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

Question

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 · Answer

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.

Anthony Wick · Answer

@Bill Plymouth . Of course, those high property taxes are passed off in the form of higher rents as well. But yes, it is very affordable here as compared to coastal cities. Food, gas, housing (as far as price is concerned). Those high property taxes hurt, but not as much as crazy up front real estate prices on the coasts hurt. I lived in Sacramento for 8 years. Been in Iowa for 10 years now. Took a pay cut to move back to the Midwest, and still live a way better life than in Cali (snow and cold notwithstanding).

When my potential tenants say; "the rent is kind of high", I say; "you're right, it is. But so is the cost of buying housing for me, and you're about to rent in the best neighborhood and school district in the area, so demand is high".

Bill Plymouth · Answer

@Caleb Heimsoth I have!  I'm weighing all of my options.  I want to get the best returns.  I understand that investing out of state is 10x more difficult, but I'm thinking the returns outweigh the risk.

@Chase Keller Thank you very much!

Bill Plymouth · Answer

@Aubrey H. small-large MF units are probably what I’d be looking for.  I’m still about a year out from purchasing

Bill Plymouth · Answer

@Caleb Heimsoth I just DM-ed you.  I'm curious about your experience.

Chase Keller · Answer

Hey @Bill Plymouth,

@Charles Willie Harris and @Darson Grantham probably have a better grasp on the Marshalltown market, I've only had 1 property there.  DSM is my bread and butter, so I can definitely help more here.  Very stable, we didn't have much of a downturn the last go-round and we have seen a very steady rise in both asset values and rents.  You're very smart for starting to research markets well before you're going to buy.  That takes the emotions out and puts you in a better situation to make a good business decision.  Let me know where I can help; finding property, management companies, contractors...

Caleb Heimsoth · Answer

@Bill Plymouth have you ever been to Des Moines or Iowa at all?

I understand Phillie is likely an overpriced market for cash flow but why not invest in another area of PA that’s only a couple hours away instead of across the country?

Ryan Rush · Answer

I have had good luck in Marshalltown. You might be interested in what I just posted there in the Marketplace. I'm getting too stretched out and need to sell off some of my inventory in that area for the fact that I need to focus on a new business I started.

Nick SyWassink · Answer

2018 Marshalltown Housing assessment

For those of you that enjoy reading development plans and housing studies.

Lucas Gillmore · Answer

@Bill Plymouth Des Moines market is like most markets that size with a slight difference. Des Moines has a heavy presence of insurance companies which stabilizes its job market. Also gives plenary of room for  B/C rentals. But like most cities it has good parts and not so great parts. I would look at any of the suburbs that touch the city.

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

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