1st Advantage MortgageIndiana's price points and employment base make it a favorite of buy-and-hold investors. A DSCR loan approves the rental on rent against payment, with no tax returns, which works well for investors who already own several properties.
A property tax cap that treats rentals differently from homes
Indiana limits property tax bills by capping them as a percentage of assessed value, and the cap for rental residential property is higher than the cap for an owner-occupied homestead. That has a practical consequence. The seller's tax bill, based on a homestead, may understate what you will pay as a landlord. Estimate your own bill using rental classification, then run the full payment through the calculator. Beyond taxes, the state's logistics, manufacturing, healthcare and university economies support a wide range of rental demand.
Where Indiana investors look
A large metro with logistics, healthcare, life sciences and universities. Carmel, Fishers and Greenwood serve suburban renters.
Manufacturing, healthcare and a growing downtown support steady demand and moderate price points.
A river city with manufacturing and healthcare employers and affordable houses.
A major university and a revitalizing downtown bring student and staff renters.
Two large university towns where leases follow the academic calendar.
What you will probably be buying
Single-family houses are common, with duplexes and small buildings near campuses and in older neighborhoods.
Costs and details to price in before you offer
The cap on tax bills is higher for rentals than for homesteads, so do not assume the seller's bill carries over.
Indiana closings are typically handled by title companies, with attorneys involved in some transactions.
Near campuses, plan for vacancy between leases.
Run it, then apply
Put the real tax and insurance figures into the calculator, check the requirements, and if this is your first rental read the first-time guide. Ready? Apply now or get a DSCR quote.
Nearby states
DSCR loans are business-purpose loans on investment property. Availability in Indiana depends on the property, the borrower and the lender program, and this page is not an offer to lend. See our disclosures.
More Indiana city guides
Local pages for 2 more Indiana markets, each with neighborhoods, property types and checks specific to that city.
Frequently asked questions
Why can my Indiana tax bill differ from the seller's?
Because the seller may have claimed the homestead treatment, which is capped at a lower percentage of assessed value than rental property. As an investor, plan on the residential rental treatment and check with the county auditor.
Is Indianapolis a strong place for a first DSCR purchase?
It has a large rental base and moderate price points, so many first-time investors look there. The lender still underwrites the individual property, so a good location and an honest rent estimate matter most.
Does the loan care whether the building is near a campus?
Not directly. The appraiser may adjust the rent for the market, and student rentals can bring condition and turnover concerns that you should account for yourself.