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Updated almost 3 years ago on . Most recent reply

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8
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David Mulholland
  • Homeowner
  • Denver
8
Votes |
13
Posts

Anyone investing the Des Moines area?

David Mulholland
  • Homeowner
  • Denver
Posted

My daughter is about to start her first year at Drake University. Meanwhile, I am just starting out on this real estate investing journey and while I'd like to invest close to home (I live in Denver), I realize that other parts of the country might be friendlier for cash-flowing multi-family. 

Since I will be taking trips to Des Moines a few times a year for at least the next four years, I thought I'd explore investing there. I'm interested in small multifamily. Is anyone her investing in Des Moines? How has your experience been? 

Thanks for sharing!

Most Popular Reply

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300
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249
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Darson Grantham
  • Realtor
  • Des Moines
249
Votes |
300
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Darson Grantham
  • Realtor
  • Des Moines
Replied

Hey @David Mulholland, for some perspective the Des Moines market is slightly ahead of units sold currently YTD compared to 2021 same time period.  The pending sales (properties that are under contract) are down 30%.  So we are soon to see headlines that say "Des Moines Market down 30%" but in reality, this number is ONLY units sold, not the average price of properties sold.

I own some property near Drake, and many of the rental units in that area are actually not occupied by students in their first year of college. But if you are not necessarily looking to buyer HER a place to live right away, but to find a way to "write off" your travel expenses and stays in Des Moines, I think you'll be surprised at the quality of long term rental market in Des Moines.

You will want to pay close attention to the property taxes, as they are higher than most would expect, and also each property will have utilities set up in a different way, sometimes tenants pay, and sometimes landlord pays.  You'll want to inquire heavily there.

Lastly, pay close attention to the rental inspection certificate of each property.  Des Moines is notorious for giving investors a hard time in obtaining/renewing rental certificates and if you don't have one, the city can penalize you heavily. 

All that being said, 50% of my business is from out-of-state investors, so to fully answer your question, yes people are buying in Des Moines!  And if purchased with eyes wide open, most will say it was a good experience.

Send me a message and I'm happy to get on a zoom call with you to answer any other questions you may have!

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