  https://americassbdc.org

Are You an SBA Real Estate Loan Expert?

Test your in-depth knowledge on using SBA Loans for owner-occupied commercial Real Estate acquisition. These questions delve into the critical details that can impact your business's growth and financial strategy.

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Page 1 of 5

For an existing commercial property, what is the minimum owner-occupancy percentage required for an SBA 7(a) real estate loan, and does this specific scenario qualify?

A manufacturing company plans to acquire a 30,000 sq ft industrial real estate facility using an SBA 7(a) Loan. The company initially needs 18,000 sq ft for its operations and intends to lease out the remaining 12,000 sq ft.

A) 60%; Yes, it qualifies. B) 51%; Yes, it qualifies. C) 75%; No, it does not qualify. D) 60%; No, it does not qualify, as they are leasing out a portion.

Page 2 of 5

Which of the following sets most accurately represents additional cost categories that can typically be financed within an SBA 504 Loan for a commercial real estate project?

Hint: Beyond the straightforward purchase of a commercial real estate property, an SBA 504 Loan is highly effective for comprehensive projects.

A) Business inventory, working capital, and employee salaries. B) Building renovations, long-term machinery essential to operations within the property, and soft costs like architectural fees. C) Advertising expenses, short-term equipment leases, and utility deposits. D) Personal real estate investments, vehicles for personal use, and stock market investments.

Page 3 of 5

Between an SBA 7(a) Loan and an SBA 504 Loan, which program generally offers the lowest typical borrower down payment for a commercial real estate acquisition, and what is that common minimum percentage for established businesses?

A highly profitable professional services firm in a competitive market wants to purchase its office real estate with minimal upfront capital. The firm's owners prioritize cash flow and liquidity.

A) SBA 7(a) Loan; 15% B) SBA 504 Loan; 10% C) SBA 7(a) Loan; 5% D) SBA 504 Loan; 20%

Page 4 of 5

For new construction, what is the initial minimum owner-occupancy percentage required, and what is the maximum timeframe to meet the full owner-occupancy threshold, for an SBA Real Estate Loan?

A fast-growing tech startup plans to construct a new 50,000 sq ft headquarters using an SBA Loan. They will immediately occupy 35,000 sq ft and have a definitive plan to occupy the remaining 15,000 sq ft within two years as their team expands.

A) Initial 51%, full 80% within 5 years. B) Initial 60%, full 80% within 3 years. C) Initial 75%, full 100% within 1 year. D) Initial 51%, full 100% within 2 years.

Page 5 of 5

What is this crucial requirement, and what fundamental principle does it underscore for the lender?

When securing an SBA Loan for a commercial real estate purchase, principal owners with a 20% or greater ownership stake are almost universally required to provide a specific type of assurance beyond the collateral of the real estate itself.

A) A fixed-rate interest payment commitment, demonstrating long-term stability. B) A first-lien position on all personal assets, ensuring full recovery. C) A personal guarantee, signifying the owners' personal commitment to loan repayment. D) A business plan with projected revenue growth of at least 15% annually, showing future viability.

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✅ Real Estate Investor Resources

• AirDNA (Short-Term Rental Data)
  https://www.airdna.co

• Rentometer (Rent Comps)
  https://www.rentometer.com
• Zillow Research & Data
  https://www.zillow.com/research

DSCR Loan IQ Quiz!

Test your knowledge of Debt Service Coverage Ratio (DSCR) loans!

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Page 1 of 3

What is the primary factor a lender focuses on when approving a DSCR loan for an investment property? a) The borrower's personal debt-to-income (DTI) ratio b) The property's ability to generate enough income to cover its mortgage payments c) The borrower's credit score history over the past 10 years d) The total number of investment properties the borrower already owns

Page 2 of 3

If a property has a Net Operating Income (NOI) of $5,000 per month and its total monthly debt service (PITI) is $4,000, what is its DSCR? a) 0.8x b) 1.0x c) 1.25x d) 5.0x

Page 3 of 3

Which type of borrower most commonly benefits from using a DSCR loan? a) First-time homebuyers purchasing a primary residence b) Investors with a strong W-2 income and minimal tax deductions c) Self-employed individuals or those with complex income who want to avoid traditional income verification d) Homeowners looking to refinance their primary residence for a lower interest rate

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What's the most appealing aspect of a DSCR loan for your investment property financing needs?

A) No personal income verification (no W-2s or tax returns needed!)B) Approval based on the property's cash flow (DSCR)C) Faster closing times compared to traditional mortgagesD) Flexibility for self-employed investors and complex financial situations

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