All Forum Posts by: Alex Cotton

Welcome to BP @Joseph Taylor! I've especially enjoyed the podcast and recommend that you keep listening. You'll even find one of Cedar Rapids own, @Glenn McCrorey, on episode 110. 

There are still opportunities for both buy and hold and flips in Cedar Rapids. For buy and hold areas, you have to make a decision between cash flow and the quality of the area and tenants. We have areas with on market single family deals that meet the 2% rule but have slightly higher crime rates and may require a little more work. There are a lot of investors in Cedar Rapids that are pursuing this route and doing well. Most of the areas I look at are closer to the 1% rule for single family. Feel free to message me if you want to talk about specific areas on the east side (@Austin Davis probably knows more about the west side), or need recommendations on agents, lenders, etc. 

Best of luck!

Welcome to BP @Paul Volk! I’m originally from West Michigan but currently living and investing in Iowa. Be sure to check out the podcast, there are some great interviews with tips on finding deals. Good luck! 

@J Anders, welcome to BP! I absolutely recommend J Scott’s book on estimating rehab costs. That‘s what I used to put together a SOW for my first flip.

What part of Iowa are you in? There’s a decent number of us here on the forums. Good luck on the upcoming flips.

One other point that was brought up during the landlord training – service and emotional support animals are not considered pets. Therefore, you cannot collect an additional deposit that you would not collect from tenants without these animals. Legal cases around emotional support animals are happening right now, but it looks like they will be protected just like service animals.

For those in the Cedar Rapids area, the Iowa Civil Rights Commission will be holding a free Assistance Animals training at the CR Public Library April 28th from 1-3pm.

@Austin Davis

Disclaimer – I am not a legal professional and recommend talking to an attorney familiar with landlord and tenant laws in your city and state.

@Austin Davis - Here’s how an attorney explained pet fees as a “prohibited provision” at a Cedar Rapids landlord training earlier this year.

NOT okay:

• Non-refundable pet deposit
• Monthly pet fees (increased rent)

OK:

• Refundable pet deposits (up to a total deposit of 2x rent)
• Withholding security deposit or charging for expenses incurred due to the pets (i.e. vacuuming animal hair out of ductwork)

The gist he conveyed was that fees (not just with pets) could get you in trouble, but charging for incurred expenses is ok.

@Mindy Jensen This is a hot topic in Iowa City and throughout the state right now. I strongly recommend that your friend does not charge the tenant for the costs of carpet cleaning, unless it is very clear that the damage to the carpet is beyond normal wear and tear (i.e. significant stains, burns).

Iowa courts have consistently ruled under Iowa Code section 562A.12(3) that landlords are not legally allowed to require carpet cleaning for "normal wear and tear" on carpets and cannot withhold any part of the security deposit for professional carpet cleaning unless there is damage to the carpets that is above and beyond normal wear.

The Iowa Supreme Court also recently classified this practice as a prohibited provision under code 562A.11 and has required the named landlord company to pay back their current and former tenants.

Search “Caruso versus Apts Downtown” to see the Iowa Supreme Court Ruling from May 2016 and related press.

I also think it is worth mentioning that these prohibited provisions apply not just to carpet cleaning but any flat fees in the form of additional rent or withholding security deposits. You may only charge for costs incurred to you, above and beyond normal wear and tear. This includes additional rent for pets.

Welcome to BP @Jesse Carlson! I've completed a couple successful rehabs in the Cedar Rapids market. My advice is to find a great deal and let the rest "fall" into place. Start by looking at a bunch of properties and running the numbers to get a sense of what is and is not a good deal. I used @J Scott's book on estimating rehab costs to build a scope of work and estimate costs on my first flip. Good luck!

@Thomas Fosnaugh - I don't have a good drywall specific contractor, but I have a a good plumber and electrician that will do smaller jobs. Shoot me a message if you're still looking.

@Brad T., welcome to BP! Great to see some more investors from the area on here. Make sure the check out the podcasts. Good luck!