Questions About the Saginaw / Bay City Market

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Questions About the Saginaw / Bay City Market

Jeff G.Pro Member
Investor · Wethersfield, CT · Member since 2013 · 371 posts · 191 votes

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.

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Tanya H.
Investor · CO · Member since 2011 · 107 posts · 28 votes
10y

Hi @Jeff G. ,

I just bought a couple of houses in Bay City, and got one turned around and rented (Sept 1).  

I had to do a bit of work to the now-rented one - it was quite old and had not been updated much - so I redid all of the plumbing and a lot of the electrical.  New windows, and fresh paint throughout.  The place has beautiful wood floors, and they were in mostly good condition, so I just cleaned them up a little.  

I live in CO, but I've got family in Bay City.  So I thought it was going to be easy to get work done.  Not so.  For such a depressed area of the country, you would think it would be easy to find people to do work and at a reasonable price.  Again, not so.  Everything costs so much more to do than here in CO, and I really cannot tell you why.  The trades people just are not motivated to do any work - it's hard to find someone to even give an estimate.  And then the estimates are so high.  Even non-trades work, for example getting the air ducts cleaned, is 3 and 4 times the cost here in CO.  Why?  It just doesn't make sense.  And the quality is unbelievably bad.  (If you ever need duct cleaning or carpet cleaning - I can tell you who NOT to use).

I'm sorry to sound so negative.  I had really planned on buying a lot more, because I think Bay City really could have a lot going for it.  But wow - the work ethic there is so bad.   So I have to say that I am really reconsidering buying much more there.

There were a few exceptions.  If you need a home inspector, I found a guy who is unbelievably awesome.  Very honest, very reasonable, and just a great guy.  He actually turned into a bit of a handyman for me too, and he is working on building his "rolodex" for better references for the various types of work.  He saw all the trouble I was having, and he really is searching to find reputable contractors for all kinds of workers.  

If you have questions about any areas in Bay City, let me know.  I'm going there again in October, and I think I'll look at a few places, but I think I will avoid anything that needs much work.  I think the value is there, but unless I can find something that I can do most of the work myself (meaning paint, carpet, etc), it's just not worth the headaches right now.  

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  • Account Closed
    Property Manager · Flint, MI · Member since 2016 · 30 posts · 4 votes
    10y

    Here's a couple of resources.  I didn't see any crime mapping feature for the City of Saginaw's police, but I might not have dug deep enough.

    http://www.crimedar.com/saginawtownship-michigan

    http://www.neighborhoodscout.com/mi/saginaw/crime/

    0Reply
  • Jeff G.Pro Member
    OP
    Investor · Wethersfield, CT · Member since 2013 · 371 posts · 191 votes
    10y

    Trulia has an "okay" crime map built in. It's not perfect though.

    0Reply
  • Gabrielle Deyarmond
    Saginaw, MI · Member since 2016 · 38 posts · 10 votes
    10y

    Hello @Jeff G.,

    I am a current Saginaw resident, shoot me a PM or request if you are still looking to invest in these areas. I believe I could help you out with breaking down certain neighborhoods for you and what to expect.

    Good luck!

    0Reply
  • Tanya H.
    Investor · CO · Member since 2011 · 107 posts · 28 votes
    10y

    Hi @Jeff G. ,

    I just bought a couple of houses in Bay City, and got one turned around and rented (Sept 1).  

    I had to do a bit of work to the now-rented one - it was quite old and had not been updated much - so I redid all of the plumbing and a lot of the electrical.  New windows, and fresh paint throughout.  The place has beautiful wood floors, and they were in mostly good condition, so I just cleaned them up a little.  

    I live in CO, but I've got family in Bay City.  So I thought it was going to be easy to get work done.  Not so.  For such a depressed area of the country, you would think it would be easy to find people to do work and at a reasonable price.  Again, not so.  Everything costs so much more to do than here in CO, and I really cannot tell you why.  The trades people just are not motivated to do any work - it's hard to find someone to even give an estimate.  And then the estimates are so high.  Even non-trades work, for example getting the air ducts cleaned, is 3 and 4 times the cost here in CO.  Why?  It just doesn't make sense.  And the quality is unbelievably bad.  (If you ever need duct cleaning or carpet cleaning - I can tell you who NOT to use).

    I'm sorry to sound so negative.  I had really planned on buying a lot more, because I think Bay City really could have a lot going for it.  But wow - the work ethic there is so bad.   So I have to say that I am really reconsidering buying much more there.

    There were a few exceptions.  If you need a home inspector, I found a guy who is unbelievably awesome.  Very honest, very reasonable, and just a great guy.  He actually turned into a bit of a handyman for me too, and he is working on building his "rolodex" for better references for the various types of work.  He saw all the trouble I was having, and he really is searching to find reputable contractors for all kinds of workers.  

    If you have questions about any areas in Bay City, let me know.  I'm going there again in October, and I think I'll look at a few places, but I think I will avoid anything that needs much work.  I think the value is there, but unless I can find something that I can do most of the work myself (meaning paint, carpet, etc), it's just not worth the headaches right now.  

    2Reply
  • Jeff G.Pro Member
    OP
    Investor · Wethersfield, CT · Member since 2013 · 371 posts · 191 votes
    10y

    Wow, @Tanya H. , maybe you're being taken for a ride because you're out of state?

    Bay City is also on my list of potential areas to buy as well. But, I know very little about Bay City, less than I know about Saginaw. What zip codes are good and what areas are bad?

    0Reply
  • Jerry Maxson
    Saginaw, MI · Member since 2015 · 13 posts · 1 vote
    10y

    My dad used to live in Bay City,  so I've spent a quite a bit of time there (not so much recently).  I can say that there are nicer, and less nice areas of the city,  but to my knowledge there aren't really any "war zone" type areas. I think I could probably walk around nearly anywhere in the city at night without being too terrified. At least i used to.  Hope that's helpful. 

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  • Tanya H.
    Investor · CO · Member since 2011 · 107 posts · 28 votes
    10y

    @Jeff G. - I don't know that the issues are due to me being out of state, as my home inspector/GC guy lives right there, along with some relatives who also are working with the contractors for me.  They are all experiencing the same thing.  But maybe if I were there, I might be able to build more beneficial relationships with contractors.  I don't know.  

    As @Jerry Maxson noted, I don't think there really any war zone areas.  The downtown river area is really experiencing a revitalization right now, and there is some great looking condos there.  If you have any questions about some specific areas, just ask.

    1Reply
  • Nicole White
    Saginaw, MI · Member since 2016 · 1 post · 0 votes
    9y

    @Jeff G., I live in the Saginaw area and can give you a hand with investing areas.

    0Reply
  • Lakhwinder SIngh
    Rental Property Investor · Jersey City, NJ · Member since 2013 · 18 posts · 5 votes
    3y

    Hi @Tanya H. Do you know a good contractor who can help out with a rehab in the Saginaw area?

    0Reply
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