3757 Caroline Ave, Indianapolis, IN, 46218
Condition Notes
This one actually presents better than its 'Fair' assessor condition grade suggests — the listing photos show fresh gray paint and dark LVP-look flooring running through the main living areas, a full kitchen with white cabinets and a gas range left in place, and newer carpet in the two upstairs bedrooms. The bathrooms are dated but clean and functional, and there's a wood-burning fireplace with a painted mantel in the living room. What I can't confirm from photos alone is the age of the roof, furnace, water heater, or electrical panel — the seller's disclosure marks every line item 'unknown,' which is standard for an investor-owned property like this one, not a red flag. I'd treat this as a light cosmetic-and-verification job rather than a gut rehab, and I'd still get a full inspection before closing like I would on any investment purchase.
Strategy Comparison
I'd lead with LTR here — a same-street rent comp backs up the market rent number directly, and it clears a 9.2% cap rate and 7.9% cash-on-cash at the full asking price. MTR pencils out just as well on paper, but rests on a modeled furnished rate with no direct near-eastside comp, so I'm treating it as a strong secondary option rather than the lead. If getting your capital back out matters more than raw cash flow, the cash-in BRRRR version gets 91% of your money back while still cash flowing. Short-term rental doesn't work in this pocket — it's a residential submarket, not a tourist one. A flip is real but thin here; I wouldn't buy this one for the flip math alone.
LTR — at market rent
This is the play I'd lead with — a same-street rent comp backs up the $1,475/mo number directly, and even with a standard 20%-down conventional loan you're clearing about $230 a month with a 9.2% cap rate and a 7.9% cash-on-cash return at the full asking price.
MTR — furnished mid-term rental
The math edges out LTR slightly, but I'm leaning on a modeled furnished rate here since there's no direct near-eastside furnished 3-bedroom comp to point to, plus you'd be taking on furnishing costs and more frequent tenant turnover. I'd treat this as a strong secondary option rather than the lead.
BRRRR — cash in, refinance out
Buy and repair in cash, then a 75%-LTV refinance against my $150,000 ARV gets you a $112,500 loan — that recovers 91% of what you put in, leaving only about $10,700 in the deal long-term while still cash flowing $59 a month. If getting most of your capital back out is the priority, this is the more efficient version of the same LTR play.
BRRRR — hard money in, refinance out
If cash isn't available up front, hard money (90% of purchase plus the full repair draw, 2.5 points, 11% interest-only) covers both the purchase and the full repair budget over an approximately 4-month hold before the same refinance. The financing costs eat into the capital recovered, so this version recycles a bit less and cash flows on a smaller margin than the cash-in version above.
Flip
This one does turn a real profit — about $7,400 net after hard-money costs, selling costs, and a 5-month holding period — but it's a thin margin relative to the ARV, not a big forced-equity flip. I'd treat this as a fallback exit if a buy-and-hold ever stops making sense, not the primary reason to buy this one.
Comps
Sale Comps
Four independent sold comps, all in zip 46218. The two closest size matches (5310 E 16th St and 5317 E 19th Pl) bracket $101-115/sqft, which is what I leaned on for the $150,000 ARV — the two smaller 3BR sales priced higher per square foot but aren't as size-comparable.
Rent Comps
The direct same-street comp (3540 Caroline Ave) scales to about $1,490/mo at this property's 1,464 sqft, which is where I landed my $1,475/mo market rent figure — cross-checked against 3 other zip 46218 comps.
The Numbers
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This analysis is provided for informational purposes only and does not constitute financial, legal, or investment advice. All figures are estimates based on available data and independent research at the time of preparation; they are not guaranteed and should be independently verified before making any purchase decision. Consult your own financial, legal, and tax advisors before acting on this information.