New development surplus in Cedar Rapids

5 Replies

Hello, I am curious to hear from  fellow Iowa investors about the effects of newly constructed rental properties on existing properties and rents.  My first property is a Single Family house very near to downtown Cedar Rapids.  Within a mile radius of my house there seems to be hundreds of apartments that have either recently opened or are currently under construction, and I'm sure this is also the case with other Iowa Urban cities as well.  So my question to you is are you concerned about these newly constructed apartments and their possible effects on values and rents for other rental properties in the area?  Is this something to pay close attention to or simply normal progression of the times?

I think we've have experienced a significant softening of the market over the past year as a direct result of all the new builds. I'm looking forward to 2018 having fewer new units coming online so the market can begin to rebound.

I'd agree that there is a softening. In the past year, I've experienced longer time to fill vacancies and I lowered rents a bit in my Marion and Cedar Rapids properties. For acquisitions, I feel that it's still a seller's market and it's been harder to find properties with enough margin to make a decent rental or flip opportunity.

It's like Iowa weather, except on a slower timeline, give it a year or so and it will be different!

Sort of, I've found that I can increase my margin by utilizing Facebook. I have this 3 bedroom, 2 baths that I've been renting for $1500 on 16th Ave. But I've essentially been able to use my FB marketing to create bidding on my property. 

Those new apartments in NewBo being build by Hatch Development aren't allowing pets. If you're okay with a dog, you can probably greatly increase your margin in the area. 

Originally posted by @Jon Sladek :

Sort of, I've found that I can increase my margin by utilizing Facebook. I have this 3 bedroom, 2 baths that I've been renting for $1500 on 16th Ave. But I've essentially been able to use my FB marketing to create bidding on my property. 

Those new apartments in NewBo being build by Hatch Development aren't allowing pets. If you're okay with a dog, you can probably greatly increase your margin in the area. 

How are you creating a bidding on your properties?

We are looking in the NewBo area...do you think the kind of units being built will change the dynamic of that area, perhaps eventually driving prices up? The new condos/lofts for sale in the area range from $180k-$400k) Is there a chance that rents will actually rise as appreciation could begin to happen as the area undergoes further gentrification? Open to hearing all perspectives.

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