All Forum Posts by: Rick Mapes

@Darson Grantham - I did, Brad helped me out. It's not technically a HEL,  it's a personal bank loan that uses the investment property as backing.  What the end result is a bit higher % rate, but lower cost to originate the loan.   Seemed pretty fair to me, for how long we'd plan on having it - which isn't too long.   It's on an arm that is locked in for 5 years, adjusts every 5 after that.  

Not sure if he does loans for out of state or not.

Welcome Chris!  Glad you found BP.com, lots of good information here.  Also check out the podcasts if you haven't already.  Cheers!

The broker I work with requires 20% down. Keep in mind you'll be behind PMI which will impact your ROI as well, just not as immediately as the down payment. I know as a finance person you understand that, but maybe for others reading that'd be a useful thing to consider. Good luck!

What Harjeet mentions is accurate, and I've found many banks in central Iowa won't lend for less than 20% down as bank policy.  I can refer you to a great mortgage broker if you are looking to get pre-approved.  Feel free to reach out.

I've used Scott Edwards from Imperial Home Inspections and have been very happy with his work.  He's extremely thorough, and gives very practical advise.  

https://imperialia.com/

Sort of implied by previous responses, but I'd suggest driving over, and looking around the neighborhood.  I don't buy in that area for alot of the reasons already mentioned.  Potential for upside as neighborhoods get renovated out from downtown, but feels like a gamble.

I think Samuel makes a good suggestion, and it sounds like that's a real possibility, so I won't belabor it, but I will second the thought.  I invest in Des Moines, and even the Des Moines market for rental properties is getting pretty hot.  Single family houses that would make good rentals only sit on the market for a day or two so you have to get your financing lined up, and get a realtor that is motivated to offer quickly.  Just my $.02.  Best of luck, Iowa is a great place to invest!

Hey @Nicholas Denning -  been following this thread.  Just as a heads up from an active Des Moines investor, $100k for 3BR/2BA is going to need quite a bit of work to get rent ready.  You can get some near turn-keys in the 2BR/1BA and $105-125k range, but the market is pretty hot at the moment, by Des Moines standards.  Most respectable 3BR/2BA are going to be in the $140k+ range.  That said the rental market is strong, so I think you can spend a little more, get something nice, and find renters willing to pay a little more.  Central Iowa economy is humming along pretty nicely.

Nah, Des Moines is terrible, you'll want to stay FAR away.  :-)

I kid, my sense is, backed by zero data, that we see slow and steady growth as far as property values.  We don't get the upside nor downside of the big swings that the big markets have to deal with.  

And if you've been away for more than 10 years, it might be worth a visit prior to any major financial moves as the city itself has changed quite a bit. Neighborhoods that were nice when I was younger aren't anymore (Sherman Hill, parts of Roosevelt area), and areas that were total dumps in the 80's are completely revamped (East Village, west Ingersoll).  

Good luck in your search, and welcome to BP!

I'll echo the others, I have wording in my lease that says "2 month's rent or the remainder of the lease" - so the deposit wouldn't cover that, but if the tenant goes rogue, I'd definitely have to hold that to cover cost of vacancy.