New development surplus in Cedar Rapids

[Nicholas Wallraff]

Hello, I am curious to hear from  fellow Iowa investors about the effects of newly constructed rental properties on existing properties and rents.  My first property is a Single Family house very near to downtown Cedar Rapids.  Within a mile radius of my house there seems to be hundreds of apartments that have either recently opened or are currently under construction, and I'm sure this is also the case with other Iowa Urban cities as well.  So my question to you is are you concerned about these newly constructed apartments and their possible effects on values and rents for other rental properties in the area?  Is this something to pay close attention to or simply normal progression of the times?

[Andy Petzold]

I think we've have experienced a significant softening of the market over the past year as a direct result of all the new builds. I'm looking forward to 2018 having fewer new units coming online so the market can begin to rebound.