Des Moines, IA market VS Iowa City, IA

[Jacob Hicks]

Hello All!

I am going to be pursuing my first property in the next few months in Iowa. And I would like your input on markets. Specifically, Iowa City and Des Moines. Which do you think is better for a new investor and why?

I am thinking Des Moines as it is a growing city with people that tend to be there for a while. Whereas, Iowa City isn't growing quite as much, is very saturated with rentals, and people go there for college so potential for high turn over.

Thanks!

[Michael Lown]

I think the Iowa City, Coralville, and North Liberty markets offer great rentals with lots of different types of levels of rent. As mentioned above, the University provides a lot of different types of renters like grad students, recent graduates, professors, health professionals and stuff. The price for entry there is generally very high, and good areas move fast.  Consider Tiffin.

Des Moines offers even more options because of its size and spread. There are lots of different types of renters, employers, property types. Des Moines has more people, houses, and price ranges. The rates of appreciation and vacancy (depending on area) probably vary more in Des Moines but the cost of entry is lower and ROI probably higher (agreed with Matt and Mark).