Are rents going to swing though significantly in the Midwest do you think? If im investing in the MidWest I am likely to seek CoC returns and am less concerned at that point of time with appreciation. You're long-term holding with cash on cash returns and these blips in time become less meaningful.

Now if you cant get that CoC return right now , you might not have that business case, but can't say I know anything about average rents, costs, etc. in midwest USA right now.

Back in time I used to frequent Bigger Pockets, but its been 5+ years now.

This post was edited by SBD on Aug 19 2025 11:08am

Personally i don't think we see large swings in rents in Mid-west. This area really didn't see the highly speculative buying and home builders going ham vs Florida/Texas so supply is still somewhat constrained. I still think what you pay for the asset is very important and we aren't close to true price discovery yet. I think a lot of people saw what happened between 21-24 with home prices exploding higher but with changing immigration policy, slowing growth, and so on, i don't think think you're going to see any where near that same level of home price appreciation. There's a lot of people stuck in a lot of those hot markets that will take losses if they bought between 21-24. I tend to agree with Dalio's take that he shared recently. If you are going to buy IMO better to when there's blood in the streets.

https://x.com/RayDalio/status/1954930922689606092

Ultimately depends, I think via proper analysis, sifting through mid-west properties there's probably still opportunity for an immediate cash return if that's what you're seeking.

For someone like Bazi who is already likely highly taxed as a medical professional, cash return now may not be the most advantageous investing route, and a property that has greater return derived from appreciation may be more advantageous but as you say, that avenue might not be available right now.

If you're just looking to build out a future income stream for retirement though and its closer on the horizon than further, I think there's probably still good markets for that, but I am ultimately speculating since like I said I haven't been part of that community in ages.

Storage industry is experiencing a correction right now
Some of the facilities I manage are seeing way more people move out than in this summer. Which is bad.
Wouldn't invest in that right now unless it's like RV storage but even that's bad because there's no way the US escapes recession with Trumpf flipping the table. Recession is usually bad for high dollar purchases.
You might try a low unit count motel with homelessness on the rise. They're filled to the brim with homeless people.

This post was edited by Bruv on Aug 22 2025 03:14pm

Rates are near peak

As they fall traditionally housing prices go up 10% per 1% drop in 30year fixed

Not gonna plan on timing a housing crisis.

Mid west the market is much more stable than FL, CA, NY etc. especially metro (lol) Iowa

I ended up getting a 290k property (offer accepted, pending closing still), ~1900 sq foot 2004 build but well maintained. Actually renting it out to my younger sister in law at a bit of a discount til she gets her career going

Even if I break even or lose several hundred a month , I’m ok with this. Right now I’m losing cuz I’m renting to family but this isn’t the longterm plan , just for the next 6-12 months. Hopefully it goes well and I will add another one or more over the next year or 2.

My goal isn’t monthly income from this project, but rather just increased equity/net wealth 1, 2, 3 decades from now etc

Honestly with AI I just don’t know how safe my field of work is in 10 years so looking to diversify now while Income is stable

This post was edited by Bazi on Aug 24 2025 07:43am

Duplexes wouldn't be bad, that's where the math makes sense if you are able to rent out upper part of the home and the basement separately. The basement would have to be renovated ofcourse.

Side note

Crazy how the housing market stalled while companies were spending billions of dollars on extra tarriff free stock and materials

It's almost like the two were related or something

Its stalled out because median buyers can't afford median price and many sellers can't justify leaving a low rate. Around here, it's shifting towards buyer as some can afford to buy but will not buy the shit inventory.

One head scratcher is out of town investment firms. They can somehow acquire property 650k and up and let it sit vacant for a long time. How does an investor own property without cash flow that long is a mystery.

Perhaps the tarrif stalled out would be real estate investors.

I'd wager next Spring would be a good time to buy