Buying rentals in Central Nebraska

[David A.]

Hello All. I would like your thoughts on rental property CoC ROI in central Nebraska (Hastings, Grand Island, Kearney) vs other areas in the US. The properties that I have looked at so far all seem to have low CoC (when you account for vacancy, CapEx, R&M, & property management). I'm starting to think that the return just isn't at a desirable level in central Nebraska vs what I can get from... lets say Stocks.

I am looking for multifamily units (ideally 4 plex) that are 1bd/bth or 2bd/1bth per unit. I currently live in Northern Colorado and will be investing from a distance and hiring a local property management company. I am looking to buy in Central Nebraska because this is where I grew up, my family still lives in the area, I have a pretty good network of people, and I feel like I know the area. I am very interested in any thoughts you want to put out there.

[Ryan Mahoney]

Hi David. I just purchased a duplex in Hastings. Costs can be low but a lot of properties are older. Be sure to do solid due diligence and get quality inspections. Hastings and Kearney in particular have decent sized college student bases which can give you a good rental pool if you are willing to rent to that group. From what I see rentals are in demand and flipping affordable housing could be lucrative as housing tends to be higher end or low quality at the starter level. An affordable, good looking home would sell fast.