All Forum Posts by: Matt Fisher

i agree with brian. You will save on rent, but you won't make much...

The number one rule in real estate: never pay retail price.

You should be able to find plenty of decent $40k houses.

What does it look like? 

If the foundation is sinking (i.e. the floors are settled, doors don't shut, cracks above doors And windows) it needs piers, seldom less than $10 k. 

Are the walls bowing or broken? Sometimes an anchor will be adequate ($2-5k?) On the other extreme if it needs a wall replaced it could cost $15k or more if there are mechanicals in the way, etc.

Basement repair companies are easy to find. I have guys I use and are happy to look at potential deals because they know I'll go with them when I'm done. I doubt they'd be happy to work up bids for a wholesaler, who is using them to get a quote and wont be the one ultimately deciding to give them work...

Do you have it under contract? My guess is that if u didn't get it for $50k or better under ARV you might be SOL.

If I can walk through it I can make you an offer.

I used to live in Iowa City and if you could get property there, it's a great place to invest, if pricey (for Iowa) due to the university and quality of the community. Ames for the same reasons. 

For bargains, I think Cedar Rapids would be a great place to look (don't buy in the floodplain) and there is a lot of activity and reasonable properties in the Davenport/Bettendorf, however the neighborhood are really hit and miss. Des Moines is bonkers, but there are still deals.  

For smaller cities, I think Dubuque stands out due to recent gentrification and influx of business.

If I was in your shoes, I don't think I'd focus on these metros and nowhere else. Certainly, there are deals to be found in other cities, but these are kind of the best and the brightest.  Rural communities are dying and have little prospect: they might have deals, but don't count on appreciation.  Young people with prospects are flooding to the cities.

Hope that helps, don't hesitate to ask if you have questions about specifics. 

Des Moines is a hot market now. It's hard to find deals, especially if you're buying off the MLS. I really don't know much about Marshalltown, but I do know its a lower income town.

I'm not clear what your motivations are for investing here... frankly, I would be reluctant to spend all of my money in a market where I couldn't see my house. Also, you will get eaten alive by Property Management costs. I don't think that you could buy a deal off the MLS put it under Property Management and make a dime.

Marshalltown may have an even higher % of sketchy tenants-what do you do if they yrash our house?

Lol @Dave Weis. No kidding. 

@ Chase Keller, I've heard CF has become very restrictive on rentals... I grew up near there and went to UNI.

And BTW Satah, I'm a (former) natural resources manager, as is my wife.

Where in Iowa? 

Welcome Michelle.

You will run around like a headless chicken to some degree, that's all part of the process.  It gets easier as you go, but there will always be challenges to overcome too!

I play guitar.  I didn't know how to at first, so I bought a guitar.  Soon I realized that I needed help, I got an instructor and started taking lessons, as well as reading.  It hasn't been easy but if I hadn't got my guitar, it never would have happened.

I believe that as an aspiring investor the best thing you can do before you invest in your first property is just get a BASIC understanding of what lies before you.  Do NOT focus on the details of this until they pop up-just recognize that they're out there and you will have to make choices about them AT A LATER DATE. 

Likewise, don't worry about a "Network", it will build itself.  When you need an attorney you will get one, when you need an agent, you find one, etc.  

It may help to get moving by investing money in some aspect of your business. I got an LLC and started a LeadPropellor website and that financial outlay was enough to convince myself that I was no longer thinking about becoming an investor, and I was actually becoming one! My next most important step was summarizing my financials and speaking with a portfolio lender. Once you know what others will lend you, it becomes way easier to focus on what you can do next! If they're good, they will help you to succeed because they want to lend you money!

Hope that's helpful!

Matt

Hi Jon!

Do you want to invest in Des Moines? I'm fairly new to Des Moines and I've been doing RE Full time for about a year. I got a slow start but learning fast... It's work, but fun.

All the best,

Matt

Hi Logan,

In regards to your second question, it would be helpful if you explained your investing goals... A balloon certainly is a good way to get more cashflow up front, if that's your need.