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Home Flipping Sales and Profit Margins Both Decline Across U.S. in 2020

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Number of Homes Flipped by Investors Decreases for First Time Since 2014 ATTOM Data Solutions, curator of the nation’s premier property database, released its year-end 2020 U.S. Home Flipping Report, which shows that 241,630 single family homes and condos in the United States were flipped in 2020, down 13.1 percent from 2019 to the lowest point since 2016. The number of homes flipped in 2020 represented 5.9 percent of all home sales in the nation during the year, down from 6.3 percent in 2019 to the same percentage seen in 2018. The declines in the number of homes flipped in 2020, as well as the portion of home sellers represented by investors, marked the first time since 2014 that both measures decreased annually. While flipping activity declined, gross profits and profit margins shifted in opposite directions. Profits rose in 2020, but profit margins dipped—the third straight year that returns on investments declined. Homes flipped in 2020 typically generated a gross profit of $66,300 nationwide (the difference between the median sales price and the median amount originally paid by investors). That was up 6.6 percent from $62,188 in 2019 to the highest point since at least 2005. But the typical gross flipping profit of $66,300 translated into just a 40.5 percent return on investment compared to the original acquisition price. The latest ROI (before accounting for mortgage interest, property taxes, renovation expenses and other holding costs) was down from 41.5 percent in 2019 and from 46.4 percent in 2018. The 2020 ROI was off more than 10 percentage points from peaks over the past decade in 2016 and 2017. The 2020 figure also stood at the lowest point since 2011. Investors saw their profit margins dip again during a year when the median value of the homes they flipped rose more slowly than the median price they paid to purchase properties—8.4 percent versus 9.1 percent. The decline in home-flipping profits marked a rare weak spot in the U.S. housing market, which otherwise boomed in 2020 despite economic damage caused by the worldwide Coronavirus pandemic. “Last year was a banner year for the U.S. housing market, with the apparent exception of the home-flipping business, which saw its fortunes slide a bit more in 2020. Home flippers did still make a nice profit on investments that generally take around six months to turn around—just not as much as they did in the previous few years,” said Todd Teta, chief product officer at ATTOM Data Solutions. “It’s too early to know if that small slide was a sign of weakness in the broader housing market or just a bump in the road. We will know much more as we gauge other key market metrics in the coming months.” Home flipping rates down in 64 percent of local markets Home flips as a portion of all home sales decreased from 2019 to 2020 in 126 of the 198 metropolitan statistical areas analyzed in the report (63.6 percent). Nine of the 10 biggest decreases in annual flipping rates among MSAs came in the South and West, led by San Antonio, TX (rate down 27.3 percent); Tuscaloosa, AL (down 25.7 percent); Santa Rosa, CA (down 24.8 percent); Brownsville, TX (down 24.1 percent) and Houston, TX (down 22 percent). Metro areas qualified for the report if they had a population of at least 200,000 and at least 100 home flips in 2020. Aside from San Antonio and Houston, the biggest decreases in flipping rates in 2020 across MSAs with a population of 1 million or more were in Indianapolis, IN (rate down 19.3 percent); Las Vegas, NV (down 19 percent) and Austin, TX (down 18.4 percent). Home flipping rates increased from 2019 to 2020 in 72 metro areas with sufficient data toanalyze (36.4 percent). The largest annual increases in 2020 in the home flipping rate came in Norwich, CT (up 38.2 percent); Hartford, CT (up 31.1 percent); Boulder, CO (up 29 percent); Albuquerque, NM (up 26.9 percent) and Anchorage, AK (up 26.2 percent). Typical home flipping returns up in 2020 to highest level in at least 15 years Homes flipped in 2020 were sold for a median price nationwide of $230,000, with a gross flipping profit of $66,300 above the median original purchase price paid by investors of $163,700. That national gross-profit figure was up from $62,188 in 2019 and from $64,000 in 2018 to the highest level since at least 2005. Among the 53 markets in the U.S. with a population of 1 million or more, those with the largest gross-flipping profits in 2020 included San Jose, CA ($274,000); San Francisco, CA ($171,000); New York, NY ($152,000); Los Angeles, CA ($151,500) and San Diego, CA ($147,750). The lowest gross-flipping profits among metro areas with a population of at least 1 million in 2020 included Raleigh, NC ($30,000); Houston, TX ($37,174); San Antonio, TX ($39,867); Las Vegas, NV ($45,600) and Charlotte, NC ($46,000). But typical home flipping returns decline for third straight year With median resale prices on home flips rising more slowly in 2020 than they were when investors were buying properties, the profit margin on the typical flip in the U.S. last year fell to 40.5 percent, from a 41.5 percent in 2019 and 46.4 percent in 2018. The typical 2020 ROI was off more than 10 percentage points from peaks during the past decade of 51 percent in 2016 and 2017. Among metro areas with a population of 1 million or more, the biggest decreases in profit margins in 2020 were in Jacksonville, FL (ROI down from 52.2 percent in 2019 to 39.4 percent in 2020); Richmond, VA (down from 84.4 percent to 73.6 percent); Cleveland, OH (down from 108.2 percent to 98.5 percent); Birmingham, AL (down 65 percent to 58.6 percent) and Pittsburgh, PA (down from 133.8 percent to 128.1 percent). High-level takeaways from fourth-quarter 2020 data The 51,993 home flips in the fourth quarter of 2020 were completed by 43,929 investors, a ratio of 1.18 flips per investor. The share of homes

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When Evolution is the Constant, Relationships Matter Most

Brad Cossingham’s Journey From Fax Room to CEO by Carole VanSickle Ellis Brad Cossingham, CEO of National Field Representatives (NFR), grew up around the property preservation business. “My father founded the company in 1989 when he purchased two existing companies and formed NFR,” Cossingham explained. “As a kid, it was not uncommon for me to be sent to the corner drugstore to have the films by the contractors developed. This was the practice before the adoption of digital photography.” Cossingham left home for Bentley University in 1998 and earned a degree in business administration and management, but returned to NFR in 2003 to begin an extended training process. The senior Cossingham was determined not to treat his son differently than any other employee in the company, and he made that goal clear from the time the young man started in his first formal position. “My dad made it very clear that I would have to earn a place at NFR,” Cossingham recalled. Earn that place he did, working nearly every position in the company over the following years. Cossingham started out as a property inspections coordinator, spent some time in the fax room, worked in the insurance loss department, had a role in IT, and ultimately “got hooked,” as he put it, on property preservation. “That is where I moved into a management role and ultimately became vice president of property preservation, then senior vice president of operations, and, eventually, president and CEO,” he said. “A lot has changed since the fax room,” Cossingham laughed. The fact that Cossingham not only remembers getting contractors’ film developed at the corner drugstore but was actively employed in the fax room where companies used to handle much of their “instant communications” is a testament to just how much experience he has in the property preservation space—and how well-equipped he is to lead NFR through yet another evolution during COVID-19. “Things have evolved since I started, and they are changing even more now,” he said. “We have come a long way from when processing just 400 inspections took a week to complete. Today, the same volume takes us only four or five minutes!” Perhaps the biggest shift since the start of 2020, of course, has been the decline of in-person communications as COVID-19 concerns and health policies created barriers between service providers like NFR and company clients used to seeing representatives in person. Fortunately, communication is a strong suit for NFR and flexibility is a point of company pride. “From our beginnings in 1989 to today, interactions with our clients have certainly morphed,” Cossingham said. “In the early years, there was less face-to-face interaction and a lot more paperwork. We used to send reams and reams of paper to contractors to place orders, then process the hard-copy results in order to provide our clients with hard-copy reports, photos, and invoices. Then, we transitioned from hard copy to fax, and then to electronic communications. As that happened, we also began to increase our face-to-face interactions. Today, we have adopted technology to aid in the ‘face-to-face’ interactions while travel is restricted due to the pandemic. It’s an entirely new challenge, but we know communication remains crucial.” Cossingham said that NFR’s determination to communicate with clients and investors clearly and reliably has played an integral role in the company’s ability to navigate other changes in the economy and the industry over the past three decades. “The question has always been, ‘How do we best communicate?’ That is the question whether you are corresponding through a digital platform, over the phone or fax, or in person,” he said. “Our top priority remains staying in touch with our clients and ensuring they know that we value the relationship. We care about them as human beings as well as business partners, and our focus is creating and maintaining long-lasting, mutually beneficial relationships.” To some clients, this means that NFR representatives are willing to get on a plane and meet in person (following appropriate safety precautions of course), but for most, it means being willing to talk via phone or video when the client is available—even if that availability takes place outside traditional business hours. Cossingham said NFR frequently contacts clients simply to check in even if the account is not currently experiencing any unique challenges. That, he said, is an indication of how the entire company operates: very much like a family. This mindset extends not only among employees, but outward to clients and contractors as well. Cossingham said proudly that NFR employees model this perspective in all their business interactions. “We are where we are as a business because of our employees,” Cossingham said. He explained NFR still views itself as a family business despite having hundreds of employees and an extensive contractor network across the country. “Early in the pandemic, we decided to stay the course and worked hard to retain as much of our team as we possibly could. We were successful. I am pleased to say that we have navigated the pandemic with no layoffs.” The key to this success lies in the flexibility that Cossingham’s father demanded of the organization when he started the company. Cossingham says this flexibility enabled the company to dedicate much of 2020 to working on procedures and systems that will help clients and the company navigate the foreclosure surge most analysts predict will begin when foreclosure moratoriums and eviction bans end in late 2021. “There is another side to the moratoriums and forbearance plans,” Cossingham warned. “We have to be top notch, prepared, and ready to assist our clients when restrictions are removed and default inventory surges.” NFR dealt with a foreclosure surge of a different nature in the wake of the housing crash in the mid-2000s. “We have seen large shifts in volume before, and we are even better prepared this time,” Cossingham said. Thanks to a wide base of contractors and two decades of experience in the business in 2008, NFR was able to ramp up operations

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Cinch

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A Home Warranty Solution For Build To Rent Communities Home Warranties are a Great Investment for Community Developers Renters in many markets are taking advantage of the rising number of Build to Rent (BTR) Communities. BTR appeals to a broad range of renter demographics that are looking for an improved living experience. Many new investors are understanding the appeal as well. Research shows that more millennials are choosing to rent homes because it allows them greater flexibility and more opportunity to enjoy their lives without many of the typical burdens of home ownership. The millennial household is less interested in taking care of a home than previous generations, and more interested in having the time to pursue other interests. Similarly, BTR appeals to seniors because it allows for their equity to be cashed out while simultaneously upgrading their home’s features and surroundings. Seniors are typically downsizing in favor of single-story homes, community amenities and easy maintenance.  Universally, one of the biggest challenges for investors in rental properties is typical repairs and maintenance items, estimated to be up to 15% of the rental value of the unit. As a safety net, BTR community developers should consider investing in a home warranty product to effectively manage these costs. “Home warranties for BTR units are a great investment for community developers,” said Adam Brown, Vice President at Cinch Home Services. “A Cinch new home construction warranty is purchased at closing and covers the property for mechanical breakdowns for major systems and appliances for years two through four of home ownership.” Typically, developer agreements require manufacturers to be responsible for any breakdowns or malfunctions during the first year, with the home warranty company then assuming responsibility after year one. After the fourth year, the warranty may be renewed on an annual basis. Developers can cover years two through four for a cost commonly less than the fifth-year renewal, making the new construction warranty a viable consideration for both the developer and occupant. Cinch home warranties are available in the continental U.S. and provide developers a cost-effective solution for managing potential system and mechanical breakdowns in their portfolio. Coverage includes central air conditioning and heating systems, central vacuum systems, electrical systems, garage door openers, jetted bathtubs, kitchen and laundry appliances, plumbing systems (including clearing plumbing stoppages) and sump pumps and water heaters. Optional coverage can be purchased for outside water, sewer and gas lines, pools and spas, water softeners, and well pumps. Deductibles are available in the amounts of $100 or $200 per service job. Specific features in the new home warranty that BTR community developers will appreciate include Cinch’s lodging reimbursement. Renters are reimbursed up to $1,200 for a hotel/motel stay if their central cooling or heating system is non-operational for 24 hours or more from the time of the first contractor visit. Another benefit BTR developers can utilize is Cinch’s emergency locksmith/lockout service reimbursement. “Home warranty claims can be made by the landlord or tenant and make repair and replacement a much easier process to manage,” said Brown. “Cinch provides BTR developers convenience as well as cost certainty for the first four years. When things break down, contact Cinch 24/7 and we will match you with a prescreened licensed professional to get the job done.” The ongoing Covid-19 pandemic has kept more Americans at home, with many planning to continue working from home even after the pandemic ends. Furthermore, as more seniors retire from the workplace, they will be replaced with a younger workforce less interested in being geographically tied to their employers. It is intuitive to believe that the rental market will respond with exponential growth, placing an even greater demand for BTR community development. More people working from home translates to more home maintenance needs. “At Cinch, we have seen a marked increase in appliance claims in the last year and attribute it to more people at home simply using their appliances with greater frequency,” said Brown. “We believe this trend will continue well into the future.” Renting makes trendier, more desirable areas more accessible to all. Yardwork, maintenance, repairs, upkeep…all contribute to significant cost and time associated with owning a home. For many individuals, passing these responsibilities to a landlord can be a huge upside decision. Similarly, a landlord can utilize a home warranty for 24/7 emergency calls to buffer the challenges of managing an entire BTR community.  As a member of the National Home Service Contract Association, Cinch has been serving the real estate community for over 40 years, manages the nation’s largest network of service professionals, and proudly offers the industry’s only 180-day service guarantee. Cinch serves nearly one million homeowners across the contiguous 48 states and can handle your homes as well. If you have any questions regarding home warranties for any type of dwelling, contact Adam Brown, Vice President at Cinch Home Services, at adbrown@cinchhs.com. Adam Brown is the VP of Cinch Real Estate. Adam leads Cinch’s field sales efforts throughout the nation. He and his team are engaged in a variety of partnerships and support residential real estate transactions.   Before Cinch, Adam was senior manager at Direct Energy, where he led the strategic sales team with energy revenue of $250 million per year by engaging partners such as Amazon, Google, Yelp and IAC. In 2017, Adam served as head of strategic sales for Direct Energy’s Home Warranty of America, and prior to that, he served as head of strategic sales for Direct Energy’s three home-service brands: One Hour Heating and Air, Mr. Sparky and Benjamin Franklin Plumbing. Adam also served as the head of sales and marketing for Newpoint Media Group.

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The Mid-Pandemic Battle of Legal Interpretation

Centers for Disease Control Eviction Order and Constitutionality Dilemma by Jenna Baum, Esq. and Justin Ortega, Esq. Early September of 2020, six months after the pandemic began and while many state eviction moratoriums had already come to an end, the Centers for Disease Control and Prevention stepped in with an added protection to the landlord tenant eviction process, issuing their own “Temporary Halt on Residential Evictions” (85 FR 55292). The background of the Order provides that purpose of the CDC eviction moratorium is to prevent homelessness and thus the spread of the novel Coronavirus, as well as reinstate some of the eviction protections of the CARES Act with extra protections put in place. Who is covered under the CDC Order? “Under this Order, a landlord, owner of a residential property, or other person with a legal right to pursue eviction or possessory action, shall not evict any covered person from any residential property in any jurisdiction to which this Order applies during the effective period of the Order. This Order does not apply in any State, local, territorial, or tribal area with a moratorium on residential evictions that provides the same or greater level of public-health protection thanthe requirements listed in this Order.” Furthermore, the “covered person” that shall not be evicted prior to March 31, 2020, is defined as: “Any tenant, lessee, or resident of a residential property who provides to their landlord, … a declaration under penalty of perjury stating that they meet the criteria laid out within the CDC Declaration form.” Very distinct details of what must be attested to in the CDC declaration in order for an occupant to be protected by the Order include: the occupant must declare that they can not make housing payments due to substantial loss of income, that they have made best efforts to obtain assistance for rent or housing, that they expect to earn less than $99,000 in 2020 as an individual or no more than $198,000 if filing a joint tax return, and finally that an eviction would render the individual as homeless. It is also important to note that under this Order, occupants may still be evicted for reasons other than not paying rent or making a housing payment. The Order specifically mentions that evictions may still move forward based upon whether the tenant engaged in criminal activity on the property, is threatening the health or safety of other residents, is committing damage to the property, or is violating building codes. The moratorium is not automatic; in fact, the Order requires the tenant to trigger their own defense by delivering the completed CDC Declaration form to the owner of the property. The owner must then review to ensure the tenant meets the outlined criteria and once verified immediately halt all eviction efforts until after March 31, 2021. Since the original sunset of December 31, 2020, the CDC moratorium has been extended two times—once by federal legislation through January 31, 2021 (134 Stat. 1182, 2078-79) and the other extension by the CDC through the current sunset date of March 31, 2021 (86 Fed. Reg. 8020). Financial penalties for an individual could result in fines of $100,000 to $250,000, with corporations being fined anywhere from $200,000 to $500,000 for violations. Out of an abundance of caution, some landlords have taken affirmative actions to add CDC language into their rent demands to avoid these possible fines and to provide a mitigating factor should Courts make a finding against them. Courts in Confusion The courts have varied on how to interpret the CDC order. While some courts have requested attestations from tenants, other courts are using their equitable powers to not require an affidavit or showing from the tenant while still providing relief pursuant to the CDC order. Other courts have refused altogether to hear a case upon a tenant eviction. In Spicliff, Inc. v. Steven Cowley, the County Court in Escambia Country Florida held that the CDC’s order violated the Fifth Amendment based upon a taking, and that the government cannot force landlords to house persons in a pandemic without due process and just compensation. (2020 Fla. Cty. LEXIS 1) In contrast, Brown v. Azar, a landlord argued that the CDC order was arbitrary and capricious, tantamount to a taking of their residential property, and denied homeowners access to the courts. In Brown, the United States Court for Northern District of Georgia, Atlanta Division, the court reasoned that the CDC had the authority for the order and further that the landlord did not satisfy the standards to obtain a preliminary injunction from the order. (Brown v. Azar, 2020 U.S. Dist. LEXIS 201475) Arguments have been made that the ability for the federal government to issue this halt onresidential evictions was based upon the Commence Clause, Article 1, Section 8, Clause 3 of the U.S. Constitution, granting the government the ability to regulate commerce among the states. Contrary to this is the 10th amendment which provided state government powers not specifically given to the Federal Government. “Although the COVID-19 pandemic persists, so does the Constitution,” – United States District Judge J. Campbell Barker The larger question still loomed—does the CDC even have the authority to create such an order restricting the rights of a homeowner to evict during a pandemic? On February 25, 2021, the United States District Court Eastern District of Texas made a ruling in a tenant eviction case Lauren Terkel v. Centers for Disease Control and Prevention (Terkel Case) that the CDC (Federal government) did not have the powers to enforce an eviction moratorium. The court elaborated that the CDC’s argument of halting evictions via the Commerce Clause through regulating interstate commerce was insufficient and too attenuated as there are more interstate movements by divorce in comparison to foreclosure and evictions. Finally, the Court stated that the CDC order exceeds the power granted to the federal government via the Commerce Clause and held unlawful as contrary to constitutional power. (2021 U.S. Dist. LEXIS 35570) Where we stand today

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Investor Profile

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Alan Washer Sweet Home Chicago Born and raised in Chicago, Alan was working for American Remodeling and enjoying a very successful corporate career. In 1988, a promotion moved him from Chicago to just outside of Los Angeles until his job took him next to Dallas in 1995. The person who helped Washer with his final relocation from Los Angeles to Dallas was a realtor who also bought and sold homes. The realtor lit the “investor” spark in Alan which ultimately led to a phone call with Ken D’Angelo, who founded HomeVestors of America, Inc. in Dallas and began franchising in 1996. The stage was set! Alan got married in 1993 to his now-wife Maria, and had a son, Erik, in 1996. So, he left American Remodeling in 1999 to start his HomeVestors franchise in Dallas. Even though Alan attributes much of his current success to what he learned in the corporate world for fifteen years, the life-family-work balance was lopsided. He wanted to spend more time with his new family and not travel as much. Then, their daughter Alexandra was born in 2001, and Alan and Maria decided they wanted to be closer to family. In July of 2003, they moved back to Illinois. Alan sold his Dallas franchise and bought the Chicago franchise covering Cook and DuPage counties. That then grew into Lake and McHenry counties. That then evolved into Alan becoming the Ad Council president for Chicago (until he moved to the northern Chicago market) and the Development Agent for Chicago and Northwest Indiana in 2008 when the DA program started. With a burgeoning business, Maria stepped in to handle the bookkeeping, staging, and design side of the operation for Value Properties, Inc. Did the Washer’s attain what they wanted? Business is obviously excellent, but just as important is the achievement of balancing family and work. In Alan’s words, “The flexibility that comes with being a HomeVestors® independent business owner is so important. It did take some time to ramp up and get comfortable with what we were doing, but right off the bat it did allow me the flexibility to go to any of my young son’s school events and games. When my daughter was born it allowed the same flexibility.” He went on to add, “And as both kids got older there was really nothing my wife and I missed related to the kids, whether it was parent conferences at school, plays, musicals, soccer for my son and dance or ballet for my daughter. As the kids grew and things got more competitive, my wife and I were always able to travel for soccer games for my son through middle school, high school and even college and the same for my daughter while she was in competitive show choir and dance in high school.” Success Comes from Following the System Besides his excellent work ethic, Alan attributes his success to always being respectful of other people (not so common these days), always being on time (as simple as that sounds) and FOLLOWING THE HOMEVESTORS TRAINING MANUAL AND SYSTEM! Alan also gives a huge amount of credit to HomeVestors for creating the Development Agent program in 2008. The DA program provides the necessary field support for both the new business owner as well as the seasoned ones. An additional piece of advice: “You need to be passionate about helping people!” HomeVestors What exactly does it mean to be a HomeVestors business owner? Owning a real estate business is life changing and naturally comes with risks! When you become a HomeVestors® business owner, you get immediate access to motivated seller leads, financing resources, one-on-one coaching with your local Development Agent, proprietary software for analyzing properties and deals, and access to a nationwide network of coaches and peers. Your house-buying business is yours and you run it as your own venture. If you are interested in a franchise, contact April Nealey at april.nealey@homevestors.com Each franchise office is independently owned and operated.

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Davenport, Iowa

“Iowa’s Front Porch” Leaves the Light on for Investors  by Carole VanSickle Ellis Davenport, Iowa, also affectionately dubbed “Iowa’s Front Porch,” was on the rise in 2010. It was Iowa’s third-largest city (or maybe bigger, since the municipal government later appealed the U.S. Census count saying the bureau had missed a large section of residents), had dramatically upped its fiscal budget by $35 million thanks to rising property values and the associated property taxes, and was set to receive several recognitions for its “livability”. Things were starting to look a little bit brighter for a city that had struggled through the housing crash of the mid-2000s with some of the highest foreclosure rates in the area. A decade later, Davenport is definitely making good on that recovery. Prices are rising and, in conjunction with low interest rates, Davenport has become one of the most affordable cities in the country. That affordability does not necessarily mean it is easy to buy a house, however, and it does not mean that the city is not experiencing appreciation. Year-over-year, Davenport posted a nearly 12-percent rise in median list prices in February 2021, and median home values had climbed by nearly 30 per cent in the attractive $55,000-$110,000 range according to NeighborhoodScout.com. Home prices overall have risen in the region by just over 19 percent in the last five years. Local real estate professionals expect more appreciation and strong market growth in 2021. “Low mortgage rates have been the key reason for the housing market’s strong performance in the midst of the pandemic and high unemployment,” observed Ruhl & Ruhl Realtors in their Spring Forecast. The group predicted that interest rates could rise, and home prices would remain attractive. “The good news for buyers: more homes are likely to become available during the last six months of 2021,” they added. If Ruhl & Ruhl analysts are correct, that is, indeed, great news for buyers. At present, there is high demand for anything under $900,000, and a white-hot market for anything below $300,000. Caroline Ruhl, CEO of Ruhl & Ruhl, noted that overall inventory is down 19 percent year-over-year with only 3.5 months of housing inventory supply. This means that retail buyers and investors alike are competing fiercely for anything that goes on the market, with some homeowners reporting making an offer before ever seeing the property they plan to buy. “We’re so desperate for that inventory,” Ruhl said. “If you list it, it will sell,” agreed a local compliance officer in an interview with the Quad-City Times. The Quad Cities area is comprised of the cities of Davenport, Iowa; Bettendorf, Iowa; Rock Island, Illinois; Moline, Illinois; and East Moline, Illinois. Davenport is one of the original four cities that made up the region, and Bettendorf was added to the official list in the early 1950s although the community never adjusted the nomenclature (see sidebar for Davenport’s place in the Quad City region and local history). A Long, Slow Resurgence Comes to Fruition Things have not always been so hot in Davenport, however. In fact, after a significant bull run throughout the 1950s and 1960s, the city took a severe economic hit when pivotal employers like International Harvester, John Deere, and, later, Caterpillar scaled back or closed their doors in the area. Although not all of these companies were based in Davenport, specifically, they all operated in the Quad Cities area. This meant that the departures had a direct impact on the population of Davenport. (Investors should note that John Deere is presently the second-largest employer in the Quad City region once more.) Despite concerted and even award-winning efforts to revitalize Davenport, the city floundered until the 1990s, when the area began to achieve recognition for community-development efforts like the River Renaissance project, which, after some initial struggles, brought the Figge Art Museum and the River Music Experience to the formerly struggling downtown Mississippi Riverfront area. The $113.5 million project would ultimately provide a foundation for a thriving downtown area, including upgrades to the historic Adler Theatre and the debut of the Modern Woodmen Baseball Park, the Skybridge, two parking ramps, and a local-business support center. Bill Wilke, who served as chairman for the Downtown Davenport Strategic Plan Community Task Force, recalled trying to “figure out a way to bring some of the vitality back to the downtown that had been siphoned away by years of disinvestment and flight by businesses and workers.” The project ultimately received a $20 million grant from the Vision Iowa Board and massive local support from the residential population and, as a result, from businesses that chose to privately remodel, renovate, and upgrade properties in the area in conjunction with the River Renaissance. One developer, citing the concentration of effort in a small area, opted to invest $3.8 million of private money into an office condo development and another $2.5 million into a venture capital center that would be built nearby. He explained, “$113.5 million in investment: that is a huge amount in a three- or four-block area. It will look instantly different.” The Downtown Davenport Partnership reported once the project was complete, “The River Renaissance amenities served as a major catalyst for the growth downtown Davenport would enjoy in the mid-2000s and into the next decade. The city continues to enact highly effective community planning initiatives; its Davenport in Motion multi-modal transportation master plan is currently set for completion in 2025 and will create a “pedestrian-friendly, urban community where residents can access daily needs and activities by foot, bike, or transit”. “Gold Coin” in Rental Property Davenport’s track record of visualizing and then enacting large-scale, effective community master plans is a positive indicator for real estate investors. The city is clearly dedicated to its own growth and sustainability, and local planners and policymakers have demonstrated the ability to identify productive projects that will add value to properties in the area while attracting new residents. An unusually high number of these residents are likely to be renters, as well,

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