Investing in the surrounding Midwest states

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Investing in the surrounding Midwest states

Stephen Jones
Rental Property Investor · IL · Member since 2019 · 285 posts · 137 votes

BP,

Good morning! I am a multifamily investor in southern Illinois. My goal is to start getting out of my backyard and comfort zone and start investing in nearby states (Iowa, Kentucky, Missouri, Indiana, possibly even Wisconsin). If anyone has any information on the best areas in these states to start a portfolio in, I'm all ears! 

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Richard Shahnazi
Real Estate Agent · Iowa City, IA · Member since 2019 · 25 posts · 14 votes
5y

@Stephen Jones Hey Stephen! I’m an investor and realtor here in Iowa City. The University of Iowa and large university hospital here provide for a very nice rental market. We have strong infrastructure for an out of state investor: excellent property managers, contractors, cleaning companies, etc.

I’m more than happy to do video tours of homes and get some leg work done for an out of state investor. Let me know if I can be of service!

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  • Jason MalabuteBusiness Member
    Accountant · Los Angeles, CA · Member since 2016 · 2k+ posts · 899 votes
    5y
    Originally posted by @Stephen Jones:

    BP,

    Good morning! I am a multifamily investor in southern Illinois. My goal is to start getting out of my backyard and comfort zone and start investing in nearby states (Iowa, Kentucky, Missouri, Indiana, possibly even Wisconsin). If anyone has any information on the best areas in these states to start a portfolio in, I'm all ears! If there are any investors/realtors in these areas, let's connect! Feel free to reach out! Thanks!

    Hi Stephen, Indy is a great market to start in

    Malabute & Company CPAs525 Reviews
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    3Reply
  • Stephen Jones
    OP
    Rental Property Investor · IL · Member since 2019 · 285 posts · 137 votes
    5y

    @Jason Malabute

    What cities are you referring to? I would imagine Indy is a tough spot to find anything because it gets scooped up so quick.

    0Reply
    • Jason MalabuteBusiness Member
      Accountant · Los Angeles, CA · Member since 2016 · 2k+ posts · 899 votes
      5y
      Originally posted by @Stephen Jones:

      @Jason Malabute

      What cities are you referring to? I would imagine Indy is a tough spot to find anything because it gets scooped up so quick.

      yes but you can say that anywhere else in the country

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  • Richard Shahnazi
    Real Estate Agent · Iowa City, IA · Member since 2019 · 25 posts · 14 votes
    5y

    @Stephen Jones Hey Stephen! I’m an investor and realtor here in Iowa City. The University of Iowa and large university hospital here provide for a very nice rental market. We have strong infrastructure for an out of state investor: excellent property managers, contractors, cleaning companies, etc.

    I’m more than happy to do video tours of homes and get some leg work done for an out of state investor. Let me know if I can be of service!

    6Reply
    • Nathan FaseltBusiness Member
      Rental Property Investor · Iowa City, IA · Member since 2019 · 94 posts · 35 votes
      5y
      Originally posted by @Richard Shahnazi:

      @Stephen Jones Hey Stephen! I’m an investor and realtor here in Iowa City. The University of Iowa and large university hospital here provide for a very nice rental market. We have strong infrastructure for an out of state investor: excellent property managers, contractors, cleaning companies, etc.

      I’m more than happy to do video tours of homes and get some leg work done for an out of state investor. Let me know if I can be of service!

      @Richard Shahnazi is absolutely right I run a property management company in Iowa City as well as own property. Would also love to help you along the way as well as give you some insight from the management side. Also, Iowa city has much more than just student housing that is so often assumed, the multi-family market is strong and has surrounding suburbs that are some of the fastest growing towns in Iowa.  

      2Reply
  • Stephen Jones
    OP
    Rental Property Investor · IL · Member since 2019 · 285 posts · 137 votes
    5y

    @Richard Shahnazi

    Richard,

    Thanks for reaching out man! Primarily, I'm looking for mid-larger multifamily property. Anywhere between 12-64 units (which I know is hard to come by) I am somewhat familiar with the Iowa market due to the fact that I went to school at UNI. Anyway, if anything comes up feel free to let me know man! Thank you.

    0Reply
  • Darson GranthamBusiness Member
    Realtor · Des Moines · Member since 2018 · 304 posts · 253 votes
    5y

    Hi @Stephen Jones,

    Local Central Iowa (Des Moines) investor and agent here.  Half of my clients are out-of-state investors buying in Des Moines Iowa.  Des Moines area is not #1 in any of the top categories, but it is top 10 in many of the criteria that investors choose.  

    Happy to schedule a call to discuss some properties that my clients have purchased giving you numbers and idea of what returns are expected for each property.  

    Some on market and some off-market, but primarily they are buying 2-10 unit properties. 

    [email protected]515-612-6013
    3Reply
    • Stephen Jones
      OP
      Rental Property Investor · IL · Member since 2019 · 285 posts · 137 votes
      5y
      Originally posted by @Darson Grantham:

      Hi @Stephen Jones,

      Local Central Iowa (Des Moines) investor and agent here.  Half of my clients are out-of-state investors buying in Des Moines Iowa.  Des Moines area is not #1 in any of the top categories, but it is top 10 in many of the criteria that investors choose.  

      Happy to schedule a call to discuss some properties that my clients have purchased giving you numbers and idea of what returns are expected for each property.  

      Some on market and some off-market, but primarily they are buying 2-10 unit properties. 

      @Darson Grantham

      Thanks for reaching out. That would be great to get on a call. I will send you a message here shortly.

      0Reply
  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    5y

    If you look in MO look in Kansas City and surrounding suburbs. 

    4Reply
    • Stephen Jones
      OP
      Rental Property Investor · IL · Member since 2019 · 285 posts · 137 votes
      5y
      Originally posted by @Caleb Brown:

      If you look in MO look in Kansas City and surrounding suburbs. 

      @Caleb Brown

      Will do. Thanks!

      0Reply
  • Account Closed
    Rental Property Investor · Torrance, CA · Member since 2016 · 724 posts · 1k+ votes
    5y

    @Stephen Jones what’s wrong with Illinois? The only reason I invest out of state is because I have to. If I lived in a market that would cashflow I wouldn’t even think of investing OOS.

    0Reply
    • Stephen Jones
      OP
      Rental Property Investor · IL · Member since 2019 · 285 posts · 137 votes
      5y
      Originally posted by @Account Closed:

      @Stephen Jones what’s wrong with Illinois? The only reason I invest out of state is because I have to. If I lived in a market that would cashflow I wouldn’t even think of investing OOS.

      @Account Closed

      It's not like I'm completely disregarding the Illinois market, I've found some good cash flowing deals here, currently I am just struggling to find deals and would potentially like to diversify my portfolio in a different, nearby state. 

      1Reply
  • Frank Rodrigues
    Investor · Kansas City, MO · Member since 2021 · 110 posts · 65 votes
    5y

    I have had great success in the Kansas City market. I would definitely recommend looking there. The appreciation in that market over the last 5 years has been phenomenal. Houses that were sold 5 years ago for 60k now are worth as much as twice that amount today with a consistent double-digit casflow annual return. PM if you have any questions about the market. Best of luck!

    3Reply
    • Shannon D OlsenPro Member
      Rental Property Investor · Wichita, KS · Member since 2021 · 9 posts · 8 votes
      5y
      Originally posted by @Frank Rodrigues:

      I have had great success in the Kansas City market. I would definitely recommend looking there. The appreciation in that market over the last 5 years has been phenomenal. Houses that were sold 5 years ago for 60k now are worth as much as twice that amount today with a consistent double-digit casflow annual return. PM if you have any questions about the market. Best of luck!

      I second that re: KCK!

      0Reply
  • Stephen Jones
    OP
    Rental Property Investor · IL · Member since 2019 · 285 posts · 137 votes
    5y

    @Nathan Faselt

    Definitely interested in Iowa city, maybe tomorrow we could potentially get on a phone call to discuss more. Thanks for reaching out!!

    1Reply
  • Tim Polk
    Realtor · NWI (Northwest Indiana) · Member since 2018 · 63 posts · 36 votes
    5y

    @Stephen Jones

    I'd highly recommend Northwest Indiana. It's close to you, Indiana is a much more landlord friendly state and the returns are great. I personally have multi families in both and as of right now only looking to expand in Indiana.

    Be happy to have a conversation.

    4Reply
    • Stephanie Ro
      New to Real Estate · Lockdown Capital of the World Melbourne, Australia · Member since 2021 · 60 posts · 26 votes
      5y
      Originally posted by @Tim Polk:

      @Stephen Jones

      I'd highly recommend Northwest Indiana. It's close to you, Indiana is a much more landlord friendly state and the returns are great. I personally have multi families in both and as of right now only looking to expand in Indiana.

      Be happy to have a conversation.

      I researched Indianapolis yesterday! I don't know a thing about the State, but hear it's growing, it's landlord friendly and property taxes are relatively low. Can't wait to learn more about the suburbs. Also, I'm looking at Kentucky near Cincinnati. 

      2Reply
  • Stephen Jones
    OP
    Rental Property Investor · IL · Member since 2019 · 285 posts · 137 votes
    5y

    @Tim Polk

    Thanks a lot Tim! Looking forward to talking to you!

    0Reply
  • Jonathan KlemmBusiness Member
    Moderator
    Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
    5y

    @Stephen Jones - I had the same question as @Account Closed if you are doing well in your backyard why switch it up?

    If investing is borings that's a good thing haha

    There is definitely an endless amount of old inventory up in Chicago so if you didn't want to leave the stay you could just come further north.

    What's your strategy thus far?  Buy & hold small multi, single-family, or larger buildings?

    [email protected]
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    • Jonathan KlemmBusiness Member
      Moderator
      Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
      5y
      Originally posted by @Jonathan Klemm:

      @Stephen Jones - I had the same question as @Account Closed if you are doing well in your backyard why switch it up?

      If investing is borings that's a good thing haha

      There is definitely an endless amount of old inventory up in Chicago so if you didn't want to leave the stay you could just come further north.

      What's your strategy thus far?  Buy & hold small multi, single-family, or larger buildings?

      @Stephen Jones - That's awesome!  43 units!  

      I actually have a great lead for a portfolio deal of 28 properties.  Let me know if you are interested

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  • Stephen Jones
    OP
    Rental Property Investor · IL · Member since 2019 · 285 posts · 137 votes
    5y

    @Jonathan Klemm

    Right now I currently own 43 multifamily units. My goal is to scale and to scale as quickly as I can. I want to move into larger multifamily so I’m currently in search for somewhere between 12-64 units depending on the deal.

    Again, I’m not backing away from investing in my backyard, I’ve just been struggling coming across deals as of late so therefore I’m willing to diversify my portfolio elsewhere. Some cities in the surrounding states intrigued me (Davenport, Paducah, Terra Haute, etc.)

    2Reply
    • Alex Bock
      Investor · Davenport, IA · Member since 2016 · 121 posts · 45 votes
      5y
      Originally posted by @Stephen Jones:

      @Jonathan Klemm

      Right now I currently own 43 multifamily units. My goal is to scale and to scale as quickly as I can. I want to move into larger multifamily so I’m currently in search for somewhere between 12-64 units depending on the deal.

      Again, I’m not backing away from investing in my backyard, I’ve just been struggling coming across deals as of late so therefore I’m willing to diversify my portfolio elsewhere. Some cities in the surrounding states intrigued me (Davenport, Paducah, Terra Haute, etc.)

      Hi Stephen! 

      I am also an investor in Davenport and have a few possible leads for you. I'll send you a message and we can chat more if you would like. 

      0Reply
    • Marquez Davis
      Investor · Davenport, IA · Member since 2020 · 8 posts · 3 votes
      5y
      Originally posted by @Stephen Jones:

      @Jonathan Klemm

      Right now I currently own 43 multifamily units. My goal is to scale and to scale as quickly as I can. I want to move into larger multifamily so I’m currently in search for somewhere between 12-64 units depending on the deal.

      Again, I’m not backing away from investing in my backyard, I’ve just been struggling coming across deals as of late so therefore I’m willing to diversify my portfolio elsewhere. Some cities in the surrounding states intrigued me (Davenport, Paducah, Terra Haute, etc.)

      Good morning, Stephen. I currently own 11 rental units across 3 duplexes and 5 single families here in Davenport, IA, all acquired in the past 11 months. I'm born and raised here and have lived and have loved investing in our area due to it being surrounded by 5-7 mid sized communities that make up the Quad Cities. I'm like you with the same desire to grow and scale quickly. Great cash flow and appreciation in areas like Davenport and Bettendorf, IA. Reach out if you have any questions or would like to connect!

      1Reply
  • Melinda McDonald
    Property Manager · Kansas City · Member since 2021 · 58 posts · 42 votes
    5y

    Good morning Stephen - 

    I would take a look at Kansas City.  We are still seeing good values for properties and neighborhoods that are changing in a good way. Feel free to reach out if I can provide any details that would be helpful to you.

    0Reply
    • Stephen Jones
      OP
      Rental Property Investor · IL · Member since 2019 · 285 posts · 137 votes
      5y
      Originally posted by @Melinda McDonald:

      Good morning Stephen - 

      I would take a look at Kansas City.  We are still seeing good values for properties and neighborhoods that are changing in a good way. Feel free to reach out if I can provide any details that would be helpful to you.

      @Melinda McDonald

      Good morning Melinda, I do look at KC often, it just seems nothing pops up that I am extremely interested in. Anymore, it seems like the only good cashflowing properties that appreciate over time are all off market. Thoughts?

      2Reply
  • Scott Forney
    Rental Property Investor · Washburn, IL · Member since 2020 · 16 posts · 8 votes
    5y

    @Stephen Jones I invest in central illinois, cash flow is good, but always had the plan to get my feet wet in my back yard then get into an area with more appreciation. In my opinion, as the world becomes more virtual and people can work from anywhere, Illinois will see more people leaving due to low job growth, taxes, and a poorly ran government. I've kept my eye on Iowa and Indiana as well.

    0Reply
    • Stephen Jones
      OP
      Rental Property Investor · IL · Member since 2019 · 285 posts · 137 votes
      5y
      Originally posted by @Scott Forney:

      @Stephen Jones I invest in central illinois, cash flow is good, but always had the plan to get my feet wet in my back yard then get into an area with more appreciation. In my opinion, as the world becomes more virtual and people can work from anywhere, Illinois will see more people leaving due to low job growth, taxes, and a poorly ran government. I've kept my eye on Iowa and Indiana as well.

      @Scott Forney

      Completely agree. I think you and I are on the same wavelength. The state of Illinois in general, scares me. Although my assets now cash flow very well. I went to college in Iowa so I know a very RE agents in the davenport/Cedar Rapids area, but trying to network throughout those states that I mentioned to see if anything is out there. Anymore, its hard to fin good properties on market. 

      0Reply
  • Scott Forney
    Rental Property Investor · Washburn, IL · Member since 2020 · 16 posts · 8 votes
    5y

    @Stephen Jones I agree. I have a hard enough getting contractors to commit here, I think finding good contractors will be the biggest challenge as you get further away. Hopefully a PM can help with that! Good luck in your search!

    1Reply
  • Kevin Hart
    Real Estate Agent · Louisville, KY · Member since 2014 · 257 posts · 172 votes
    5y

    Kentucky has some solid markets, Louisville, Lexington, and Northern KY

    1Reply
  • Allen L.
    Rental Property Investor · Chicago and mainly invests in KS remotely · Member since 2018 · 360 posts · 314 votes
    5y

    Wichita KS is quite nice, it's similar to KCMO but *generally* less crime and for the type of cash flowing properties that you're looking for, I think tenant base and house price is better. We've had great appreciation in the past 2 years. 

    2Reply
  • Stephen Jones
    OP
    Rental Property Investor · IL · Member since 2019 · 285 posts · 137 votes
    5y

    @Allen L.

    Good call on Wichita. I didn’t even think about that area. I will look more into it. Thank you!

    1Reply
    • Allen L.
      Rental Property Investor · Chicago and mainly invests in KS remotely · Member since 2018 · 360 posts · 314 votes
      5y
      Originally posted by @Stephen Jones:

      @Allen L.

      Good call on Wichita. I didn’t even think about that area. I will look more into it. Thank you!

      Nobody ever thinks about Wichita 😂 which is why buying here still feels like 2015. 

      2Reply
  • Ben Martin
    Realtor · Cedar Lake · Member since 2020 · 17 posts · 1 vote
    5y

    @Stephen Jones

    I’m an investor and realtor in Northwest Indiana. Would you be interested in properties in this area? I would be happy to help you out.

    0Reply
  • Stephen Jones
    OP
    Rental Property Investor · IL · Member since 2019 · 285 posts · 137 votes
    5y

    @Ben Martin

    Absolutely! If the deal works, I’m always interested!

    0Reply
  • Stephen Jones
    OP
    Rental Property Investor · IL · Member since 2019 · 285 posts · 137 votes
    5y

    @Allen L.

    😂. Do you currently own multi’s in Wichita?

    0Reply
  • Henry Lazerow
    Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
    5y

    Would love to connect. Been looking at some deals in central/southern IL looks interesting but curious how cap/ex works with such low rents to stay profitible. Do you focus on higher rents $800+ or do the cheap $600-650 type buildings?

    0Reply
    • Stephen Jones
      OP
      Rental Property Investor · IL · Member since 2019 · 285 posts · 137 votes
      5y
      Originally posted by @Henry Lazerow:

      Would love to connect. Been looking at some deals in central/southern IL looks interesting but curious how cap/ex works with such low rents to stay profitible. Do you focus on higher rents $800+ or do the cheap $600-650 type buildings?

      @Henry Lazerow

      I'd be happy to connect! To answer your questions, really both, as long as the numbers work. For instance, I own an 8 flex in a town where rents are higher 900-1000$. The town over, 15 mins away I own 28 units where rents range from 575-700$. (Which I'm contemplating on pushing up in the near future)

      0Reply
  • Laura MarksBusiness Member
    Real Estate Broker · Independence, MO · Member since 2020 · 127 posts · 111 votes
    5y

    Hi Stephen, 

    I'm an agent with a strong background in Property Management in KC and I work with lots of investors. I currently have two possible deals with a 4plex (occupied with long term tenants at market rent) and a sfh that is vacant and needs a bit of rehab but way below ARV. I highly recommend you look at Independence, Raytown and NKC. Feel free to message if you'd like, I'm happy to answer any questions that you may have.

    816-592-1185
    2Reply
  • Arif Siddiqi
    Rental Property Investor · San Jose, CA · Member since 2018 · 42 posts · 22 votes
    5y

    @Stephen Jones Just sent you a DM

    0Reply
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