Standard cap rates and/or ROIs for SE Michigan

[Bruce Scannell]

Good morning BP nation! With the ultra competitive and high entry costs of Southern California, I've decided to use some of my contacts in southeast Michigan to help me start investing there. I've been looking at a lot of properties and running some baseline numbers and they look more feasible. I'm trying to avoid Detroit, but include areas not to far away. I'm curious, for those currently investing in SFRs, what are your average cap rates and rates of return? It seems like a 10% cap rate is doable, am I missing something? Also, I'm assuming a 10% vacancy rate, does that make sense or has it been higher? Thanks ahead of time and any insight you have is appreciated. Bruce

[Joe Villeneuve]

@Bruce Scannell You're talking about my backyard.  I could give you an in depth analysis of this area, but I think it would reach the limits of this blog space.  Suffice to say I'm getting well over that in the areas I'm investing in.  Not all markets out here are the same.  If you're interested let me know, and I can give you a better "road map" of the area.  It is fantastic though.