Anyone investing in Des Moines, IA?

[Jan H.]

I wonder if any BP-er out there is investing in Des Moines, IA. I am finding fairly positive economic data but have not run across many on these forums who invest there. Just wonder if I am missing anything? Please understand that I am at the beginning of my research on this area, so anyone has any pointers, that would be appreciated.

There are a number of Universities there too, so I would think that apartments are good to invest in?

[Terrance Doyle]

@Jan H. What's up man! I am actually born and raised in DSM, and currently own and manage just over 200 units throughout the city. It is a great market to invest in for both SFR and multi family, although out of state investors have been pushing prices up on multi family more than SFR. We used to be able to buy 8-10 cap apartment buildings, but over the past 12 months a lot of money from both coasts have started to uncover what you are, and the prices on multi family is closer to 6.5-7.5 currently. Still better than anything you can probably find in California. I think the most value in DSM currently, if you can find the right PM, is in SFR. We are buying SFR for around 50k per property and renting for around 1k. One thing to note is that property taxes are much higher, and the city enforces rental inspections more than any other market I am aware of.

Having owned 100 unit rental portfolio's previously in numerous states, I think that DSM, and suburbs have incredible upside, but the key is management. Labor costs are 20-30% higher than my core market in Denver, which was very surprising to me, which makes finding a PM that has in house maintenance, electrical, plumbing, HVAC very valuable. 

I hope this helps answer some of your initial questions, if you have anything more specific, feel free to inbox me and I will help in anyway I can.

Best,