Real estate investors all over the country are pumped for 2020, and investors here in Des Moines are no exception!
If you have been considering investing your money in Des Moines real estate, you’re probably hungrily looking through Zillow, Facebook, and Craigslist to find that perfect property.
However, before you start looking for the perfect property for your first (or 30th) investment, you need to sift through the various neighborhoods to make sure your money will grow now, and years down the line.
As your trusty real estate investment specialist here in dazzling Des Moines, I’m breaking down exactly what you need to look for in an investment market and the specific area of Des Moines I believe you should target in 2020.
What Makes A Good Investment Market?
The Job Market: If people are struggling to find work or there is a shortage of high-paying jobs, you can bet your rental income will suffer as a result. The best investment markets include a thriving job market with major companies, universities, and sports teams present.
The Population Trends: Where there is a strong job market, you can expect to see profitable population trends. Anytime when the rate of the population is rising faster than what the housing market can keep up with, you’ll benefit from the classic law of supply and demand.
The Legal Climate: One thing many landlords fail to consider before investing in a particular market is how local laws will serve or restrict them. You should always be aware of relevant laws on things like evictions and tenant lawsuits.
Vacation Rentals vs. Long-term Rentals
Before you can narrow down various real estate markets in Des Moines, or anywhere for that matter, you need to decide how you intend to use the property. Obviously, there are perks to both long-term rentals and vacation rentals. It just comes down to how much time and energy you want to devote to your investment. Vacation rentals can result in a higher yield since you can often rent out a property for a week for the same amount you might charge a full-time renter for a month. However, you will also have the hassle of turning the property over in between each guest which will mean more expenses for cleaning and maintenance.
Southside On The Rise
Regardless of how you plan to leverage your property, you would be wise to set your sights on the south side of Des Moines right now. When we analyze the hallmarks of a strong and sound investment market, you can’t help but get excited for all of the opportunities that lie there. Not only is the area vibrant and buzzing with activity from the many restaurants and businesses in the area, but there are also plenty of apartment buildings and hotels scattered throughout the south side. Apartment buildings are an extremely attractive way to generate tremendous cash flow and long-term profit. However, if the idea of riding the Airbnb train puts a twinkle in your eye, there is a surplus of appropriate properties in the south side of Des Moines that will fit the bill.
Ready To Start Investing In Des Moines Real Estate?
Congrats!
I’m glad that you have seen the light and realized that there is no time like the present to start building your portfolio of lucrative Des Moines investment properties.
However, not all investments, strategies, or properties are created equally.
That is why it is so important that you reach out to me so we can work together to build an investment strategy that makes the most sense for your unique circumstances.