Looking for Best Practices on MF investing in the Midwest

General Real Estate Investing
4yFollow

Looking for Best Practices on MF investing in the Midwest

Ken M.
New to Real Estate · Phoenix, AZ · Member since 2019 · 10 posts · 2 votes

I'm looking to invest in out of state opportunities. I'm considering the midwest because its a market I'm familiar with and I have family and friends still there.

Does anyone have any resources for learning or best practices on investing in midwest properties? I'm mainly concerned with protecting against fall/winter...

Thoughts?

0Reply
15 views

Most Popular Reply

Adam TafelBusiness Member
Real Estate Agent · St. Paul, MN · Member since 2017 · 580 posts · 396 votes
4y

Use an agent and inspector you trust. Get quality video if you won't be present for inspection. IMO a little broad of a question to get much help in the forums, but when you have a property under contract and have specific questions about certain issues/maintenance items re-post and the Midwesterners will chime in our two-cents! 

At least we have no wildfires, hurricanes, earthquakes, etc..... 

Upside Property Sales 4.9108 Reviews
WebsiteView Page
1Reply
See this reply in the discussion

8 Replies

Jump to latestLatest
  • Taylor L.
    Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
    4y

    "The Midwest" refers to a pretty large swath of territory! Which market specifically are you going after?

    0Reply
  • Michael Paling
    Rental Property Investor · Gwinn, MI · Member since 2016 · 174 posts · 103 votes
    4y

    what do you mean by "protecting against fall/winter"? Do you mean protecting against certain aspects of weather? snow load? humidity? flooding? frozen pipes? frost heave/subsidence? 

    1Reply
  • Ken M.
    OP
    New to Real Estate · Phoenix, AZ · Member since 2019 · 10 posts · 2 votes
    4y
    Quote from @Taylor L.:

    "The Midwest" refers to a pretty large swath of territory! Which market specifically are you going after?


     Hi Taylor, thank you for your reply.

    I'm focusing on the areas I live in or have large amounts of family in - Michigan and Minnesota.

    0Reply
  • Ken M.
    OP
    New to Real Estate · Phoenix, AZ · Member since 2019 · 10 posts · 2 votes
    4y
    Quote from @Michael Paling:

    what do you mean by "protecting against fall/winter"? Do you mean protecting against certain aspects of weather? snow load? humidity? flooding? frozen pipes? frost heave/subsidence? 


     Hi Michael,

    I'm specifically focused on heavy rain, large snow fall, and freezing prevention. I'm looking for recommendations beyond normal maintenance and up-keep that can either improve marketability or generate new revenues.

    Recently, I spoke with an investor outside of Minneapolis that bought an empty lot next to an 8-plex of his.  Once he had the lot re-zoned to be part of his property, he installed a geothermal system in the ground and put a small play-park above the in-ground piping.  It's too early to tell if this will provide long term value, but I scoped the area and his 8-plex was located in a largely small SF neighborhood (so his MF property stood out in that respect).

    0Reply
  • Adrian Valdez
    Real Estate Agent · Muskegon MI · Member since 2022 · 10 posts · 2 votes
    4y

    Hey ! I'm an investor myself and a realtor in west Michigan.  Wana touch base and I can tell you what I look out for yo avoid issues.

    0Reply
  • Joe HammelBusiness Member
    Real Estate Agent · Metro Detroit, MI · Member since 2018 · 612 posts · 666 votes
    4y

    I don't find it that difficult. Probably because it's the only thing I know. Somethings I can think of off the top of my head:

    1. "Gutters and grading": water into basement is so common but not a huge deal as long as walls aren't already largely compromised and bowing etc. Best prevention is to keep water away from the foundation so it doesn't freeze/thaw and push inward on the basement walls. So keep gutters clean, have gutter extensions on the the down pipes so water flow out and away from house and there should be a "grade" of dirt from the house doing downward away from house. Example. Dirt should be 4" high next to house. one foot away it's 3" high. 2" away its 2" high. Etc. so water follows this slope away from the house. (don't gravel, water will soak through and sit right along the house, this is what you don't want. you want it to flow away from the house)

    2. make sure roof and all flashing is good. roof leaks are bad lol.

    3.  Mold is pretty common in crawl spaces, attics, and finished basements. 

    Crawl space: have a vapor barrier and ventilation and no standing water (gutters and grading)

    Attics: no roof leaks and ventilation

    Basements: sump pumps are good and keep water away (gutters and grading) I don't love finished basements because you can't see if walls are taking in water. But usually there are signs (or smells) so as long as you have good gutters/grading etc should be fine.

    Mold isn't a deal breaker. If it was 60% of houses wouldn't sell. It's mostly knowing and understanind how to get it cleaned up and implement a solution. Not a big deal.

    4. Driveways/sidewalks settling movement: the freezing and thawing can often times cause concrete to shift. One of the biggest city infractions is "trip hazards". Rather than paying $6k for a new driveway, oftentimes you can just get a cement cone grinder wheel on a 4" grinder and grind down the lip and problem solved for cheap.


    Just some thoughts on the most common things.

    [email protected]248-422-1685
    FIRE Realty Team - Keller Williams5379 Reviews
    WebsiteView Page
    1Reply
  • Adam TafelBusiness Member
    Real Estate Agent · St. Paul, MN · Member since 2017 · 580 posts · 396 votes
    4y

    Use an agent and inspector you trust. Get quality video if you won't be present for inspection. IMO a little broad of a question to get much help in the forums, but when you have a property under contract and have specific questions about certain issues/maintenance items re-post and the Midwesterners will chime in our two-cents! 

    At least we have no wildfires, hurricanes, earthquakes, etc..... 

    Upside Property Sales 4.9108 Reviews
    WebsiteView Page
    1Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    4y

    @Ken M.

    You might want to follow the "Deep Dive" series we're doing on our BiggerPockets blog about Metro Detroit cities, City of Detroit Neighborhoods and comparing Metro Detroit to other hotspots investors usually consider:

    https://www.biggerpockets.com/...

    [email protected]248-209-6824
    Logical Property Management4.9458 Reviews
    WebsiteView Page
    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free