How's the investing in Iowa going?

Question

Just a curious question for my  fellow investors in Iowa, specifically the Cedar Rapids area...

How's it going? Are you finding appropriately priced rentals for the market? I'm having a rough time, some people seem to be asking way to much for their buildings, or asking for 10,000 over the assessed value.

Marcus Curtis · Answer

Allow me to illustrate.

Derek Johnson · Answer

Throw me on this list, I'm in Waterloo but I could travel. Cedar Rapids isn't too far away.

Landon Elscott · Answer

I'm in Newton, IA - that's about 30 minutes east of Des Moines.  We've got some great bargains here for low priced housing that work well for rentals; however, if you start looking at the $150,000+ range, you're probably better off heading to Altoona, Ankeny, or any of the metro suburbs.  Despite the fact that you'd think cities like Ankeny would demand a huge premium for housing prices, I've found that you can get a much nicer house in a much nicer neighborhood that's been built far more recently for $200,000 or so than what that same money can buy in Newton - and that's sort of peculiar to me.  That said, it'd be an absolute miracle if you could get a cash flowing rental property here for that much money.  There's plenty of demand for rental units, just no one has the money to afford to pay rent on a $200,000 house and those that do are buying.  However, awhile back I secured my first rental property here and it required absolutely nothing in repairs, is cash flowing superbly, and was priced at a bargain.

Anyways, the city has been cracking down on slum lords and trying to revitalize the city through a vast number of development projects slated to tear down abandoned buildings.  Unfortunately, while their objectives are pretty good, the main problem I see at this point is that you have individuals on the board or that have become mayor and think that because they hold this position of administration that it somehow provides them the knowledge to make real estate development decisions.  Instead, what they need to do is tap into the local real estate investor community and those people with networking abilities to put those projects in the hands of experts so they take off.  But you know, that will never happen, I'm just a 26 year old "kid"...

I too, would enjoy getting together for coffee with some other Bigger Pocket investors, if for no other reason than finding some new friends that share similar interests.  And perhaps if interested, I've actually got some projects coming down the pipeline I'm hoping to secure by next spring, and as long as the partnership with this company works out as planned, I'll be looking to tap into some additional capital.  If anyone is interested in some equitable interest in these projects, let me know.  From a rental perspective, these projects are about as ideal as they get, and I'm in a unique position of getting early dibs since I have insider connections, so I'll just be looking for funding.

Austin Davis · Answer

@Landon Elscott , Account Closed  is correct about the group I started in Cedar Rapids.  As she said, I have been pretty busy with a baby and have been out of town for business for the last month and a half, so it has been impossible to get another meetup organized.  It does look like I will be home the 30th and 31st of this month, though.  After I confirm that I was going to try to send out a feeler for who would be interested.

I think you idea of making a Facebook page is great.  I will definitely be interested in the group too.  Once my schedule gets back on track, I will do my best to get back on my monthly schedule of having meetings.  If it would make it more convenient for people, we could combine meetings sometimes and I could help host in the Cedar Rapids area.  Whatever works to get local investors together, I am in total support of.

Thanks for starting this conversation, Rebecca.  Things are starting to slow down, so I will be much more involved in the near future.  Sorry to go off the grid for a while, BP...I have missed you.  :)

Adam Moehn · Answer

I feel the same way you do, Account Closed . It seems hard to find properties that are priced well enough to make them good rental properties.

Jedd Braunwarth · Answer

Account Closed as others said, if be interested too. Are you a wholesaler? Know if any distressed commercial properties or apartments in Des Moines too? Maybe we could grab coffee sometime.

Nathan Nickles · Answer

Hey Rebecca, I am investor in The Des Moines area. I have a couple leads on Rental properties.  would you be interested in the Des Moines area?

Account Closed · Answer

@Landon Elscott, @Austin Davis has an REI club started around Cedar Rapids... i haven't been to a meeting yet, and i understand he's been a little busy with a new baby. I think if you put out a feeler on here, there's quite a few of us that would show up to chat over coffee!! I'd be interested in the project(s) you've got in the works....

Account Closed · Answer

Absolutely, @Nathan Nickles! Feel free to send me a message! Thank you :)

Jedd Braunwarth · Answer

@Landon Elscott we need to talk!!! I have been looking at a few potential opportunities in Newton but have been hesitant only since I don't know much about the dynamics of Newton.

Also, I should have an official investor group established within the next month or so. I have been working on this to set this up for the past few months with a Keller Williams broker and also a loan office/drake landlord. A Facebook page is in the works! I'll throw you on the list and give you a shout when it is ready. We are planning on making it all free other than if/when we would have an event that we would need to rent space, food, etc. and that charge an event fee but that is much further down the road.

How's the investing in Iowa going?

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