Hi everyone, I'm getting started on my REI journey. Do any of you invest in IOWA? What cities would be good to invest in? The strategy I want to do is buy and hold. This will be my first investment and out of state as well. I live in Hawaii. Any recommendation is greatly appreciated! Thank you
Realtor · Des Moines · Member since 2018 · 304 posts · 253 votes
4y
@Mandy Adams Love that you are exploring the BP forums to gather info about an OOS area you are looking to invest in. I've psoted about this many times but to keep it short, Iowa in general is small, but investing in different areas is completely different. Des Moines vs Ames vs Coucil Bluffs/Omaha vs Iowa City vs Waterloo vs Davenport. Each has its advantage and disadvantages. I actually recoreded an interview on my YT channel sharing the different between Des Moines and Cedar Rapids/Waterloo investing areas. Feel free to go check that out.
All in all, first step is to build a team, realtor, banker, property manager, and potentially contractor. I've helped dozens of folks buy their first rental in the Des Moines metro from Single family turnkey @Brian L Radcliffe , to househack duplex , to full rehabs , to the ultiple 4plex @Collin Wallace Chesnut househack!!
Depending on your situation, there is no "right" way to do it but a good guiding person to be your boots on the ground is key to understanding the market & making sure you are not buying the worst deal in Iowa that looks like the best deal in Hawaii if that makes sense....
Good luck and feel free to reach out if you want to chat for 15-30 mins!
Real Estate Agent · Central Iowa · Member since 2021 · 26 posts · 13 votes
4y
@Mandy Adams I currently invest in Central Iowa, Ames IA specifically. Central Iowa has much lower entry points to start investing with properties still coming close to the 1% rule. I actually just helped a client of mine also from Hawaii buy his first duplex here :) If you ever want to chat about the market out here feel free to reach out!
Bay area, CA · Member since 2021 · 383 posts · 306 votes
4y
Hello Mandy,
Out-of-state investment can be scary, and also hard to manage. I do with reliable people I trust. Message me and I will share my story and see if that's the path you want to explore.
Realtor · Des Moines · Member since 2018 · 304 posts · 253 votes
4y
@Mandy Adams Love that you are exploring the BP forums to gather info about an OOS area you are looking to invest in. I've psoted about this many times but to keep it short, Iowa in general is small, but investing in different areas is completely different. Des Moines vs Ames vs Coucil Bluffs/Omaha vs Iowa City vs Waterloo vs Davenport. Each has its advantage and disadvantages. I actually recoreded an interview on my YT channel sharing the different between Des Moines and Cedar Rapids/Waterloo investing areas. Feel free to go check that out.
All in all, first step is to build a team, realtor, banker, property manager, and potentially contractor. I've helped dozens of folks buy their first rental in the Des Moines metro from Single family turnkey @Brian L Radcliffe , to househack duplex , to full rehabs , to the ultiple 4plex @Collin Wallace Chesnut househack!!
Depending on your situation, there is no "right" way to do it but a good guiding person to be your boots on the ground is key to understanding the market & making sure you are not buying the worst deal in Iowa that looks like the best deal in Hawaii if that makes sense....
Good luck and feel free to reach out if you want to chat for 15-30 mins!
Hi everyone, I'm getting started on my REI journey. Do any of you invest in IOWA? What cities would be good to invest in? The strategy I want to do is buy and hold. This will be my first investment and out of state as well. I live in Hawaii. Any recommendation is greatly appreciated! Thank you
Best of luck! Youre doing the right thing posting here. I bet there are some super qualified investor Agents that can help you out!
Real Estate Broker · Iowa City, IA · Member since 2021 · 46 posts · 18 votes
4y
Hi Mandy!
It's so great that you are looking to invest in Iowa! I am a local investor and RE agent in the Iowa City/Cedar Rapids area. I have a local portfolio with my husband and I also invest out-of-state.
Hi everyone, I'm getting started on my REI journey. Do any of you invest in IOWA? What cities would be good to invest in? The strategy I want to do is buy and hold. This will be my first investment and out of state as well. I live in Hawaii. Any recommendation is greatly appreciated! Thank you
I don't operate in Iowa so I have nothing to offer you in regards to intel on that market. However, I've sold $200 million+ to out of town investors across the USA. Through my time doing this I've seen countless out of state investors make similar mistakes when buying in a new market. So, I put together a quick little punch list of tips for out of town investors. Not market specific, just some quick little things to keep in mind in whichever market you are investing in, Iowa included. Good luck out there.
Don't buy in the roughest neighborhood in the urban core. Pick a solid B-Class suburban area. Perhaps a nice 1950's built bungalow.
Always hire a 3rd party property inspector to give you an unbiased feel for the home. The reports are 40-90 pages long and go through the entire house in great detail.
Get an appraisal. If your using financing the bank requires this. This is good. The bank isn't going to let you blow their money. They have more skin in the game then you do.
Make sure you get clear title. If using a lender this is a non issue. They will make you do this. It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.
Make sure your property manager is a licensed real estate brokerage.
Google Clayton Morris and/or Morris Invest for a cautionary tale of what not to do when buying turnkey real estate
Understand you can not eliminate all risk, only mitigate it. If you are risk averse, real estate, (especially out of state) is not for you.
Rental Property Investor · Centreville, VA · Member since 2019 · 1k+ posts · 799 votes
4y
Out of state Investing is usually the preferred way of investing when your local market is very expensive. I also live in an expensive market so I decided to invest with turnkey companies out of state. I invest mainly in Cleveland so let me know if you want to connect.
Out of state Investing is usually the preferred way of investing when your local market is very expensive. I also live in an expensive market so I decided to invest with turnkey companies out of state. I invest mainly in Cleveland so let me know if you want to connect.
Hi AJ! Thanks for the advice. My local market in Hawaii is also expensive which is why I would like to invest out of state right now. Was your first deal out of state? I would love to connect! I never thought about investing with a turnkey company.