Class B & C value-add. 50–300 units. Indianapolis & Columbus.
The acquisition criteria we'll deploy capital against in 2026. Of six markets we underwrote in depth, Indianapolis and Columbus delivered the optimal balance of day-1 cash flow, forced equity through value-add, landlord protections, and long-term appreciation for an active operator at scale.
Acquisition criteria, on one page.
Class B vintage 1985–2005. Class C vintage 1970–1990. Value-add stock with clear operational upside.
Mid- to large-multifamily where active, professional management creates durable NOI advantage.
Below replacement cost. Underwritten for positive day-1 cash flow before value-add execution.
In-place going-in cap rates. We do not chase yield on stabilized assumptions.
Interior renovations, ratio utility billing implementation, amenity and operations upgrades.
Two markets. Programmatic. No tourism in markets we don't know cold.
Why Indianapolis and Columbus.
Of the six markets we researched, Indianapolis and Columbus delivered the optimal balance of day-1 cash flow, forced equity through value-add, landlord protections, and long-term appreciation for an active operator deploying at scale.
Indianapolis, IN
- #1 Ranked. Spring 2026 Arbor/Chandan Opportunity Matrix — top of all 50 major US metros.
- Supply cliff. 65% drop in new construction YoY — existing owners regain pricing power.
- $8B+ economy. $4.3B IU Health hospital plus $3.7B+ additional projects driving sustained workforce demand.
- Landlord laws. No rent control, fast eviction (2–3 weeks), no preemption statewide.
- Cash flow. Class C caps 7–8.5%, 1BR avg $950–$1,247 — strong day-1 returns at our target unit.
Columbus, OH
- Intel catalyst. $28B chip plant creating 20,000+ direct jobs — a once-in-a-decade workforce surge.
- Suburb ring. Canal Winchester, Grove City, Gahanna: 94%+ occupancy with a minimal new supply pipeline.
- Rent growth. 3–4% annual rent growth — steady and predictable, outperforming the national average.
- Landlord laws. Ohio: 3-day eviction notice for non-payment, no rent control statewide.
- Scale ready. 50–100+ unit 1990s–2005 stock abundant in suburbs — fits a programmatic renovation model.
Others eliminated: Charlotte / Raleigh (higher acquisition cost, thinner day-1 cash flow) · Kansas City (slower appreciation) · Chicago (Cook Co. taxes plus regulatory complexity at scale).
Indianapolis, IN — the operator's market.
Spring 2026 Arbor/Chandan #1 ranked market. Score: 43/50. Active operator playbook.
Economic Tailwinds
- $4.3B IU Health hospital. Downtown — opens 2027. Anchors healthcare workforce demand.
- $3.7B+ additional projects. Stacked development in the Indianapolis urban core.
- 26,661 new MSA residents. In-migration from IL, CA, NY seeking affordability.
Top Submarkets
- Irvington / East Side. Best rent-to-price ratio · 1BR ~$800–880 · cash-flow focus · hospital proximity.
- Southside / Greenwood. Stable family tenants · low turnover · Class B & C sweet spot · affordable entry.
- Broad Ripple. Young-professional demand · 1BR ~$1,755 · higher entry · strong rent growth.
- Fishers / Carmel. A+ schools · low crime · premium Class B · longest tenant tenure.
Active operator strategy. Mid-grade reno $12k–$18k/unit → +$150–$200/mo · RUBS for immediate NOI · 6-year hold.
Columbus, OH — the Intel catalyst.
Intel catalyst market. Suburban ring outperforming. Score: 39/50. 3–4% annual rent growth.
The Intel Catalyst
- Intel $28B chip plant. 20,000+ direct jobs and 40,000+ supply-chain jobs entering the market.
- New Albany / Licking County corridor. Fastest-growing workforce-housing demand zone in Ohio.
- Strong landlord position. 3-day non-payment eviction notice and no statewide rent control.
Top Submarkets
- Canal Winchester / Grove City. Lower acquisition cost · Intel corridor proximity · suburban ring outperforming.
- Clintonville. Safest urban neighborhood · strong demand · steady appreciation · A+ schools.
- Gahanna / Westerville. Family-oriented · 94%+ occupancy · long-tenure tenants · low turnover.
- Olde Towne East. Emerging appreciation · lower entry price · higher active-management requirement.
Active operator strategy. Mid-grade reno $12k–$18k/unit → +$150–$200/mo · RUBS for immediate NOI · 6-year hold.
Two risk/return profiles. One discipline.
| Criteria | Class B | Class C |
|---|---|---|
| Vintage | 1985 – 2005 | 1965 – 1990 |
| Price / Unit | $65k – $100k | $35k – $65k |
| Cap Rate | 5.8 – 7.0% | 7.0 – 8.5% |
| Reno Cost / Unit | $15k – $35k | $4k – $20k |
| Rent Premium | +$150 – $400/mo | +$75 – $250/mo |
| IRR Target | 12 – 15% | 15 – 18% |
| Cash-on-Cash Yr 1 | 5 – 7% | 6 – 9% |
| Tenant Profile | Mid-income workers | Workforce / essential |
| Mgmt Intensity | Moderate | High |
| Best Fit (Indy) | Fishers · Broad Ripple · Greenwood | Irvington · East Side · Southside |
How capital improvements multiply into equity.
Every $1 of NOI added becomes property value at the inverse of the cap rate. Discipline on the operating side does the heavy lifting.
Illustrative — 60-unit Class C, Indianapolis (7% cap)
| Metric | At Purchase | Post-Renovation | Change |
|---|---|---|---|
| Avg Rent / Unit | $950/mo | $1,150/mo | +$200/mo |
| Gross Rental Income | $684,000/yr | $828,000/yr | +$144,000 |
| NOI | $367,920 | $490,800 | +$122,880 |
| Property Value @ 7% cap | $5,256,000 | $7,011,429 | +$1,755,429 |
| Reno Cost (60 units) | — | $900,000 | Invested |
| Net Equity Created | — | — | +$855,429 |
Illustrative only. Not financial advice. Actual results vary by market, property, financing terms, and execution.
Submarket selection is everything.
Street-level diligence determines returns more than metro-level headlines.
Indianapolis, IN
Moderate citywide — suburbs significantly safer. East Side / Irvington below city average. Fishers / Carmel A-rated safety.
Fishers, Carmel, Greenwood: A+ rated. Hamilton County schools among the top in Indiana statewide.
- · Healthcare workers (IU Health $4.3B expansion)
- · Logistics & manufacturing (Amazon, Eli Lilly)
- · Tech & life-sciences professionals
- · In-migrants from IL, CA, NY seeking affordability
Columbus, OH
–20% drop in 2025 — improving trajectory. Clintonville, Bexley, Worthington among the safest neighborhoods in Ohio.
Clintonville, Bexley, Worthington A+ rated. Suburban-ring districts consistently A / A+.
- · Intel supply-chain workers (20k+ incoming)
- · OSU graduate & faculty housing demand
- · Young professionals — fastest-growing Midwest metro
- · Essential workers priced out of upgrading submarkets
Conservative underwriting. Active execution.
Stress-test standard. Zero rent growth · 8% vacancy · 5% annual expense growth · every deal must clear 1.25× DSCR in the stress case.
Underwriting discipline
- Add 20% contingency to all renovation budgets. Contractor costs remain elevated in 2026.
- Three contractor bids before finalizing CapEx. Underwriting $12k/unit often meets $18k/unit reality.
- Model rent ceiling per submarket. Never renovate beyond what local market rents support.
- RUBS as immediate NOI lever. Ratio utility billing — no renovation required, instant return.
- Target 5 – 7 year holds. 6-year recommended in Indianapolis for optimum exit timing.
Got a deal that fits the box?
Submit it here. Doug personally reviews every submission. If it fits Indianapolis or Columbus and our criteria, you'll hear back within one business day.