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Report: Nearly half of rental homes in 5 Indiana counties are owned by investors

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INDIANAPOLIS — The Fair Housing Center of Central Indiana released a report showing investors own almost half of all rental homes in Marion, Johnson, Hamilton, Hancock and Hendricks counties.

A significant portion of those investors are from out of state.

It's leading to a decrease in home ownership. The Fair Housing Center of Central Indiana said Indianapolis has more investor-owned properties than other metropolitan areas across the country.

In Marion County, there are 58,554 rental homes in total. Of that amount, 48% are owned by investors.

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Amy Nelson and the Fair Housing Center of Central Indiana also looked at what types of investors are taking homes off the market.

21.9% are owned by out-of-state investors, and 14.4% are owned by mega investors.

Mega investors control more than 1,000 single-family homes, and they're often in similar blocks.

Nelson said tenants renting from out-of-state investors often experience issues with communication and timely maintenance.

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Another problem: local potential home-buyers can't compete with investors in the housing market.

"They're coming with cash payments, and most individuals buying their first home or buying starter homes are going to have a mortgage, and they simply can't compete," said Nelson.

It's a challenge Candice Childs has seen in the real estate world.

"There are some houses where none of their representatives have walked the property, and they're making offers that are higher than the asking price, not even caring about the appraisal. They just want the property," said Childs.

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"There simply just aren't homes available, and we can't build homes fast enough to make up for the amount of homes that have been pulled from our market by these companies, who again, are flipping them into rental homes, and those same families are renting those homes at high prices, and they can't save for home ownership," said Nelson.

The process to buy or rent a home might be difficult, but Childs encourages you to keep trying.

"Don't get too discouraged, but also be realistic. There may have to be some sacrifices that you make," said Childs.

The Fair Housing Center said it wants to hear from you if you are having trouble with out-of-state landlords.

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"It was a significant budget hit to put this report together, but we felt it was something that we needed to get to the public because we are seeing decreases in home ownership levels and we want people to be aware," said Nelson.