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
Bates-Hendricks — duplex yield file gates (2026)
Bates-Hendricks files fail when Fountain Square arts-district ARV prices southern corridor duplex basis, or when shared 100-amp panel scope is absent from draw one. Higher yield-on-cost than Fountain — less resale optionality.
- Purchase: $124K side-by-side — $54K rehab — $178K all-in
- Rent: $2,800/mo gross stabilized — ~9.5% gross cap achievable
- Corridor: Raymond / Madison adjacency — budget 10% vacancy not 8%
- Exit: Indiana DSCR at 70%–75% LTV on documented leases
Bridge 8.99%–13.5% IO · Indy rankings · (833) 264-7776.
Underwriting anchor: Purchase: $124,000 — panel** scope is absent from draw one on Bates Hendricks Indianapolis before IO term. 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.