OOS Investor focusing on Iowa Multi-family?

Question

I'd be an OOS investor looking into investing in Iowa. It seems like a good, landlord friendly state with reasonable taxes. I also like the Series LLC opportunity. I'm hoping to connect with others who are trying and already investing in the market to learn and help each other out. I'm specifically interested in Multi-family (4-8 unit). I've already done some research on Davenport but open to the other major metros in Iowa as well such as Cedar Rapids and Des Moines among others. My goal is at least a 12% CoC and a 9 Cap Rate. This seems achievable in Iowa but let me know if that's unrealistic.

The one issue I've had so far is with financing. All seem to want 25% down, is that the standard other investors are seeing?

Looking forward to joining the Iowa investing community!

The one issue I've had so far is with financing. All seem to want 25% down, is that the standard other investors are seeing?

Looking forward to joining the Iowa investing community!

Andrew Kougl · Answer

Hey @Doug Karkow, really appreciate your response! Hearing 12% CoC is achievable is great. And I think Iowa seems to have different markets, Des Moines, Cedar Rapids, Davenport, Iowa City, all viable options in case one market doesn't have the inventory. At this point just connecting (connection requested) and establishing relationships. I'm going to look more into Cedar Rapids and any connections that could help me establish a presence and build a team would be great. I have capital but I'd be open to hearing how your partnership model works. Deals, property managers, lenders and agents would all be very valuable. I'll send you a message as well.

Thanks for the help!

Andrew Kougl · Answer

Hi @Jose Linares, happy to see a nearby face! There certainly are a lot of San Diego based investors on BP.

You're spot on and sadly that's been my experience exactly. I had started down the path with IHMVCU and then when the supervisor got wind I was OOS, they didn't want any part of it anymore. Big bummer.

I am coming to terms with a 25% minimum down payment if it's required, I just really want to to do a deal. I have the necessary funds so I won't be needing a private money lender, just prefer the 20% down to keep more of my capital for the next deal.

I'll connect with you. Curious are you investing in Iowa personally?

Andrew Kougl · Answer

@Mark Reiland

Thanks Mark, I'll send you a request and message. Looking forward to connecting and seeing how we can benefit each other.

Andrew Kougl · Answer

@Chase Keller

Absolutely Chase, I think broadening my focus and expanding market knowledge would be very helpful, thanks. Connection Request sent!

Michael Barnhart · Answer

@Andrew Kougl my wife and I just setup an entire team in Cedar Rapids for Long Distance BRRRRing and we should start buying properties in the next few weeks. I would love to connect and see what your plans are and I wouldn't mind discussing more about Cedar Rapids. Cheers!

Andrew Kougl · Answer

@Jose Linares

Congratulations, you're the 2nd SD investor I've talked to in the last 2 weeks who did BRRRR as their first deal. You guys are courageous. Good luck on finishing strong with that bad boy.

Suzy Sevier · Answer

@Andrew Kougl Hills Bank will only lend to Linn, Johnson, and the counties that touch Linn and Johnson. Hope that helps a bit!

AJ Leman · Answer

Hi @Andrew Kougl,

Have you tried Hills Bank? We do all our lending through them and the relationship is great. Let me know if you are interested and I’ll shoot you a few names.

Good luck,

AJ

Jose Linares · Answer

Hi @Andrew Kougl Iowa is a great market with lots of opportunity. Most lenders are very hesitant when it comes to out-of-state investors. You will typically be looking at 25% down and they often offer only Loan-to-Cost... The lessor of the purchase price + cost or appraisal. If the 25% down is too much, consider a private money lender to get you into that first deal.

Make sure you keep making those calls to lenders to build that rapport as it will take some time to find the right lender.

Feel free to PM me if you have any other questions.

Make sure you keep making those calls to lenders to build that rapport as it will take some time to find the right lender.

Feel free to PM me if you have any other questions.

Mark Reiland · Answer

I am in both Ankeny/Des Moines and Iowa City area. Would be happy to connect.

OOS Investor focusing on Iowa Multi-family?

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