Questions About the Saginaw / Bay City Market
I want to pick up my first rental property by the end of the year. I'm getting some cash together, which will take a few months, to buy my first SFR; all cash if possible.
I've been scouring Zillow / Trulia and Saginaw and Bay City have caught my eye. I've seen some respectable looking houses for ~25k. A few appeared rent ready, but most needed some work. I'm out of state (CT) but I'm originally from Michigan so investing there has some appeal to me.
At this stage I'm putting together a "punch list" so I can act as soon as I have the money together. What do I need to know about that rental market that isn't obvious on Zillow?
Some more specific questions:
- Which parts of the city should I avoid? I don't mind somewhat rough, I grew up in Flint so I'm not exactly easily intimidated, but I do mind "war zone" and not getting paid on time.
- Even a "rent ready" house is going to need something before I put a tenant in it. My thought was replace any carpet with inexpensive engineered hardwood, make sure the place is well painted, and slap some epoxy on the basement / garage floor and be done with it. Is that the right line of thinking?
- What are some "rules of thumb" when dealing with the mechanicals? I'd much rather replace a furnace / water heater upon acquisition and expect to not have any issues for x years than wonder when a Cap X event is going to happen.
- Any recommendations as to a good property management company?
- For CYA purposes my first impulse is to require tenants to have renters insurance
— if they cause a fire it gives me someone to go after with deeper pockets than a tenant. Would that be a problem in these markets?
Is there anything specific I should do to keep good tenants longer?
I'm sure there is a bunch of questions I don't even know to ask. Anything anyone can add that's about the rental market, maximizing cash-flow, etc. would be welcome even if it's not in my list of questions.
One last question... is there anything specific I should do to improve the house's equity? I do plan to get a mortgage on it and "wash rinse repeat" at a reasonable clip. I'm not looking for a long term appreciation play, just cash flow.
PS. I'm listening to Brandon's book on rental property now.