The Fixer-Upper is Fading: What It Means for Value-Add Investors in Indianapolis
For decades, the fixer-upper was the go-to play for investors and homebuyers looking for sweat equity. HGTV glamorized it, local flippers built businesses around it, and buyers dreamed of unlocking instant value through elbow grease and vision.
But in 2025, the tide is shifting. A recent article from Better Homes & Gardens highlights a nationwide decline in interest in fixer-upper homes. Buyers are increasingly looking for turnkey properties—and willing to pay a premium to avoid the headaches of renovation.
At Steele Ventures, we’ve built a portfolio around smart renovation and value-add properties. So when we see a trend like this, we pay close attention. But rather than panicking, we see it as an invitation to refine how we define "value" in Indianapolis real estate investment.
This isn’t the end of BRRRR or rehab-based strategies—it’s the evolution of them.
Why Buyers Are Saying “No Thanks” to Fixer-Uppers
Let’s break down the main reasons interest in fixer-uppers is fading:
Renovation Costs Are Soaring: Material prices remain inflated, and labor costs are high due to skilled worker shortages.
Uncertainty Around Permits and Delays: Renovating a home has never been simple, but in today’s regulatory and supply chain environment, it’s a gamble.
Instant Gratification Culture: Many millennial and Gen Z buyers don’t want a “project”—they want a finished product.
Financing Challenges: Appraisals and lending rules are stricter for homes that need significant work. Some fixer-uppers don’t qualify for traditional financing at all.
All of this adds up to a shift in demand: buyers want modern rental homes in Indianapolis, not a to-do list.
How Steele Ventures Uses This Trend to Our Advantage
We don’t chase headlines—we read between the lines. For us, this trend confirms what we’ve known for a while: renovations only add value when they solve real problems for real people.
So here’s how we’re adapting:
Rehab Smarter, Not Bigger: Instead of gutting properties, we focus on functional upgrades—HVAC systems, insulation, plumbing, and kitchens that make a difference in daily life.
Offer Turnkey Rentals: Our tenant-focused housing model means our homes are ready for move-in on Day 1. Paint’s fresh, appliances work, and tenants feel proud of where they live.
Prioritize Speed and Consistency: We’ve built strong real estate partnerships with contractors and suppliers to ensure we can renovate quickly and predictably. That minimizes carrying costs and vacancy.
Our approach still fits perfectly within the BRRRR strategy, but it’s grounded in today’s buyer psychology—not yesterday’s playbook.
Fixer-Uppers vs. Value-Add Properties: Know the Difference
Let’s be clear: not all distressed homes are created equal.
A fixer-upper often implies a home in rough shape that will require costly and lengthy work just to meet livable standards. It’s a gamble for a first-time buyer, and it can be risky for investors if due diligence isn’t airtight.
A value-add property, on the other hand, is one that has good bones and solid potential—but needs targeted improvements to reach its highest and best use. That’s our sweet spot at Steele Ventures.
We look for homes that:
Are structurally sound
Have outdated but functional systems
Need cosmetic upgrades, layout tweaks, or energy efficiency improvements
Are in neighborhoods with growing demand for safe, stable rental housing
This is how we continue to source off-market property deals that support our mission and ROI expectations.
How the Shift Affects Indianapolis Real Estate Investment
Indianapolis is uniquely positioned in this national trend. While some cities saw pandemic-era buyers overpay for teardown-level fixer-uppers, Indy maintained relatively balanced inventory and pricing.
Now, as the fixer-upper trend cools, here's how Indy stands out:
Affordability Attracts Renters: As buying becomes harder due to interest rates and costs, more residents turn to rental housing. Our modern rental homes in Indianapolis fill that gap.
Less Competition for Distressed Homes: If buyers no longer want fixer-uppers, but wholesalers and landlords still need to sell them, we’re ready. Our rehab teams turn these into beautiful homes fast.
Local Talent, Local Speed: We’re not relying on out-of-state GCs or remote project managers. Our real estate partnerships on the ground make us agile in a market where speed = profit.
We’re also seeing more investors from other states reach out—looking for ways to partner with experienced operators who know how to turn old homes into stable, income-generating assets.
The BRRRR Strategy Is Still Alive—Just More Focused
Let’s not forget: the BRRRR strategy thrives when applied with discipline.
In this environment, it works best when:
You acquire value-add properties at a discount
You control renovation budgets tightly
You rent to reliable, working-class tenants at fair rates
You refinance based on improved performance, not speculation
At Steele Ventures, we follow this model because it’s steady, adaptable, and grounded in the reality of the Indianapolis market. It’s not a shortcut to riches—it’s a blueprint for sustainable portfolio growth.
Conclusion: Fixer-Uppers May Be Out, But Smart Renovation Is In
If the “fixer-upper” as we knew it is fading, that’s not bad news for thoughtful investors—it’s an opportunity. Buyers and tenants want homes that work. They don’t want risk. They want reliability.
At Steele Ventures, we’re here to meet that need—with strategic rehab, market-aware pricing, and a commitment to making sure every house we touch becomes a home someone can thrive in.
This trend isn’t the end of value-add investing—it’s the beginning of its next evolution.