Purchasing an investment property is not something you should do without consideration. There are a plethora of factors to consider with both the property as well as the resources you have. Not doing your due diligence can lead to a huge loss, which is more probable in real estate investing. Here's what you should consider when purchasing a duplex in Indianapolis or Kokomo.
Factors Future Duplex Owners Should Look Into
Location
Location is everything—especially when purchasing a duplex. In Indianapolis, areas like Fountain Square or Irvington offer strong rental potential, while Kokomo’s desirable west-side neighborhoods and near-downtown areas continue to attract tenants. A property’s proximity to schools, employers, hospitals, and public transportation will heavily influence your occupancy rates and rent potential.
Property Condition
Duplexes can be an attractive investment because of the potential for dual rental income, but only if they’re in good condition. Many older properties in central Indiana come with charm—and repairs. Inspect both units thoroughly and budget for updates to plumbing, HVAC, roofing, or flooring. What looks like a deal upfront could lead to costly surprises later.
Rental Market
Understanding the local rental market is crucial. In Indianapolis, duplexes can be highly profitable in high-demand areas like Broad Ripple, while Kokomo’s stable job market continues to support rental housing demand. Look at average rents, vacancy rates, and tenant turnover in the area before committing to a property.
Financing Options
You can explore traditional financing, FHA loans (especially helpful for house-hacking if you plan to live in one unit), or even seller financing in some cases. Duplexes often qualify for residential loans up to four units, making them more accessible than commercial properties. Your credit score, income, and expected rental income will all factor into what options are available.
Potential Returns
Don’t just focus on the rent. Factor in expenses like insurance, maintenance, property taxes, and utilities. In areas like Kokomo, property taxes are generally lower than in Marion County, which can make a noticeable difference in your bottom line. Use a cash flow calculator to evaluate the duplex’s potential return on investment.
Landlord Responsibilities
Owning a duplex means double the tenants—which can mean double the work. If you’re managing the property yourself, expect to handle maintenance calls, lease agreements, tenant communication, and more. Many investors in Indianapolis and Kokomo choose to work with a local property management company to help reduce the burden and ensure consistent rental income.
Real Estate Investing FAQs
Is buying a duplex a good first investment?
Yes! A duplex offers the chance to live in one unit while renting out the other—helping offset your mortgage and gain landlord experience.
Can I finance a duplex with an FHA loan?
Yes, FHA loans allow you to purchase multi-family properties (up to 4 units) as long as you occupy one unit as your primary residence.
Do I need a property manager?
It is always a safe bet to have a property manager. Companies like CRM Properties can manage your duplex while you focus on expanding your portfolio—or simply enjoying passive income.
Thinking about investing in a duplex in Kokomo or Indianapolis?
We’re here to help guide you every step of the way. Schedule a free consultation with CRM Properties and let us help you turn your investment goals into reality! Be sure to check out our properties for sale here.