Des Moines, Iowa, is the hottest city in the Midwest. Over the decade from 2012 to 2022, the Greater Des Moines area saw its population grow by more than 102,000 residents.
This was a 16.3% increase from its 2012 population. The area's growth rate was higher than its Midwest peers, including Chicago, St. Louis, and Minneapolis.
A city on the rise is a great place to invest. Here, you can turn a rental property into a passive income stream.
Read on to learn how to find and manage Des Moines rental properties. Explore how to invest in real estate and build a profitable rental company.
How to Find a Des Moines, Iowa Rental Property?
The Internet is the best place to shop for potential investment properties. The Multiple Listing Service (MLS) gives real estate agents and property managers all homes for sale in the area.
You can filter by the type of property you are looking for. There are specific criteria to search for, including square footage, number of bedrooms, and more.
How to Choose a Rental Property?
There are many homes for sale, but the challenge is finding a suitable income property. One that is good for renters and offers them the space and amenities they need. At the same time, you cannot overpay for a property or the return on investment (ROI) is diminished.
The first step in the process is setting a budget for home acquisition. Make sure to factor in renovation and upfront maintenance costs.
Also important is determining how you will pay for the property. Do you have enough to pay cash for the property or is financing required?
With a budget plan in place, you are ready to start shopping. Patience is key when investing in real estate. Impulsive and aggressive purchases often lead to overpaying.
You want to find the right property at a fair price. Traditional real estate purchases are not always the best fit. This is especially true in today's seller's market where inventory is low and home prices are still high.
You may want to explore short sales, auctions, and foreclosed properties. The bank's desire to offload these properties makes for a good investment opportunity.
At the same time, they are harder to secure because of increased competition in the investment community. A property management company can help you find distressed properties and increase your chances of landing one.
How to Manage Rental Properties?
Once you acquire properties, managing them is a new challenge. You are responsible for maintenance, rent collection, tenant screening, and more.
The good news is that there are property management companies to help. They handle all tasking so that your income is truly passive income and requires no additional work on your part.
Your Guide to Buying and Managing a Rental Property
You are now ready to start shopping for rental properties in Des Moines. The population is growing and the demand for housing is there. There is an opportunity for investors to create passive income through real estate.
If you need help buying and managing rental properties, contact us today at PMI Central Iowa to speak with an expert today.
