馃槏 Why I LOVE Investing in the Midwest

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馃槏 Why I LOVE Investing in the Midwest

AJ Smith
Rental Property Investor 路 Bettendorf, IA 路 Member since 2018 路 153 posts 路 75 votes

Hot Take 馃敟: The Midwest is the BEST place to invest!

馃寔 Sure, you'll get loads of appreciation on the coasts.

馃槵 Yes, Texas and the Southern markets have a ton of growth.

馃専 But if you dig down to the root of why most folks are here on BiggerPockets, the primary reason for 95% of us AT FIRST is because we want to achieve financial freedom.

鉀擄笍 No more "requesting time off".

No more 40hr+ work weeks.

No more having someone else dictate your schedule, dress code, or location.

FREEDOM.

馃ぉ Investing in inexpensive, cashflowing 4plexes in the Midwest helped me to achieve financial freedom just TWO YEARS out of college.  

馃彉 Househacking, partnerships, and flips have helped me to scale my portfolio to the point where I am confident taking the leap into real estate full time.

馃挭馃徑 FREEDOM is my why. 

鉁婏笍 Freedom to spend time with those I love. Freedom to make an impact on my community. Freedom to build a business as far and as fast as I can educate myself, network, and take action. 

馃寗 And because of the freedom it has afforded me -- the Midwest market will always have my heart and soul. 

(Y'all can keep Illinois though 鉁岋笍馃ぃ)

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Garrett Gatton
Real Estate Agent 路 Lima, OH 路 Member since 2019 路 34 posts 路 18 votes
3y

AJ -- Admittedly the Midwest is where I feel most comfortable and investing in high growth markets in the southeast intimidates me. We are in Lima, Ohio which is a Tier 3 market (depending on what you call Tier 1 haha). Cash flow is the name of the game here. Great job making it happen!

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  • Austen Mueller
    Real Estate Agent 路 PA 路 Member since 2021 路 240 posts 路 131 votes
    3y

    What was the purchase price on this four unit in the picture?! Looks like a solid buy 

    2Reply
  • Wyatt Seidel
    Investor 路 Kansas City 路 Member since 2023 路 70 posts 路 62 votes
    3y

    AJ,

    I love it man! Congrats on the financial freedom. You're absolutely killing it and correct about our common goal; financial freedom through real estate. 

    I left the nursing profession for real estate full time. It's been an absolute blessing. No more long days, no more clocking in, and best of all, no more taking orders!  

    Cheers and much respect from Kansas City!

    1Reply
  • AJ Smith
    OP
    Rental Property Investor 路 Bettendorf, IA 路 Member since 2018 路 153 posts 路 75 votes
    3y
    Quote from @Austen Mueller:

    What was the purchase price on this four unit in the picture?! Looks like a solid buy 


    I bought that deal for 134,900 with a couple partners! Current rent is 2475 with ability to bump to 2600.
    1Reply
  • AJ Smith
    OP
    Rental Property Investor 路 Bettendorf, IA 路 Member since 2018 路 153 posts 路 75 votes
    3y
    Quote from @Wyatt Seidel:

    AJ,

    I love it man! Congrats on the financial freedom. You're absolutely killing it and correct about our common goal; financial freedom through real estate. 

    I left the nursing profession for real estate full time. It's been an absolute blessing. No more long days, no more clocking in, and best of all, no more taking orders!  

    Cheers and much respect from Kansas City!


    Congrats on going full time Wyatt! Would love to connect with you as a fellow Midwest investor!

    1Reply
  • Garrett Gatton
    Real Estate Agent 路 Lima, OH 路 Member since 2019 路 34 posts 路 18 votes
    3y

    AJ -- Admittedly the Midwest is where I feel most comfortable and investing in high growth markets in the southeast intimidates me. We are in Lima, Ohio which is a Tier 3 market (depending on what you call Tier 1 haha). Cash flow is the name of the game here. Great job making it happen!

    3Reply
  • AJ Smith
    OP
    Rental Property Investor 路 Bettendorf, IA 路 Member since 2018 路 153 posts 路 75 votes
    3y
    Quote from @Garrett Gatton:

    AJ -- Admittedly the Midwest is where I feel most comfortable and investing in high growth markets in the southeast intimidates me. We are in Lima, Ohio which is a Tier 3 market (depending on what you call Tier 1 haha). Cash flow is the name of the game here. Great job making it happen!


    Garrett - let's talk Ohio and Tier 3 markets! I invest in Tier 2 markets in Iowa and would love to get your take on Property Management and Contractor work in smaller towns.

    2Reply
  • Andrew SyriosPro Member
    Moderator
    Residential Real Estate Investor 路 Kansas City, MO 路 Member since 2014 路 10k+ posts 路 5k+ votes
    3y

    Appreciation has been quite good out here in the Midwest too. Yes it started at a lower baseline and sure, it hasn't gone up as much as many coastal markets. But it has still been quite good over the past decade to say the least.

    Podcast Guest on Show #121
    1Reply
  • AJ Smith
    OP
    Rental Property Investor 路 Bettendorf, IA 路 Member since 2018 路 153 posts 路 75 votes
    3y
    Quote from @Andrew Syrios:

    Appreciation has been quite good out here in the Midwest too. Yes it started at a lower baseline and sure, it hasn't gone up as much as many coastal markets. But it has still been quite good over the past decade to say the least.


    And if you take into account loan paydown you can build some massive wealth in the Midwest over the years.

    0Reply
  • James Hamling
    Real Estate Broker 路 Minneapolis, MN 路 Member since 2011 路 5k+ posts 路 6k+ votes
    3y
    Quote from @AJ Smith:

    Hot Take 馃敟: The Midwest is the BEST place to invest!

    馃寔 Sure, you'll get loads of appreciation on the coasts.

    馃槵 Yes, Texas and the Southern markets have a ton of growth.

    馃専 But if you dig down to the root of why most folks are here on BiggerPockets, the primary reason for 95% of us AT FIRST is because we want to achieve financial freedom.

    鉀擄笍 No more "requesting time off".

    No more 40hr+ work weeks.

    No more having someone else dictate your schedule, dress code, or location.

    FREEDOM.

    馃ぉ Investing in inexpensive, cashflowing 4plexes in the Midwest helped me to achieve financial freedom just TWO YEARS out of college.  

    馃彉 Househacking, partnerships, and flips have helped me to scale my portfolio to the point where I am confident taking the leap into real estate full time.

    馃挭馃徑 FREEDOM is my why. 

    鉁婏笍 Freedom to spend time with those I love. Freedom to make an impact on my community. Freedom to build a business as far and as fast as I can educate myself, network, and take action. 

    馃寗 And because of the freedom it has afforded me -- the Midwest market will always have my heart and soul. 

    (Y'all can keep Illinois though 鉁岋笍馃ぃ)

    1Reply
  • William Arrington
    Gainesville, VA 路 Member since 2021 路 82 posts 路 72 votes
    3y

    Just curious about repairs/upgrades needed on the property.  4 plex's are cool because you can fix it up 1 unit at a time with vacancies and still get rents.  Would love to have a more detailed journey story.  

    1Reply
  • AJ Smith
    OP
    Rental Property Investor 路 Bettendorf, IA 路 Member since 2018 路 153 posts 路 75 votes
    3y
    Quote from @James Hamling:
    Quote from @AJ Smith:

    Hot Take 馃敟: The Midwest is the BEST place to invest!

    馃寔 Sure, you'll get loads of appreciation on the coasts.

    馃槵 Yes, Texas and the Southern markets have a ton of growth.

    馃専 But if you dig down to the root of why most folks are here on BiggerPockets, the primary reason for 95% of us AT FIRST is because we want to achieve financial freedom.

    鉀擄笍 No more "requesting time off".

    No more 40hr+ work weeks.

    No more having someone else dictate your schedule, dress code, or location.

    FREEDOM.

    馃ぉ Investing in inexpensive, cashflowing 4plexes in the Midwest helped me to achieve financial freedom just TWO YEARS out of college.  

    馃彉 Househacking, partnerships, and flips have helped me to scale my portfolio to the point where I am confident taking the leap into real estate full time.

    馃挭馃徑 FREEDOM is my why. 

    鉁婏笍 Freedom to spend time with those I love. Freedom to make an impact on my community. Freedom to build a business as far and as fast as I can educate myself, network, and take action. 

    馃寗 And because of the freedom it has afforded me -- the Midwest market will always have my heart and soul. 

    (Y'all can keep Illinois though 鉁岋笍馃ぃ)

    This response says it all 馃ぃ
    0Reply
  • AJ Smith
    OP
    Rental Property Investor 路 Bettendorf, IA 路 Member since 2018 路 153 posts 路 75 votes
    3y
    Quote from @William Arrington:

    Just curious about repairs/upgrades needed on the property.  4 plex's are cool because you can fix it up 1 unit at a time with vacancies and still get rents.  Would love to have a more detailed journey story.  


     William, let's connect on a call!

    You can also find my social on my profile, and you can search my name on Spotify for my interview with the W2 Amigos

    0Reply
  • Megan Bridgette
    Member since 2023 路 6 posts 路 0 votes
    3y

    Great job!  Are your rentals in Bettendorff, IA?  What year did you purchase your property?

    0Reply
  • AJ Smith
    OP
    Rental Property Investor 路 Bettendorf, IA 路 Member since 2018 路 153 posts 路 75 votes
    3y
    Quote from @Megan Bridgette:

    Great job!  Are your rentals in Bettendorff, IA?  What year did you purchase your property?

    Thanks Megan! I have a few rentals in Davenport and one in Bettendorf. Would love to connect!
    0Reply
  • Bud Gaffney
    Rental Property Investor 路 Boston, MA 路 Member since 2019 路 2k+ posts 路 1k+ votes
    3y

    @AJ Smith congrats man!!!

    1Reply
  • Alex Gunnerson
    Real Estate Agent 路 Kansas City, MO 路 Member since 2020 路 95 posts 路 119 votes
    3y

    @AJ Smith couldn't have said it better myself. I really do think you are speaking to the WHY for 95% of people who are on Bigger Pockets, to achieve financial freedom. Cheers to financial freedom from a fellow Iowan (Carroll), nicely done sir!

    1Reply
  • AJ Smith
    OP
    Rental Property Investor 路 Bettendorf, IA 路 Member since 2018 路 153 posts 路 75 votes
    3y
    Quote from @Alex Gunnerson:

    @AJ Smith couldn't have said it better myself. I really do think you are speaking to the WHY for 95% of people who are on Bigger Pockets, to achieve financial freedom. Cheers to financial freedom from a fellow Iowan (Carroll), nicely done sir!


     Cheers Alex! Would love to connect with you as a fellow Iowan to hear your story!

    0Reply
  • Justin SheleyBusiness Member
    Investor 路 Rockford, IL 路 Member since 2016 路 94 posts 路 220 votes
    3y

    As someone who owns a handful of homes in Rockford IL, I鈥檇 say don鈥檛 sleep on all of Illinois. You just have to take Chicago out of the equation 馃槀

    1Reply
  • Garrett Gatton
    Real Estate Agent 路 Lima, OH 路 Member since 2019 路 34 posts 路 18 votes
    3y
    Quote from @AJ Smith:
    Quote from @Garrett Gatton:

    AJ -- Admittedly the Midwest is where I feel most comfortable and investing in high growth markets in the southeast intimidates me. We are in Lima, Ohio which is a Tier 3 market (depending on what you call Tier 1 haha). Cash flow is the name of the game here. Great job making it happen!


    Garrett - let's talk Ohio and Tier 3 markets! I invest in Tier 2 markets in Iowa and would love to get your take on Property Management and Contractor work in smaller towns.


     AJ - our area is around 100,000 in the Limaland area which would be city limits and the surrounding townships/school districts. We are a heavy manufacturing area along with two medical systems and 3 small community colleges. Historically we don't hit the highs and lows the same as other markets that are bigger than us. Property management is tough in small towns because there are a lot of solo-managers who do it on the side along with selling real estate as an agent or people self-manage. There is really only one large property management company (managing over 300 units) in our area and it runs out of our brokerage. Depending on what grade of properties you invest in management will vary accordingly. We don't touch D class properties because of the risk vs. reward associated with them. 

    0Reply
  • Bob S.
    Real Estate Consultant 路 Cleveland 路 Member since 2020 路 6k+ posts 路 3k+ votes
    3y
    Quote from @AJ Smith:

    Hot Take 馃敟: The Midwest is the BEST place to invest!

    馃寔 Sure, you'll get loads of appreciation on the coasts.

    馃槵 Yes, Texas and the Southern markets have a ton of growth.

    馃専 But if you dig down to the root of why most folks are here on BiggerPockets, the primary reason for 95% of us AT FIRST is because we want to achieve financial freedom.

    鉀擄笍 No more "requesting time off".

    No more 40hr+ work weeks.

    No more having someone else dictate your schedule, dress code, or location.

    FREEDOM.

    馃ぉ Investing in inexpensive, cashflowing 4plexes in the Midwest helped me to achieve financial freedom just TWO YEARS out of college.  

    馃彉 Househacking, partnerships, and flips have helped me to scale my portfolio to the point where I am confident taking the leap into real estate full time.

    馃挭馃徑 FREEDOM is my why. 

    鉁婏笍 Freedom to spend time with those I love. Freedom to make an impact on my community. Freedom to build a business as far and as fast as I can educate myself, network, and take action. 

    馃寗 And because of the freedom it has afforded me -- the Midwest market will always have my heart and soul. 

    (Y'all can keep Illinois though 鉁岋笍馃ぃ)


     Numbers ????

    1Reply
  • John Warren
    Real Estate Broker 路 3412 S. Harlem Avenue Riverside, IL 60546 路 Member since 2015 路 6k+ posts 路 5k+ votes
    3y

    @AJ Smith I greatly appreciate you letting me keep Illinois lol. 

    0Reply
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