Small Town Investing

[Brandon Sexton]

I currently reside in Des Moines, IA and aim to purchase small multi family properties 4-20 units. I believe that Des Moines is a great market but many others are also starting to notice and invest here. Because of this I have expanded my scope to also look to other midsize cities in and around Iowa such as Omaha, Cedar Rapids, and the Quad Cities. During my property search I have come across many properties in small towns. Small towns have the pros and cons such as they are cheap and there is less competition but also obvious cons such as lower rents and uncertain volatile futures due to jobs coming or going. I do not plan on investing in small towns but it is sometimes quite enticing due to low prices. What are some of you folks doing in regards to investing in small towns such as strategies or horror stories. Thanks in advance!

[Anthony Dooley]

I love small towns. If you own rental property in a small town a few things happen. When you post it for rent, you are the only show in town. There is nothing available to rent in a small town, so you corner the market and get a lot of response. Secondly, once you get a tenant in your property, they stay forever. Why? Because there isn't anything else available to rent. I get higher rent in small towns because people will actually bid up my asking rent in order to get the house.