All Forum Posts by: Matt McCurdy

Hey @Max Matthias good to meet a fellow Cedar Rapidian! I took a brief hiatus from BP as well, so sorry for the tardy reply. I agree with Jonathan's response.  I guess my simple answer is several questions back to you.  What are your short term goals?  Do you plan on renting out your current house or house hacking it?  What makes you question to buying another house?  Do these renovations really need done or is there a more economical approach?  Let me know if you'd like to meet up and I can give you my free advice no strings attached.  Good luck!

Hey @Joe Casey, welcome!  Like most have said, get educated!  As the old saying goes, it's better to "get prepared, aim, and then shoot vs. shoot and then aim."  Here's the BIG difference that I see between new investors and seasoned one's:  action.  I'll admit, I spent the better part of one year in 2012/2013 looking at properties and putting in offers, before one finally hit and I've been off and running since.  I recommend finding someone you trust that can mentor you and help you push through your mental & environmental resistance.  Remember, educate yourself and then take action!  Good luck!

Interesting!  I've never thought to do a cost segregation study on a single family house.  What are your thoughts on the chances of 100% depreciation will be re-instated with Trump back in office?

@Tony Schmucker if it were me, it would totally depned on a ton of differing factors that you may not be measuring (some outside of investment real estate).  For example, what is the cost of living now and projected in the future?  What is the political environment within the community and state?  Landlord friendly?  Growth minded?  What's the health care system look like?  What industries are moving in now?  What is the long term plan for the city and the state?

I'm born and raised in Iowa (actually a suburb of Des Moines), I now live 2 hours away in Cedar Rapids, because I like this market better.  However, I've always thought of the state of Iowa as home first and the investment potential second.  It turns out with inflation and cost of living soaring across the US, my intuition may be leading others, like yourself, to call Iowa home as well.  Good luck in your search and decision, I'm sure it will be a good one!

I've had good success billing actual market rent and then billing utilities separately. Let me know if you want some marketing tips as I've seen good success with it in the Cedar Rapids market.

Thanks to all who messaged me privately and @Chris Mason, I found Auto Owners was pretty competitive.  

Quote from @Ryan Dunn:

Is the midwest looking to you guys as a great new place to look? I know the cost is on the low side for houses. BP podcast has talked about it a ton in the last few months. The rents are still close to the 1% rule. But how do you guys see the midwest for appreciation in the next 3-8 ish years? 

Ryan,
These "top investment lists" are getting a bit out of hand.  I wouldn't follow the lists/pundits and follow the data and what your personal goals are from an investing standpoint.  What the Midwest is: 1) AFFORDABLE 2) Cashflows.  What the Midwest isn't: 1) An appreciation bell cow, but it also doesn't dip like the coasts either (think more stable) 2) Sexy

I see some questioning if the Midwest is truly legit, because RE agents are chiming in here trying to get business.  Here's a RE broker's perspective:  I get plenty of investors wanting to invest in Iowa all days of the week, but I'm not worried about trying to get out of state investors to invest.  The way I see it, those investors have a set criteria.  Either the market fits them or it doesns't.  There doesn't need to be any salesmanship.

To answer your last question, what do you see from the Midwest for appreciation?  No one has the crystal ball to know with certainty.  My thoughts are we just saw unprecedented migration from COVID where many people and families moved, because they could go where they wanted to go.  Many of these places are now "unaffordable."  Is it too much to envision people will chase "the American Dream?"  Where little Tim and Jenny can get a good education, the family can live in a modest house, and still have enough left over to save for retirement?  I think the only region left in the US that fits this mold is the Midwest.

Does anyone have any insurance companies they've used for insuring a mobile home community with a lagoon?

Quote from @Ethan McManigle:

Hello, my name is Ethan. I'm 22 years old. I want to save up and buy my first property but idk what the best way to save that money is. Should I use a traditional bank account? Should I invest my money in bonds/stocks? If not I looked on Vanguards website and they had a short-term Roth IRA. That I can set up for a personal goal. (Which depends on how much money I need to save up for) I was thinking about doing that for about 3ish years. I would like to save up for a down payment on a duplex. I can put aside about $130 each week. idk if that will change anything or not.

So my questions are

1. Where should I save my money?

2. How much money do I need for a duplex? (USA, Iowa area)

 What metro are you looking at in Iowa?  The amount will vary dependent upon the city/town.

Quote from @Tanner Lewis:

Set aside enough for a 20% down with sufficient reserves. Normally, I suggest aiming for $45k+ if you are looking at $140k+ deals. Note that anything under $100k loan amount will be hard to find financing. 

 That's not true.  I've had plenty of local banks in Cedar Rapids, Iowa willing to loan on deals less than $100k.