Any Michigan Investors ?

Question

Hey Guys and gals- I currently live in Michigan, just starting into this idea of real estate investing and was hoping to get a little insight from other Michigan investors, any tips for certain areas of the state, hot spots, bad spots anything really- Thanks

Connor Anderson · Answer

Hi Bill! .

A few markets I recommend are Grand Rapids, Kalamazoo, Lansing, and Muskegon.

Grand Rapids is rapidly growing but still offers some cash flow and a good chance of appreciation.

Kalamazoo has a good price point and offers cash flow, plus is a growing market because of a number of large employers in the area that are continuing to grow (Stryker, Pfizer, and a number of other manufacturers).

Lansing has a good price point too and offers a lot of cash flow but does not see much growth.

Muskegon has the most affordable prices and the best cash flow, plus the city is doing lots of work to improve the area and the home prices, it is a market I am bullish on over the next 5 years.

Deanna Skelcy · Answer

Hi Bill,  my husband and I live in Michigan north of Detroit and are very new to this.  We currently are about to have 3 SFH properties under contract in Detroit Suburb.  There are many properties but you have to be ready to pounce.  Good luck to you!

Tim VandenToorn · Answer

I am a property manager and investor in Grand Rapids and Muskegon.  Happy to connect if you are ever passing through Grand Rapids. One of the many great things about real estate is there generally areas of opportunity in every town. Small cities or townships within 20-30 minutes of a larger metropolitan often have great investment opportunities. First, determine your target cash on cash return, from there identifying where to purchase should be a lot easier.  Also, identify a property manager in the area unless you plan to self-manage.  Buying in rural areas or small towns can be challenging if you don't have a manager close to handle the day-to-day.

Sean Sloop · Answer

Hey Bill, welcome! I invest in Grand Rapids and Lansing.

Thanks,

Sean

Michael S. · Answer

I would first recommend that you narrow down a specific type of investment that you want to concentrate on like SFR fix and flip, long term rental, small multi, etc.  Once you are specific on the type of property you are looking for, then you can concentrate on location.  Every hot spot is a hot spot for a specific type of investment and in Detroit that can be a matter of two neighboring streets.

Example:

900-1200 sq.ft. brick ranch with at least 2 bedrooms and 1 bathroom, build no earlier than 1950, basement, prefer a garage.  Any condition.  Exit strategy is to fix and hold as a long term rental.

This will help keep an investor from shiny object syndrome and be able for others to help to identify a specific area that is best.

Drew Sygit · Answer

@Bill Russell Metro Detroit offers many options for meeting the 1% Rule and relatively high ROI.

The two most common mistakes we see investors make, over & over again, are:

1) Not understanding and running their own ROI numbers

2) Not having a clear understanding of the type of asset a property is

In our opinion, your best team member should be your Property Management Company (PMC). They have to deal with any property you buy every month until you sell or terminate them. Everyone else on your team will be transaction-based and not really involved after a purchase.

We're in the Metro Detroit area, so you may want to follow our blog here on BP, but at least read the following posts:

Follow our "Deep Dive" series we're doing about Metro Detroit cities and City of Detroit Neighborhoods: https://www.biggerpockets.com/...

How to “Screen a PMC Better than a Tenant”: https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processes

Jeremy Scherer · Answer

@Bill Russell Hi Bill! I live in West Michigan and I have 5 rentals in Grand Rapids. I’m also a Mortgage Loan Originator. I would be happy to chat or help any way I can!

Dave Hutson · Answer

Welcome - My team and I invest in Grand Rapids and Kalamazoo; primarily on small multi-families.

I echo @Connor Anderson's input about the SW Michigan area.  Kalamazoo/Portage will start flourishing more now that Pfizer has developed the COVID vaccine.  The best time to invest was yesterday, the 2nd best time is today.  If the Kazoo/GR markets are of interest to you, please feel free to connect directly with me.  Cheers to your success!

Arsen Atanasovski · Answer

Where are you located Bill? Michigan has only a handful of hot spots, the rest of the state is pretty rural if you ask me, also you can forget about UP no one lives there.....;), j/k, I know there is people there. I invest in Detroit and north suburbs of Detroit.

Wendy Patton · Answer

Sure what can I help with?

Any Michigan Investors ?

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