Good places for second property in Southeast MI?

Question

Looking at Buy and Hold # 2.  Southeast Michigan market.

The area's I'm most interested are St. Claire Shores, Grosse Pointe, etc.  I am looking for another 3 and 1 SFR.  Mostly I want to stay away from Roseville, Eastpointe, etc..   I really like certain areas of Warren, which is where property #1 is.

I really just don't know much about those areas I listed above, (i.e. The shores, Grosse Pointe Woods/Farms etc..

Andrew Halbert · Answer

Sarkis,

There are pockets in 48089, 48092 that have very good neighborhoods, however 2 blocks away is a different story.  48088 is SOLID.  I have under contract right now in 48089, but only because I drove the area and saw things first hand.  I had peace with that property.  Some parts of Roseville, Eastpointe, SE Warren are just plain aweful, some are pretty decent with good Cashflow numbers.  I do not think these are areas to purchase if your exit strategy or long term goals depends on appreciation.  It's a saying in SE michigan that 696 is the border between "rich get richer, poor get poorer".  It's true in some respects.

Sarkis Vartanian · Answer

Hi,

Can anyone assist with zip codes in these areas that would be worthwhile investment properties where the numbers would make sense.

Thanks

Marvin Rice · Answer

I have lived in the Pointes for the last 6 years.  The houses go full retail here unless you get an auction property.  The schools are top 2% in the country and demand is very high here so if you can get a deal it will rent or sell fast.  All of the listings are handled by a few agents and they almost always get 6%. You can get $1800 a month on a 3bd 1.5 bth 1500 sq-ft house in the Farms, GP City,and Shores (if you can rent there).  Rents are lower in GP Park and GP Woods.  GP Park has the most rentals with a lot of multi-families.

St. Clair Shores look pretty attractive for investment.  The area seems to be in demand but they still have purchase deals with some upside.  I am interested in looking there for houses because I need a lower entry point right now...

Tim Puffer · Answer

Andrew,

I recently talked to someone who is an agent in the shores area that said homes going within 7 days over in the shores area. If you can find a flip there it may bode well for you. I just moved from SE Michigan to Lansing. If I were still over there I'd be looking at places in Brighton and Howell. The SE is expanding that way.