What is the Market like in Marshalltown and Des Moines Iowa?

[Bill Plymouth]

Hey BP!

I'm curious to know what the market for rentals is like in Marshalltown and Des Moines Iowa.  What are prices like? Is there any demand for rentals in these areas?  I've done a brief Zillow search, but I'm looking for some more hands-on and in depth knowledge.  

[Darson Grantham]

Hi @Bill Plymouth, I currently live and invest in DSM but travel to Marshalltown frequently to visit family. I also have two brother in laws who invest in mtown.

Mtown is an interesting community. They have a very high low income population which is where most of the rentals are giving it a C to possibly D type neighborhoods (north side of town). The south side of town is more b class and finding a rental there would take some work but can be done and would get rented out right away. Roughly two yrs ago a tornado hit the middle of town and a lot of the lower income housing. some still sit vacant today. There are 4-5 rehab companies in town with signs plastered everywhere that are fixing up anything they can.

I agree with Chase, Des Moines is a growing market with fairly high taxes. 1% deals are fairly easy to find but the numbers don’t seem to work and I’ve found a 1.5% deal is almost required to cashflow. That being said up until the last month, properties have not sat on the marker very long so someone is out there buying them!

Shoot me a message, would love to have a more in depth convo.