Property Management Blog

Top Tips When Buying Investment Property in Waterloo

EPM Iowa LLC - Friday, April 14, 2023

Investing in real estate is one of the most stable ways of building wealth, and Waterloo, IA is a great place to start. Whether you are a seasoned real estate investor or just starting, Waterloo offers a great opportunity to grow your investment portfolio. 

In this article, we here at EPM Iowa will cover our top tips to consider when buying investment property in Waterloo, IA.

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Why Should You Invest in Waterloo, Iowa?

One of the main reasons to consider investing in real estate in Waterloo is the low cost of living throughout the state. This means you can purchase properties at a relatively affordable price compared to other states in the US. 

The low cost of living in Waterloo also benefits landlords as they can offer rental properties at a lower price point and maintain profitability. In addition, lower living costs may also attract a diverse range of tenants, including students, young professionals, and retirees.

Iowa is known as the breadbasket of America due to its thriving agricultural industry. It is one of the country's top producers of corn, soybeans, and pork. This makes it an attractive location for investors looking to purchase farmland or properties in rural areas. 

Additionally, agricultural properties in Waterloo may benefit from government subsidies and tax incentives to promote the agriculture industry.

This creates opportunities for real estate investors in the hospitality industry. Investors can purchase properties such as vacation rentals, bed and breakfasts, and hotels in Waterloo to cater to the growing number of tourists. 

Another advantage of investing in real estate in Waterloo is the lack of traffic congestion. Unlike larger cities, Waterloo has relatively little traffic, making commuting and transportation easier and less time-consuming. 

This can be a significant factor for renters, particularly those who commute to work or school. Additionally, the absence of traffic congestion can create a more peaceful living environment for tenants.

Our Top Tips to Consider When Buying Investment Property

Property Appreciation Rate

One of the critical factors to consider when investing in real estate is the property appreciation rate. The property appreciation rate refers to the rate at which property values increase over time. 

As an investor, you want to purchase a property that will appreciate, providing you with a substantial return on investment in the long run.

To determine the property appreciation rate, you can research historical property values in the area and look at local real estate market trends. You can also consult a property manager, such as the team here at EPM Iowa, to gain insights into the expected property appreciation rate for a particular area in Waterloo. 

When selecting an investment property, it's important to consider its location, age, and condition, as these factors can impact the property's appreciation rate.

Population Growth

Population growth is another critical factor when investing in real estate. A growing population indicates increased demand for housing, which can drive up property values and rental rates. You can research population growth trends in the area by analyzing census data and consulting with local real estate experts. 

In addition to population growth, you should also consider demographic trends, such as the age and income levels of the population. Understanding the demographics of an area can help you determine the type of property to invest in and the rental rates you can charge.

Property Taxes

High property taxes can eat into your profits and reduce the overall return on investment. When selecting an investment property, you should research property tax rates in the area and factor them into your financial analysis. It's also important to understand how property taxes are calculated in Iowa. 

Property taxes are based on the property's assessed value, which the county assessor determines. The assessed value may not necessarily reflect the property's market value, so it's essential to review the assessment and dispute any inaccuracies.


Many property owners concentrate on the ownership of an investment property and forget about the management and the future tenants. Don’t make the same mistake! 

The quality of the management will determine the success of your rental investment in Waterloo real estate. Management can eat up several hours of your day. It requires you to put in the time inspecting the property, reading up on new legal developments, and also following up on late rental payments if any. 

To free up your time and ensure that your property’s needs are met comprehensively, rely on the help of a reputable and experienced local property management company. 

Thankfully, we here at EPM Iowa Realty and Property Management are just that company! Call us today to find out more about how we can help you maximize your rental property’s ROI.


In conclusion, investing in real estate in Waterloo can be a lucrative financial decision. However, make sure you do your research on the property appreciation rate, population growth, property taxes, employment industry diversity, and management.

At EPM Iowa Real Estate and Property Management, we provide various services to help landlords maximize their return on investment. Our team of experts can assist with tenant screening, lease agreements, marketing, financial reporting, maintenance and repairs, and much more. 

We are dedicated to helping clients achieve their financial goals and create long-term wealth through real estate investment.