All Forum Posts by: Christopher Derr

That's awesome, about where I hope to be. Similar path as you but USMC.   Went from the 40k a yr to 130k a yr salary and high savings rate also...  have 3 kids though, little drains on my account ;) lol...  I am more in the beginning of the journey I have bought 5 properties in the last 10 months with that "magic" number right now of being at 50.  I want to be where you are soon, the difference is I am in a more rural market in Iowa and I do all the value add myself, but I got property management from day 1 because I to want it to be a business.   I just want the option to retire at any point not that I am going to, I enjoy what I do.   I love it when other people are winning, it gives me hope.  Thanks for sharing!

Welcome from another Iowa guy!... but #gohawks ;) 

The management company will work anywhere in the area you just have to pay mileage and actual time outside of 15 minutes from Mason City for showings and service work.  $35/hr is the rate.  

Clear lake, manly, nora springs, rudd, rockwell i think would all be within that 15 miles and most of those towns outside of clear lake are under 1,000 population but many people just commute to mason city for jobs.  Mason city is really the only sizable city in north central Iowa 

Im in Northern Iowa near Mason city, 35,000 and have rental properties in towns of 400, 3,000, and 35,000.  I am fairly new to multiple rentals 5 in the last year alone but 1 for 7 years.  Never had a vacancy more than a 2 weeks.

I just bought a 3/1 for $36k. Got an as- will be appraisal for 70k.  Got a 25yr commercial loan at 4.4 with a local bank. They gave me a loan for 44k, so I got a check at closing for 8k.   I put 6k of my own money in the 14k rehab and ill get $750/mo.    Cashflow of $237/mo 47% cash on cash and instant 20k equity on the balance sheet.

I use a property managemenrmt company and my last 3 properties were rented in less than a week.  

Another one i bought was a home path from fannie for 40k, got 44k loan so 4k back at closingand used that for a roof.  Ill put probably 10k in it and get $775/mo with $250ish cashflow 30% cash on cash.

Keep in mind i live here and do my own rehabs so some of the equity is sweat and ive only had 1 of then for multiple years so some people will say  capital projects will kill me... guess ill find out.

IG is - ( niabuyandhold l if you want to see any of the places

I see what your saying... I am sitting here thinking in florida its not a old Victorian turned triplex.  In my head i assumed ranch style triplex separate drive etc.   I still wont buy up down duplexes.  

@bobby in those properties is everything metered separately?

I see what your saying... I am sitting here thinking in florida its not a old Victorian turned triplex.  In my head i assumed ranch style triplex separate drive etc.   I still wont buy up down duplexes.  

@bobby in those properties is everything metered separately?

Seems like $200/door and 19% or so COC. Looks good to me if it has all new maintenance. Property management or self manage? Will determine a lot for return on time.


What kind of price would you want to see @Jim Goebel to make it work? I am fairly new in the game but I am interested in seeing how others fair. Des Moines and most metro's are so much different than north central Iowa. $700-800 is a pretty decent SFH rental up here. You're low end rentals with bad renters are usually $400-550 ish and most end up in multi-family. I know in Des Moines $800 puts you probably somewhere you probably don't want to be.

I know St Ansgar well, I am from Rudd and live in Garner now. 

My suggestion is you should wait until after next August.   If you live there for 2 years you dont pay capital gains tax. 

As you know with our -20 temps in the last week, not a lot of people are really looking hard. In the summer itll move better.  

Some people supplement their income very well by doing live in flips and live there for 2 yrs then sell. 

How does the grant work? Is it laddered? Where if you live there a yr you only have to pay 80% back?  I got a veterans grant and it was 5yrs rolling 20% off each year. 

If you used Iowa's program it has a 9yr recapture tax for profits but I dont know the details, I would ask your CPA.  Last thing you want to do is sell the house and not have the opportunity to take advantage of that again and also not make much profit after all the taxes.

Id definitely suggest you talk to a CPA to figure your "actual take home profits" on the sale at 125k.  

What are you going to do when you move? You'll probably need 10-20% down on your next home sinve you won'thave the grant. 

As far as helping her... show her all the grants and help available to her.  The things you used.  Another option is to offer the 3% buyers agent commision then other realtor will be apt to show it.  $3,750 is better than $7,500.

Good luck.

Definitely suggest selling.  That money will go a long way in Iowa/MN.  You could probably buy 5-10 cashflowing properties with that.  

The tax amount is in the second link.