Bates-Hendricks sits south of Fountain Square along Bates Street and Hendricks Street corridors — blocks of worker housing duplexes and bungalows where investors chase yield, not Zillow appreciation headlines.
Hard money loans in Bates-Hendricks close in 7–10 days on distressed Marion County inventory banks will not touch — then fund draw schedules through panel upgrades, HVAC replacements, and kitchen gut jobs that make DSCR math work at $1,250–$1,450 per side.
Why yield investors pick Bates-Hendricks over Fountain Square
The trade is straightforward: $10K–$18K lower acquisition basis per duplex, $50–$100/mo lower per-side rent, but higher yield-on-cost because all-in basis compresses faster than gross rent drops. A Bates-Hendricks duplex at $124K buy + $54K rehab = $178K all-in stabilizing at $2,800/mo gross delivers ~9.5% gross cap. The comparable Fountain Square deal at $128K + $56K = $184K at $2,850/mo gross caps closer to ~9.3% — but Fountain Square carries arts-district resale optionality Bates-Hendricks does not.
Indiana landlord-friendly law supports hold exits — no statewide rent control compressing NOI, and eviction timelines that favor operators who document lease violations properly. Bates-Hendricks is a cash-flow stacking neighborhood, not an appreciation bet.
Bates-Hendricks block-level inventory
Property types cluster by street:
- Bates Street corridor: Dense 1920s–1940s side-by-side duplexes, often with alley-access HVAC and shared parking pads. Highest investor turnover.
- Hendricks Street: Mix of duplexes and single-family bungalows — SFR flips exist but duplex BRRRR dominates volume.
- Raymond Street / Madison Avenue adjacency: Slightly higher crime perception; basis drops $8K–$12K but management intensity rises. Budget 10% vacancy, not 8%.
- Southern Avenue spillover into Garfield Park: Similar stock, conservatory-adjacent blocks command $5K–$10K premium.
2026 numbers
| Line | Range |
|---|---|
| As-is duplex | $98K–$132K |
| Rehab (mechanical + cosmetic) | $40K–$58K |
| Gross rent (both sides) | $2,400–$2,900/mo |
| Stabilized ARV | $198K–$232K |
| Gross cap (stabilized) | 7.5%–10.2% |
| All-in basis per door | $69K–$95K |
Hard money programs and terms
Indianapolis metro hub · fix and flip Indiana · hard money Indiana
Standard Bates-Hendricks file: 88%–90% LTC, 10%–12.5% IO, 12-month bridge. Marion County title and LLC vesting are routine — no special Indiana licensing beyond standard investor entity structure.
Draw schedule: Bates-Hendricks duplex rehab
| Phase | Week | Draw % | Work completed |
|---|---|---|---|
| Mobilization | 1–2 | 20% | Permits, dumpster, demo, panel rough-in |
| Mechanical | 3–6 | 35% | Electrical passed, HVAC installed, plumbing rough |
| Drywall/finish | 7–10 | 30% | Kitchens, baths, flooring, paint both sides |
| Final | 11–12 | 15% | Punch list, CO if required, photos for appraisal |
Occupied-side renovations require tenant coordination — estoppel agreements and 72-hour notice windows. Hard money draw timelines slip when sponsors fail to schedule occupied-side kitchen access before close.
Worked example: Bates Street side-by-side BRRRR
Property: Side-by-side duplex on Bates Street, 1941 build, 1,520 sq ft, tenant in Unit A at $1,050/mo, Unit B vacant.
Purchase: $124,000
Rehab scope — $54,000:
- Electrical upgrade (shared panel to dual 200-amp): $13,500
- HVAC (Unit B full system, Unit A furnace): $10,200
- Kitchens (both units, IKEA-level finish): $11,800
- Baths (both): $7,900
- Flooring, paint, misc: $10,600
Hard money: 88% LTC on $178,000 all-in → $156,640 loan at 11% IO. 10-month projected hold. Close in 10 business days.
Carry cost: ~$1,436/mo interest + $180/mo taxes/insurance during rehab = ~$1,616/mo × 10 months = ~$16,160 total carry.
Stabilization:
- Unit A: raised to $1,400/mo at lease renewal (month 4)
- Unit B: leased $1,400/mo (month 3)
- Gross: $2,800/mo
Appraisal: $218,000 (three Bates-Hendricks duplex comps within 0.4 mi)
DSCR refi at 70% LTV: $152,600 permanent loan at 7.95% → $1,002/mo P&I. NOI after 8% vacancy, 8% PM, taxes $220/mo, insurance $88/mo → ~$1,996/mo. DSCR ~1.18.
Net to sponsor: ~$152,600 refi proceeds minus ~$162,000 payoff (principal + accrued interest) = sponsor adds ~$9,400 cash at refi but owns $218K asset with $65,400 equity and recycles the hard money slot.
Street-level diligence Bates-Hendricks sponsors miss
- Alley access for HVAC condensers — scope condenser pad placement before close; some alleys are 8 ft wide with overhead lines
- Occupied side — estoppel, security deposit assignment, and lease estoppel for DSCR file
- Foundation — engineer on 1940s block if stair-step cracks exceed 1/4 inch or basement walls bow
- ARV comps — only Bates-Hendricks and Near Eastside duplex sales; Garfield Park comps acceptable within 0.5 mi if similar stock
- Sewer lateral — older blocks on clay pipe; camera scope if slow drains noted at inspection
- Illegal conversions — third unit in basement kills DSCR if not permitted
Vs. Broad Ripple and Near Eastside siblings
| Market | Basis | Strategy | Cap |
|---|---|---|---|
| Bates-Hendricks | Low | BRRRR stack | 7%–10% |
| Fountain Square | Medium | BRRRR + resale option | 7%–9.5% |
| Broad Ripple | High | Turnkey DSCR | 5%–6.5% |
Do not cross-comp Broad Ripple SFR onto Bates-Hendricks duplex ARV — different buyer pool entirely.
Pre-qual checklist: Bates-Hendricks
- Executed purchase agreement with hard money or cash financing clause
- GC scope with electrical line item — Bates-Hendricks deals die on under-scoped panel work
- Three duplex sold comps within 0.5 mi (not SFR comps)
- Rent roll or market rent analysis at $1,250+ per side
- LLC documents and 2 months bank statements showing reserves
- Occupied-side estoppel if applicable
- Title free of heirship, tax sale, and Marion County code liens
- Insurance quote — landlord DP-3 on duplex
FAQ
100% rehab draws?
Qualified sponsors with milestone documentation and licensed GC invoicing receive 100% of approved rehab holdback across scheduled draws — not upfront.
LLC close?
Standard Marion County investor practice. Personal guarantee typical on first 1–3 deals.
Property management?
Budget 8% PM and 8% vacancy in DSCR expenses — local PM firms ( Cressy & Everett , Realty Trust ) know Near Eastside turnover patterns. Self-management is viable if sponsor lives within 20 minutes.
SFR flip alternative?
A Bates-Hendricks bungalow at $108K + $38K rehab → $165K ARV flip yields ~$12K–$18K net after carry. Duplex BRRRR at same capital deployment typically extracts more long-term equity.
Pre-Qualify for Bates-Hendricks Hard Money · (833) 264-7776
Rates, terms and conditions offered only to qualified borrowers and are subject to change without notice. All loans are subject to full underwriting. Jaken Finance Group only finances non-owner occupied investment properties.