The Investing In Iowa ShowPodcast EP64: "Family Roots & Rental Returns with Jacquelyn Duke"
Click the picture or click HERE to listen! (The first 15 minutes shares Jacquelyn's path into real estate - fast forward if you want to get straight into the REI info.)
"Jacquelyn Duke grew up learning business and entrepreneurship on her family farm, but never imagined she’d end up in real estate. Yet, her diverse experiences—ranging from legislative correspondent to paralegal, educator, and labor doula—prepared her for the closing table.
In this episode, Jacquelyn shares how her unique background makes her a better Realtor and investor today. She also offers practical advice on analyzing real estate deals, managing tenants, and using real estate to teach family values. Key Takeaways
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A Few Favorite Resources to Get Started...- Bigger Pockets has SO MUCH to offer! Comb the website for blog posts, videos, calculators and more!
https://www.biggerpockets.com/resources - Robert Kiyosaki's "Rich Dad, Poor Dad" book & website is foundational for understanding the benefits and thought process involved with passive income. Buy the book here: https://www.richdad.com/about/rich-dad - "Managing Rental Properties" by Heather and Brandon Turner: An easy read with foundational principals. Read it BEFORE trying to manage your first property. You'll be glad you did! BONUS - it comes with modifiable forms covering all kinds of paperwork you will need, such as lease agreements, minimum qualification standards, move in/move out forms, etc. Evaluating a Deal Using "The 10% Target"Remember: Real Estate Investing has ALL of these potential income producing benefits that must be fully considered when evaluating a deal!!!
1) Cash flow (based on Cash on Cash Calculation: annual cash flow after debt payment, divided by upfront cash that the buyer must put into the property to acquire it, (ie. basis - such as the down payment, closing costs and improvements to be rent ready.) 2) Amortization (paying down the loan with rental income) 3) Value Add (improving the property) Personally, we don’t plan to do much more beyond keeping it in shape, so this is usually 0% for us) 4) Market Appreciation (depends on where your are located. Ask your trusted real estate agent) For example, our preferred market of Ankeny is solid at around 3%-6%. 5) Tax Benefits (Ask your accountant) For us, it's around 1%, mostly due to our ability to write off mortgage interest and expenses. The 10% Target Rule takes ALL of these benefits into account when analyzing a deal, not just cash on cash (cash flow)!!!! A REAL LIFE EXAMPLE FROM ONE OF JACQUELYN'S OWN DEALS: We bought a property with the following metrics in Uptown Ankeny.......... CASH FLOW: - $42,000 down (25%) plus $3000 to get it ready for renters, so $45k put into the property to acquire it, which is our “basis” (we did pay closing costs on top of this, but we were given a credit back from the seller due to Iowa paying taxes in arrears.) - Annual cash flow after debt payments is about $4860 ($405 cash flow per month X 12 months) $4860 / $45,000 =-0.108 Cash on cash = 10.8% AMORTIZATION: - 3% : (principal paid down each month X 12 = about $4800) VALUE ADD: 3% - (we updated the kitchen & bath & painted everything, roughly a $5000 improvement) MARKET APPRECIATION: 3% in a slow year is conservative for Ankeny. TAX BENEFITS: 1% - (mostly due to our ability to write off mortgage interest and expenses) This deal has an ROI of 20.8%... FAR above the 10% Target, at least for our first year…. The second year we likely will not have the value add, but we might have better market appreciation - and our annual cash flow should improve with rental rate increases, which average 2% a year….. So it’s likely to stay close to this incredible total rate of return! Jacquelyn LOVES investing in the right real estate deals, because they tend to have the following benefits: - A better return than stock market’s average of 8% - Overtime, real estate benefits tend to get better over the life of the investment, as rents increase and purchase price and fixed debt payments stay the same. - It's a tangible asset that we feel we can directly influence with good property management. - REI is a known hedge against inflation. |
Feel free to text, leave a voicemail or send a quick email. I'll get back in touch with you as soon as possible!
Contact Jacquelyn Today!
contact info |
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phone / business hours |
M-F 9am-6pm
Sat. By appointment Sundays - CLOSED SHOWINGS - By appointment Monday-Saturday 9am-8pm |
address |
Realty One Group Impact
617 SW 3rd Street, Ste 101 Ankeny, IA 50023 |
Disclaimer: The material on this site is solely for informational purposes. No warranties or representations have been made.
If your property is currently listed with a real estate broker, please disregard. It is not our intention to solicit the offerings of other real estate brokers. We are happy to work with them and cooperate fully. This information is believed to be true and accurate however can not be guaranteed by the listing firm or agent.
Disclaimer: The material on this site is solely for informational purposes. No warranties or representations have been made.
If your property is currently listed with a real estate broker, please disregard. It is not our intention to solicit the offerings of other real estate brokers. We are happy to work with them and cooperate fully. This information is believed to be true and accurate however can not be guaranteed by the listing firm or agent.