New Build or Proven Performer? Which Performs in Indy?

Happy Friday, 

Hope your week is wrapping up nicely! Our Masterclass last week was a huge success—the panel brought incredible insights, and the Roots team delivered as always. What truly made it special was seeing a room full of like-minded people, showing up with abundance, ready to grow. If you’d like to join us at a future event, reply to this email and I’ll get you on the invite list and introduce you to the group.

Something that caught my attention last week felt worth sharing: 3-2-1: On true wealth, the antidote to anxiety, and how to love someone as they change.

I read it and was reminded how often progress comes from simply moving forward—sharing what you’re building, tackling the problem in front of you, and letting yourself and others evolve. The reminder that time is our greatest wealth hit hard; most of history would trade everything for the day we have right now.

With that, we’ve been working hard to get clients into the right rentals. One thing that stood out to me at the Masterclass event was the shared calling toward redemptive investments—a genuine desire to make a difference in our city from people in our community. The discussion naturally sparked some healthy debate: What does great delivery of service really look and feel like? And when investing, do you go with something established or start fresh and new?

A few weeks ago, I mentioned a client building with the NEU Group. Here’s another update on their journey:

New construction brings excitement, while the low-maintenance safety of an established property is admirable—but what’s the actual return when you compare the two? Let’s dive in.

P.S. I have about 30 units in some portfolios coming up that will need a new owner. All of them have tenants. 

P.P.S. We also have the inside scoop to lots at NEU before they release them out, get a Roots agent and go hunt for lots not the other way around!

Property #1: 1334 Calhoun St, Indianapolis, IN 46203

As always, schedule a call with me to talk about deals or to update your criteria:
https://calendly.com/maxrealestate/lets-write-an-offer-15-minute-call

Purchase Price: $115,000
Type: 2 Bed, 1 Bath
Tenant: $1,150/month, lease through 7/15/26
Location: Southside, on the edge of Garfield Park / Near Southside

Max’s Thoughts: 

I started with this property on purpose—because it hits the 1% rule and shows how tight the margins can be on a lower-priced home. True cash flow is tough here; you’re essentially hoping to break even. This is the “weakest link” for Team Established.

Assumptions:
25% down, 5% maintenance, 2% vacancy, 10% CapEx, 10% management

Monthly Cash Flow: ~$70/month

One factor often overlooked: an established tenant at purchase. With rent coming in before your first mortgage payment (typically ~2 months after close), Year 1 could see an extra ~$2,300 in your pocket.

5-Year Projection:

• Profit from sale: ~$20,000

• Total cash flow (vacancy-adjusted): ~$8,448

• Total return (5 years): ~$28k + any unexpected appreciation upside

Property #2: 1310 N Ewing St, Indianapolis, IN 46201

Purchase Price: $190,000
Type: 4 Bed, 2 Bath
Historic Rents: $1,900/month
Location: Englewood / Near Eastside

Max’s Thoughts:
Four-bedrooms have been a cheat code for driving strong rents. I believe there will always be steady demand for this property, and it has the makings of a great long-term hold. My hope is that over the next 3–4 years, the location experiences significant growth.

Assumptions:
25% down, 5% maintenance, 2% vacancy, 10% CapEx, 10% management

5-Year Projection:

• Profit from sale: ~$56,000

• Total cash flow YR 5 (vacancy-adjusted): ~$17,419

• Total return (5 years): ~$73k + any unexpected appreciation upside

Property #3: 1211 N Gale St, Indianapolis, IN 46201

Purchase Price: $145,000
Type: 2 Bed, 1 Bath
Tenant: $1,450/month (Leased until 2/26)
Location: Englewood / Near Eastside

Max’s Thoughts:
I personally own in this neighborhood, and it’s an area that needs better owners in a big way. I believe real impact can be made here if more of us commit to providing quality housing in this corridor of the city.

Assumptions:
25% down, 5% maintenance, 2% vacancy, 10% CapEx, 10% management

5-Year Projection:

• Profit from sale: ~$35k

• Total cash flow YR 5 (vacancy-adjusted): ~$15,167

• Total return (5 years): ~$50k + any unexpected appreciation upside

Compared to two different options with a newer touch: 

Property #4: 1211 N Gale St, Indianapolis, IN 46201

(Not Lexington Ave pictured—this is an example of a NEU Group build one of our clients recently completed)

Purchase Price: $425,000
Units: 2 (each 3 bed, 2 bath)
Projected Rents: ~$1,775/unit
Location: Englewood / East Fountain Square

Max’s Thoughts:
This property represents the “new build” side of the debate. While the quality is top-notch, rental demand can be tricky—especially with 10 similar builds (20 total units) hitting the same street around the same time. That’s a lot of competition for the same tenant pool. Across the board, $1,775 per unit seems to be the sweet spot (with some locations pushing slightly higher or lower). The upside? You get a 2–10 builder warranty, which means lower maintenance and CapEx exposure.

Assumptions:
25% down, 2% maintenance, 5% vacancy, 2% CapEx, 10% management

5-Year Projection:

• Profit from sale: ~$103,000

• Total cash flow (vacancy-adjusted): ~$25,920

• Total return (5 years): ~$128,920 + any appreciation upside

Three opportunities with established tenants already in place vs. one new construction, turnkey property.

I don’t have a clear-cut favorite—do you?