Martindale-Brightwood is Marion County’s transitional double corridor — Rural Street, Sherman Drive, and 21st Street blocks where 1920s side-by-side stock trades below Fountain Square walkability premium but still clears 7%–9% gross caps when sponsors underwrite block-by-block.
Hard money loans in Martindale-Brightwood fund Near Eastside BRRRR: acquisition of distressed doubles, knob-and-tube rehab, and exit to DSCR loans Indianapolis when rent roll supports 1.15+ ratio.
Martindale-Brightwood geography
Martindale-Brightwood sits northeast of downtown — bounded by I-70, Keystone Avenue, and Brookside adjacency. The corridor differs from core Near Eastside neighborhoods:
- Lower basis than Fountain Square — $88K–$125K as-is on qualified blocks
- Higher block variance — one street may show owner-occupant activity, the next may not
- Brookside spillover — gentrification pressure from the east raises ARV on select blocks
- Industrial adjacency — verify environmental flags on fence-line parcels
Renters include Community East Hospital staff, downtown service workers, and families priced below Irvington owner-occupant markets.
2026 price and rehab bands
| Asset | As-is buy | Rehab | Stabilized ARV |
|---|---|---|---|
| Side-by-side double | $92K–$118K | $44K–$58K | $185K–$218K |
| Small 2-unit MF | $98K–$125K | $48K–$62K | $195K–$228K |
| Bungalow SFR (select) | $82K–$108K | $38K–$52K | $168K–$198K |
Cross-comp Irvington or Fountain Square sales onto Rural Street blocks without adjustment and appraisers will cut ARV $15K–$25K.
Hard money structure for Martindale-Brightwood
- 8.99%–13.5% interest-only · up to 90% LTC · 7–10 business day close
- Draws tied to inspection milestones on both sides
- Exit: DSCR Indianapolis at 5.75%–10.5%
Draw schedule: Rural Street double rehab
| Draw | Milestone | Release | Scope |
|---|---|---|---|
| Draw 1 | Close + 14 days | 25% | Demo, permits, panel rough-in |
| Draw 2 | Electrical sign-off | 30% | Knob-and-tube removal |
| Draw 3 | HVAC complete | 25% | Furnace/AC both units |
| Draw 4 | Finish | 20% | Kitchens, baths, flooring |
A $54,000 rehab funds across 90–120 days — model $1,800–$2,300/mo IO on $162K all-in loan.
Worked example: Sherman Drive double BRRRR
Property: Side-by-side on Sherman Drive, built 1936, one vacant 5 months, occupied side at $900/mo month-to-month.
Acquisition: $102,000.
Rehab: $54,000 — panels, HVAC, kitchens/baths, exterior.
Hard money: 88% LTC → $137,280 funded.
Stabilize: $1,225/side ($2,450 gross).
Appraisal: $198,000.
DSCR refi at 72% LTV → DSCR ~1.18 — model 9% vacancy on transitional block.
Worked example: 21st Street bungalow flip
Acquisition: $94,000 3/2 — estate sale. Rehab: $42,000 — panel, HVAC, kitchen, bath. All-in: $136,000 Sale: $178,000 — 8% costs, $7,800 carry → net ~$14,200 spread.
BRRRR wins when same property holds at $2,400 gross and $192K appraisal — flip spread goes thin.
Martindale-Brightwood vs. Fountain Square
| Factor | Martindale-Brightwood | Fountain Square |
|---|---|---|
| As-is basis | $88K–$125K | $105K–$138K |
| Rent/side | $1,150–$1,350 | $1,250–$1,550 |
| Walkability | Lower | Virginia Ave premium |
| Block variance | Higher | Moderate |
| Gross cap | 7%–9% | 7%–10% |
Block diligence framework
Qualified blocks show:
- Owner-occupant or investor sale within 6 months on same block
- No active code liens on adjacent parcels
- Marion County ARV comps within 0.5 miles
- Street-level safety and vacancy rates supporting 8%–9% vacancy assumption
Avoid: blocks with zero recorded sales in 18 months, industrial fence-line without environmental review.
Diligence on Martindale-Brightwood stock
- Knob-and-tube — budget $12K–$16K electrical per double
- Foundation — clay soils; engineer on 1930s stock
- Lead paint — pre-1978 inventory
- Vacancy — model 8%–10% vs. 7%–8% in Fountain Square
- Insurance — $1,700–$2,100/yr on $195K dwelling
When Martindale-Brightwood beats Haughville
- Slightly higher rent bands on Brookside-adjacent blocks
- Stronger owner-occupant activity on select Sherman Drive streets
- Lower basis than Irvington with similar rehab scope
When you want lowest Near Eastside basis — Haughville spoke.
Martindale-Brightwood capital stack walkthrough
Block-qualified sponsors on Sherman Drive and Brookside corridors typically run:
- Acquire side-by-side double at $88K–$125K on Indianapolis hard money — 8.99%–13.5% IO, 90% LTC, 7–10 day close.
- Rehab $48K–$62K — panels, HVAC, kitchens/baths, exterior paint. Pre-war doubles need mechanical scope before cosmetic draws release.
- Stabilize at $1,150–$1,350/side ($2,300–$2,700 gross) with executed 12-month leases.
- Appraise at $185K–$210K using Marion County comps within 0.5 miles on same corridor.
- Exit via DSCR loans Indianapolis at 72%–75% LTV — extract $30K–$45K equity for the next Near Eastside door.
Hard money carry at 10.5% IO on $165K funded for 6 months runs ~$8,600 — model in flip vs. hold comparison before you choose resale exit on thin-margin blocks.
Pre-close block qualification
Walk the block before you waive inspection: count owner-occupant improvements in the last 12 months, verify no active code liens on adjacent parcels, and confirm three ARV comps support your post-rehab value. Blocks with zero recorded sales in 18 months fail both flip resale and DSCR appraisal — pass even when basis looks attractive.
FAQ
Brookside gentrification premium?
Select blocks east of Rural Street support $25K–$40K ARV premium — document with same-corridor comps only.
Illegal basement units?
Verify permit status before draw schedule — common on pre-war doubles.
100% rehab?
Available on qualified files with experienced sponsor and documented scope.
See Indianapolis metro, Haughville spoke, and Indianapolis BRRRR guide.
The 2% rental cap on a Sherman Drive double
Indiana caps taxes on residential property that is not a homestead at 2% of gross assessed value. A homestead, the owner’s principal home, is capped at 1%. These caps have applied since the 2010 tax bills. They limit the bill. They do not freeze assessed value. Value is still adjusted toward market value-in-use each year.
A Martindale-Brightwood double held for rent is the 2% bucket. Illustration: gross assessed value of $198,000 times 2% is $3,960 a year, or $330 a month. A homestead owner on the same number would cap at $1,980. Do not borrow the 1% figure for an LLC hold. If voters approved a school referendum, those charges can sit outside the cap. Check the bill.
Source: DLGF circuit-breaker fact sheet, November 2025 and DLGF Tax Bill 101.
Rents below the metro FMR, and a slow price index
Revised FY 2026 Fair Market Rents took effect May 21, 2026. HUD describes the standard as the 40th percentile. Marion County’s figures in the Indianapolis–Carmel HUD area are $1,473 for a 2-bedroom and $1,907 for a 3-bedroom. County population in the file’s pop2023 field is 971,737.
Side rents of $1,150–$1,350 sit under the 2-bedroom FMR. That is useful. It means a renovated side is not priced like a downtown apartment. It is also a warning. Do not plug $1,473 into the DSCR model because HUD printed it. Use the executed lease, then stress vacancy at 8%–10% the way this corridor already requires.
FHFA’s East North Central purchase-only index rose 4.5% from July 2025 to July 2026. Census places Indiana in that division. The national index rose 2.6%. Figures run through July 2026 and were released September 29, 2026. A 4.5% move on a $198,000 value is about $8,910. That is smaller than a full kitchen-and-bath draw. The spread has to be in the basis, not in the index.
Sources: HUD Fair Market Rents, FY 2026 FMR notice, FHFA HPI monthly report, and Census geographic terms.
Illustration: value cap beats a full cost request
Example only. Purchase $108,000. Rehab $52,000. All-in $160,000. Appraisal target $198,000.
One hundred percent of cost is $160,000. Seventy-five percent of value is $148,500. Jaken Finance Group funds the lower number on a qualified file, so the loan here is $148,500 even if cost leverage would have covered every dollar of the budget. Sponsor cash is about $11,500 before closing costs. Interest-only at 10.75% accrues about $1,330 a month.
Six months of accrual is about $7,980. Add the $3,960 annual tax cap as a monthly $330 and the carry stack is real on a $2,450 gross rent. Exit through DSCR loans in Indianapolis only after both leases are signed. Statewide terms sit on Indiana hard money.
Lead paint while one side is still occupied
EPA estimates that about three-quarters of U.S. homes built before 1978 still contain some lead-based paint. The federal ban on that paint for homes dates to 1978. Paid work that disturbs painted surfaces in those homes requires a certified firm and lead-safe practices. The duty covers flippers and landlords. A homeowner sanding only their own house is generally outside the rule.
Indiana is not a state EPA has authorized to run the program, so EPA administers it. A 1936 Sherman Drive double with a tenant still in one side is the hard case. The firm has to control dust while that household is in the building. Do not treat the occupied side as vacant for the lead plan. Overview: EPA Renovation, Repair and Painting program.
A tight month on $2,450 gross
Use the $148,500 illustration and the rents already on this corridor. Gross rent $2,450. A 9% vacancy allowance is about $221. The 2% tax cap at a $198,000 value is about $330 a month. Insurance at $1,900 a year, inside the page’s $1,700–$2,100 band, is about $158. Interest at 10.75% is about $1,330.
| Line | Monthly |
|---|---|
| Gross rent | $2,450 |
| Vacancy at 9% | $221 |
| Tax at the 2% cap | $330 |
| Insurance | $158 |
| Interest-only | $1,330 |
| Left before repairs and management | $411 |
That $411 has to pay repairs, any property manager, and a missed month. It is not spending money. Dropping vacancy to 5% without a quiet block walk is how the ratio gets written instead of earned. Keep both leases at 12 months before the DSCR refinance.
Before draw one, confirm separate meters or a separation bid, no open code case on the next two parcels, and three same-street sales inside 18 months. A block with no sale in that window fails the appraisal even when the basis looks cheap.
A panel bid of $14,000 is about ten and a half months of the $1,330 interest in the illustration. Cutting the electrical scope to protect that interest does not protect the refinance. The occupied side still has knob-and-tube until the sign-off. Leave the bid in draw two. Haughville is the lower-basis comparison when this block’s variance is too wide.
Martindale-Brightwood — double BRRRR file gates (2026)
Martindale-Brightwood files fail when Fountain Square walkability premium is priced into $88K–$125K basis doubles — higher block variance requires per-street diligence.
- Side-by-side double: $92K–$118K + $44K–$58K → ARV $185K–$218K
- Rent band: $1,150–$1,350/side ($2,300–$2,700 gross) — model 8%–10% vacancy
- vs Fountain Square: Lower basis · lower rent · higher block variance
- Exit: DSCR Indianapolis at 1.15+ ratio
Underwriting anchor: Acquisition: $102,000. — replay corridor basis and comp discipline from this page before locking hard money, bridge, or DSCR term. Hard money BRRRR stack · 7–10 day close · (833) 264-7776.
Pre-Qualify for Martindale-Brightwood Hard Money · Indianapolis metro · (833) 264-7776