All Forum Posts by: Andy Algreen

I would agree with everyone in this posted that said something to the effect of stay away from HOA's if you're looking at renting out short-term or medium term as policies can change.

I co-own a short-term property management business in Des Moines called 'Des Moines Short-Term Rentals'. If you ever have any questions about STR in the central DSM area, we are always happy to help answer any questions!

Hey Christopher, here are a couple options that you could explore. Firstly, instead of going for a cash-out refinance, you could consider taking out a Home Equity Line of Credit (HELOC) on your homes. This way, you can tap into the equity without giving up your favorable interest rates. Another option to explore would be selling your properties and doing a 1031 exchange. This would allow you to upgrade to a small or large multi-family property, depending on the amount of cash you'd like to pull out and avoid paying the capital gains taxes on the sale. These options could potentially provide you with more flexibility and opportunities for growth.

Hi May! Yep, they are still occurring!

1: Every Friday morning @ Smoky Row on Cottage Grove at 7:00am

2: 2nd Tuesday of every month at the Iowa Tap Room Downtown at 5:30pm

There's a Des Moines Investor Facebook group you can join to get reminders about when the events are occurring as well.

The layout of the property is set-up where the parking is in the back of the property. It makes more sense for guests to enter through the back door which is the sliding door. From my perspective, that's what makes it inconvenient as they would have to walk around the property to enter.

My initial thought was a smart lock for a sliding door would be the best route to go but researching more, it doesn't look like that will be an option as none of them integrate with Airbnb from what I have found.

I have a short-term rental that is set-up for guests to enter more conveniently through a back sliding glass door. I am having trouble finding a smart lock that integrates with Airbnb that is also for a sliding glass door. Has anyone else ran into this situation and/or do you recommend a smart lock that would work for a sliding door AND integrate with Airbnb? Thanks!

We charge 25% in Des Moines, IA. 100% agree with Andrew Steffens as well. Ask a lot of questions about how the PM company is charging their fee to you as the owner as there are many different ways it can be calculated.

Investment Info:

Single-family residence fix & flip investment.

My wife and I bought this single-family home with intentions to do a live-in-flip. Our plan is to sell if after years to avoid having to pay for the capital gains taxes.

What made you interested in investing in this type of deal?

I was more interested in living in a duplex to 4-unit, but the wife didn't want to have that close of neighbors. So, we were able to compromise on doing a live-in-flip.

How did you find this deal and how did you negotiate it?

We found this deal on the MLS and used a local realtor. Interestingly enough, the home was being sold in as-is condition. We still were able to negotiate with the sellers. So, even though a home is being marketed as is, doesn't mean you still can't negotiate.

How did you finance this deal?

Conventional 30 year loan with a 5% down payment.

How did you add value to the deal?

We renovated the home.

What was the outcome?

We have yet to sell the home, but we are expecting a good return on investment.

Hi Chelsea! I'm a local realtor and investor here in Des Moines. Here are a few property management companies in the Des Moines area. Highly recommend you vet them as needed as I haven't worked directly with any of them. I own a duplex my self and self manage it. 

-KLC Property Management

-Renters Warehouse

-Property Management Inc (PMI), Central Iowa

I also am a co-owner of a short-term property management company called Des Moines Short Term Rentals. If you have any interest in discussing what that might look like, I'd be happy to chat with you about it!

As far as contractors go, I would join the 'DSM Real Estate Investing Meetup' facebook group to find what you might be looking for on that end of things. Hope that help!

How is occupancy rate actually defined and why is it important? The Airbnb occupancy rate is defined as "the ratio of the number of days in a month or a year for which a short term rental listing is booked by guests divided by the total number of days for which the listing was available for bookings." Knowing and having an understanding of the occupancy rate is important because it is one of the two factors that ultimately determine your rental income (the other factor being your Average Daily Rate). 

The occupancy rate for short-term rentals in Des Moines, Iowa varies throughout the year mainly due to the seasonality of the Iowa weather.  The average occupancy rate for ALL short-term rentals in Des Moines since April of 2018 is 64%. We see the occupancy rate at the end of February and beginning of March start to gradually increase around 75%-80% over the spring and summer months. We see a decline in occupancy rate starting the first couple weeks in August and it will typically sitting around 50%-55% through the winter months. 

Knowing the average occupancy rate gives a good baseline and sets expectations for how your property should perform based on others in the area. In theory the higher the occupancy rate, the better. But if your property is sitting around 85% or higher occupancy rate, you may be losing out on potential revenue because your average daily rate is too low. It's important to note that these figures are averages and can vary depending on the individual property and other factors such as competition, pricing strategy, marketing effectively, setting competitive prices, and providing a high-quality guest experience.