Are there any BP members currently working the BRRRR strategy or fix and flip in the Des Moines, Urbandale, Waukee or Grimes Iowa area?
I’m networking with folks and would love to hear any success stories from people doing this
Rob - are you looking to rehab or wholesale?
I’ve been investing or about 8 years now.
I’m focused on rehab by creating value to the property and improving the community the property is located in. After the property is renovated I rent it out. I’m a buy hold investor working the brrrr strategy.
How are this going for you?
I purchased a duplex in Ankeny in January. Both sides are/were 2 bedroom, 1 bath, with a finished family room in basement. I house hacked and added a 3rd bedroom and 2nd bath in the side I live in. Inherited tenants in the other side. Remodel is now complete and ready to rent out the 3 bed 2 bath side, while I move into the SFH we purchased. Providing the place rents within the next couple weeks, it will have gone very well!
I’m also interested in meeting some people working the brrr strategy in Des Moines, I am currently doing fix and flips in Des Moines trying to save enough to buy rentals ... and my own first home
Bought a house in Waukee at the end of last year. Planning to BRRR it, but the rehab (full cosmetic) is dragging on due to difficulties with my contractor. I’ve been watching the Waukee sale and rental markets closely for a while now. I have 2 conclusions:
1.) houses sell fast, and you should probably hope for the 1% rule at best.
2.) SFR rentals don’t pop up that often, relative to WDM/Urbandale/etc. I’m hoping that this is indicative of a strong market.
We've been at it for 3-4 years now. BRRRR has worked for us. Initially we lived in places as we did them. There's aggressive projects to take on where I feel that there's still money to be made but there's not the volume of good deals out there, that there was 3-5 years ago.
I'm taking a little step back now after a monster project that we moved in (to windsor heights) to re assess what best to do with my time.
My wife Rachel has also been active. We're up to 10 units now after the last roughly 3.5 years of hard work.
We're focused on Des Moines metro and Ankeny. I attribute early success to timing, hard work, and I think we've focused on putting out a good product. We like our tenants and they like our properties.
It really depends what price range and area you're looking in. Des Moines is a hot market right now and there are a lot of investors because of that. If you're just starting out you may not be able to be as picky and have to put in more work than most investors. I have a few people wanting to flip and you really have to put a lot of time in and be able to go look at properties as soon as they list, or find contacts to help you get in before they list.
Currently co-own 3 SFRs in Des Moines, IA. Been here 10 years, former grad/undergrad student at Drake. Financial analyst by day, more so serious RE investor after-hours. I've some questions re: accurate ROI/forecasting performance for current RE investments and would love to chat with those who have some thoughts/experience. This is very important for us quants as it determines max price we are willing to bid on a property.
Attempting to expand RE investments by buying 1-2/year or more with current business partners (one actuary, another actuary/extreme handyman, programmer and myself). The 2018 Des Moines market is tough, especially purchasing properties near Drake (own 2 walking distance and 1 in the Beaverdale area/house hacking). Recently outbid on 3 properties.
Always open to brainstorming ideas/RE strategies.
Finding a deal in Des Moines is a challenge. There are just too many people out there with straight cash (or close to it) once a piece of property hits the conventional channels (MLS, craigslist, zillow, etc.). Over the years, I've found you need to either: (1) look forever and get lucky (fall into a good deal - it *does* happen); (2) find something no one else wants but that you believe has potential (e.g., something in a marginal market you think will turn OR something that's TONS of work if you've got the sweat equity and/or cheap labor to throw at it); or find it before it hits the conventional channels.
Getting outbid sucks. Been there, done that, tons of times.
Just thought I'd follow up on this.
The last tour I took with my agent was bleak, to say the least.
I've shifted my time to another business area of focus, for now... Selling our bucket truck.
Money's not in it right now - too many arm chair investors. I say that only being 4 years in but we've taken on those monster projects :)