Rental Property Investor · Post Falls, ID · Member since 2019 · 21 posts · 6 votes
hello BP community
Im considering starting my investment journey in Iowa because it seems to be an affordable investment entry market, but is it really? can any of you savvy investors out there who live in Iowa help me out and point me in a good direction? I appreciate your responses.
Realtor · Des Moines · Member since 2018 · 304 posts · 253 votes
6y
Hey Nathan, I’m a local boots on the ground investor in DSM. It is an area that has value but you can’t just throw a dart and find a good deal. You do have to do some research, but there is value!
CCIM · Des Moines, IA · Member since 2014 · 341 posts · 170 votes
6y
There are a lot of good areas in Iowa that work really well. But it all depends on what you’re looking for. I work with a lot of out of state investors, which is a completely different animal than someone that’s in town and can oversee everything. I’m a huge believer in developing your Personal Investment Philosophy. Otherwise you’re chasing whatever someone else calls a good deal. If I can help in answering your questions and help you get a better understanding of the different areas in Iowa, I’d love to help.
Residential Real Estate Broker · Dubuque, IA · Member since 2016 · 19 posts · 12 votes
6y
@Nathan Fraser
Nathan, is there a specific market in Iowa that you are looking at? I might have some agent or other investor connections that are in the investment space to connect you with if you have an idea geographically where you would like to be in Iowa. I invest and sell in the Dubuque, Iowa area.
@ChaseKeller would be good to connect with if you are from out of state.
Real Estate Agent · Indianola, IA · Member since 2019 · 43 posts · 44 votes
6y
Hi Nathan, welcome! My husband and are new investors in Iowa south of Des Moines. 5 doors so far and excited to grow. Iowa is a great place to be, however as mentioned, you have to do some digging and research to find great deals. Best of luck!
Rental Property Investor · Marion, IA · Member since 2016 · 150 posts · 74 votes
6y
@Nathan Fraser Hello and welcome to BP/Iowa. I'd agree with others that Iowa brings a good amount of stability in your investment properties. I'm in the Cedar Rapids/Marion area (2nd largest metro area in the state).
There are opportunities. I don't personally experience great appreciation in my properties. Last year was the highest that I've experienced at around 4%.
I find the best deals are off-market deals. IMHO the MLS has far fewer deals than foreclosures, investor to investor, and other off-market sources.
Rental Property Investor · Mason City, IA · Member since 2017 · 27 posts · 18 votes
6y
@Nathan Fraser I’m in northern Iowa I have 5 houses so far. I typically am buying 2br 1 baths for around 35k doing a light rehab and refinancing around 52-58k I also have a 3br I bought for 40 I will paint it and do new carpet in bedrooms and it will rent for 700. The 2brs all rent for 625. I would consider myself a rural investor one town is around 28k and the other is a few thousand. Very stable so far!
Rental Property Investor · Post Falls, ID · Member since 2019 · 21 posts · 6 votes
6y
Matthew H.
your cash flow must be really good with those numbers. thanks for sharing. The responses that i continue to receive on this topic are letting me know I'm heading in a good direction.
Rental Property Investor · Mason City, IA · Member since 2017 · 27 posts · 18 votes
6y
@Michael Chilton the ones in the smaller town are around 660 the 3br in that town is1k and the ones in mason just jumped up since they started building that hockey arena to 880
Rental Property Investor · Des Moines, IA · Member since 2018 · 40 posts · 16 votes
6y
Hi @Nathan Fraser, we've invested in several towns around central Iowa. As with most decisions, you'll find positives and negatives about most areas - and need to find the best fit for your goals and objectives. We have spent our focus in central Iowa because we live there, and by the time we realized that we didn't need to do all the work ourselves, we had build out our own systems. Before we knew that teams exist to help investors work out of state (should have engaged with BP and podcasts sooner!), we had tested different cities, property values, property types, places to find deals, contractors, property managers, banks... it all took a while to find a nice formula, but we did. We've dabbled in Ames (low rent/value ratio, university town), Des Moines suburbs like Waukee/Ankeny/Altoona (deals there until ~2015, now high prices), small towns like Elkhart/Granger (good returns, small pools of renters/professionals), and Des Moines 'proper'. In the end, we're 90% in the lower priced (~$100k) cashflow-focused homes in Des Moines 'proper'. These fit our goals :-)
Hi chad. I am also from central Iowa and I am just starting out investing in single family homes. We are also using The brrrr method to buy property’s that are lower end -100k.
Investor · Des Moines, IA · Member since 2013 · 137 posts · 49 votes
6y
I like properties in the $130-$160k range in the Des Moines Metro. I just think you have a better selection of respectful tenants in that kind of house. I don't get the cap rates of cheaper ones, but I would rather have one better asset than two marginal ones... and with that in mind I've built 6 SFRs in the past year-I THINK they will perform great. Ask me again in a couple years if they were worth the trouble!
Rental Property Investor · Post Falls, ID · Member since 2019 · 21 posts · 6 votes
6y
Hello All
I have finally had a chance to sit down and do some homework on Iowa. One thing I have noticed, from what online resources there are, that property crime seems to be very high in most city centers. If this is the case, how are you all navigating the high risk of property crime on your investments?
@Nathan Fraser I am just about in the exact same shoes you were in, my wife and I are looking at our first rental/BRRR investment and seeing some interesting opportunities in Iowa. Did you ever end up executing on any deals?