Choosing between a condo and a single-family rental (SFR) is one of the biggest decisions Indianapolis investors face — especially in a market where affordability, rent demand, and long-term appreciation vary neighborhood by neighborhood.

Both property types can be profitable, but they perform differently depending on your investment strategy, budget, and risk tolerance.

Here’s the full breakdown of how condos and single-family rentals stack up in Indianapolis for 2025.

Why This Question Matters for Indy Investors

Indianapolis has a unique rental landscape:

• Strong demand from young professionals, students, and families

• Steady job growth

• Affordable entry prices

• Expanding suburban markets

• Older housing stock in many central neighborhoods

This makes both condos and SFRs appealing — but for very different reasons.

Let’s dig in.

Single-Family Rentals: The Classic Indy Investment

SFRs are the backbone of Indianapolis investing. They’re plentiful, affordable compared to national averages, and appeal to long-term tenants.

Advantages of Single-Family Rentals

1. Strong Tenant Demand

Families, relocators, and long-term renters prefer SFRs for:

• Private yards

• More space

• Quiet neighborhoods

• Storage + parking

Stability = lower turnover and steadier cash flow.

2. Better Appreciation Potential

Indy’s hottest appreciation zones — like Fountain Square, Garfield Park, Windsor Park, and Irvington — are dominated by SFRs.

Land and location drive long-term value.

3. More Control Over Maintenance

No HOA telling you what you can or can't fix or upgrade.

4. More Exit Options

You can sell to:

• Another investor

• An owner-occupant

• A first-time homebuyer

• A flipper

Larger buyer pool = more liquidity.

Downsides of Single-Family Rentals

1. Higher Maintenance Costs

Roofs, siding, HVAC, plumbing — it’s all yours.

Older Indy homes (pre-1950) often need:

• Sewer line repairs

• Foundation work

• Electrical updates

2. Higher Upfront Costs

Buying an SFR often requires a larger down payment than a condo.

3. Vacancy Hits Harder

One vacancy = 100% empty.
Condos and multis distribute risk better.

Condo Rentals: The Low-Maintenance Approach

Condos are appealing to investors who want:

• Low day-to-day maintenance

• Affordable entry points

• More predictable operating costs

And in Indianapolis, condo demand has grown especially in areas like:

• Downtown

• Broad Ripple

• Nora

• Pike Township

• Near suburban job corridors

Advantages of Condo Rentals

1. Lower Maintenance Responsibility

The HOA typically handles:

• Exterior repairs

• Roof

• Landscaping

• Snow removal

• Common areas

Your job? Mostly interior maintenance.

2. Lower Purchase Prices

Condos often cost 20–40% less than comparable SFRs in the same zip code.

3. Predictable Expenses

HOA dues simplify budgeting — especially for new investors.

4. Higher Cap Rates in Select Areas

Some Indy condos perform extremely well relative to cost, especially near:

• IUPUI

• Broad Ripple Village

• Nora

• Northwest side tech/employment hubs

Downsides of Condo Rentals

1. HOA Fees Reduce Cash Flow

A $250–$400/mo HOA can erase cash flow quickly unless purchase price and rents align well.

2. Rental Restrictions

Some HOAs limit:

• The number of units that can be rented

• Minimum lease periods

• Short-term rentals

• Tenant types

Always check bylaws before you buy.

3. Weaker Appreciation

Condos appreciate slower than SFRs — especially in older communities or high-HOA developments.

4. HOA-Controlled Repairs

If the HOA delays a roof or fails to maintain the property well, you bear the impact.

Head-to-Head Comparison: Which Performs Better in Indy?

Which Should You Buy?

Choose a Single-Family Rental if you:

• Want long-term appreciation

• Prefer stable tenants

• Don’t mind maintenance

• Want more control

• Are planning BRRRR or value-add investing

• Want a strong exit strategy

Choose a Condo Rental if you:

• Want a low-maintenance entry point

• Are a first-time investor

• Prefer predictable monthly expenses

• Are buying near dense, urban, or job-heavy areas

• Want lower upfront cost

What About Airbnb?

Some investors consider condos for short-term rental — but HOA restrictions often shut that down.

For short-term rental strategy and high-performing neighborhoods, see:
Best Indianapolis Airbnb Areas 2025 for Investors

Out-of-State Investors: Which Option Is Better?

Many out-of-state investors prefer condos because:

• HOAs reduce management complexity

• Lower repair risk

• More predictable returns

However, SFRs often outperform condos on:

• Appreciation

• Long-term wealth building

• Value-add opportunities

If you're choosing Indy over more expensive markets, this guide helps explain why:
Why Everyone’s Eyeing Indianapolis Real Estate in 2025

FAQs for Indianapolis Investors

Do condos cash flow well in Indy?
Sometimes — but only when HOA fees are low relative to rent.

Are SFRs better long-term investments?
In most Indy neighborhoods, yes, due to appreciation and broader tenant demand.

Can I BRRRR a condo?
Rarely. HOAs often restrict improvements and refinancing flexibility.

Do condos attract stable tenants?
Many do — particularly in job-heavy areas — but SFRs win in stability.

Final Thoughts

Both condos and single-family rentals can perform well in Indianapolis — but they excel for different types of investors.

• If you want long-term appreciation, control, and stable tenants, go with an SFR.

• If you want lower maintenance, predictable expenses, and an easier entry point, a condo may be perfect.

Whichever route you choose, the key is buying in the right neighborhood, with the right financing, and with a clear strategy.

If you want help comparing deals, analyzing cash flow, or building a mixed-property Indy portfolio, Roots Realty Co. is here to guide you.

Investor Resources: https://rootsrealty.co/invest/investor-resources
Join our newsletter: https://rootsrealty.co/join-roots-newsletter