All Forum Posts by: Jared Stroebele

Hi @Earl W.

Thank you for sharing your story.  I am a young soon-to-be investor in Davenport.  I would like  to hear about your current properties, particularly how you found them and why you picked them.  You should come to the Quad Cities Real Estate Investing Group the next meeting March 30, 6:30 pm at Davenport Public Library - Fairmount St. Branch.  You can meet some like minded people.

There are two types of 203k loans the Streamline that we appear to be talking about and the Full or Standard.  Based on my research with the streamline your repairs have to be under 30k.  The rules say 35k but they require a percent to be reserved in case you go over budget so that is where the other 5k goes. 

If your repairs will be over 30k or require structural changes (removing walls or foundation repairs) you might be required to go with the Full which has some additional hurdles in such as requiring the use of and FHA 203k consultant, and a General Contractor, as well as Architectural drawings.

Hi Jeremy,

Two more resources for determining fair market rent are Zillow.com and Rentometer.com. 

In my area, Zillow home value estimates are not super accurate but the rental estimates are pretty good.

Rentometer is nice you just put in the address and number of bedrooms and you get a range of rent for the area.  

Rules of thumb are just that general rules to get a quick feeling on the property.  In particular the 2% rule does not hold true everywhere some cities are happy with a 1% rule.  

What are other investment properties going for in the area?  is this a good deal compared to the other inventory on in your market?

There is no substitute for due diligence.  If you accounted conservatively for all your expenses and you are comfortable in that neighborhood it may be worth it.

@Deanna McCormick I replied in the above post but it looks like I did not mention you correctly. Sorry. 

@Deanna McCormick Thanks for the advice I plan to do sewer line inspection on any property I purchase. I would rather know about a problem and be able to plan accordingly than stick my head in the sand. 

The city of Davenport also has a Sewer Lateral Repair Grant Program to assist homeowners with costly sewer lateral repairs. The program funds eligible repairs up to $10,000. Payment of a $500 deductible is required to participate in the program.  I will have to make sure that there are not eligibility restrictions but it sounds like a good deal. City of Davenport Iowa Sewer Lateral Repair Grant

Being aware of city programs other potential buyers are not could very well give me a edge, and with my inexperience and comparatively low cash levels I need every advantage. 

In the midwest there are tornadoes common.  Does anyone think of a basement as a safety feature? 

@Sean Walton good thought.  I would guess if there is not much cracking going on the perimeter is below the frost line.  It might be an interesting line of questioning for an inspector.  If the deepened perimeter of the slab is NOT below the frost line what problems would that cause? 

@Rose Davis It is good to see other beginners starting out in the Quad Cities and succeeding.  I would love to meet over coffee and hear about your deals.

@Account Closed There is a Quad Cities Real Estate Investing Group run by Gary Tomlinson.  I would enjoy seeing the group growing. 

Quad Cities Real Estate Investing Group Meetup