First time making rental in Warren, Michigan. Any advice?

Warren, Michigan
Short-Term & Vacation Rental Discussions
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First time making rental in Warren, Michigan. Any advice?

Danny Van
Member since 2024 · 7 posts · 1 vote

Hey guys,

I live in Warren, Michigan. I am looking to make my home a rental within the next year. I wanted to reach out to see if anyone had any advice, strategies, etc. on my first-time rental in Michigan. I know of some strategies such as Section 8, Corporate housing, etc. Was hoping for some feedback.

Thank you!

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Michael SmytheBusiness Member
Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
2y

@Danny Van you can also attend Oakland REIA and MREI, both held monthly in Troy.

Regarding what to do, first you'll need to call the City and get their rental application to fill out, pay the fee, submit and schedule the inspection.

It's mostly a health & safety inspection: smoke detectors, a CO detector near furnace, handrails, GFCI's. etc.

WARNING: Warren doesn't really like landlords, so they can be picky about previous work done without permits - even if it was done before you bought the property! They can red tag it and require all 5 inspections to get a Certificate of Occupancy.  We're handling two of these for owners right now, one just passed final inspection, the other they came up with their 3rd set of repairs:(

If your home is north of 10 Mile, your rent should be too high to qualify for S8. South of 10 Mile, it depends on several other factors. FYI: if you've lived in the home you probably do NOT want a S8 tenant as they tend to be harder on properties than cash tenants (our opinion).

Corporate housing would be Mid-Term Rental (MTR) and you'd need to furnish the home. Can be more profitable than LTR if you can streamline the MTR & STR process.

PM us with any other questions:)

Logical Property Management4.9464 Reviews
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  • Sarah KensingerPro Member
    Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
    2y

    Depends on what type of rental you're looking to do. Corporate housing is more Mid-term rental, section 8 is a long-term rental, and Airbnb is a Short-term rental. So, it all depends on what you're thinking is a good fit for the area and for you.

    [email protected]330-557-3021
    1Reply
  • Travis Biziorek
    Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
    2y

    Danny, my best advice is to hit the Renegade Detroit Investors meetup. I believe it's monthly, and they held it last night. Lots of great folks there in all stages of their investing that would be able to give you some great local advice.

    1Reply
  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    2y

    @Danny Van you can also attend Oakland REIA and MREI, both held monthly in Troy.

    Regarding what to do, first you'll need to call the City and get their rental application to fill out, pay the fee, submit and schedule the inspection.

    It's mostly a health & safety inspection: smoke detectors, a CO detector near furnace, handrails, GFCI's. etc.

    WARNING: Warren doesn't really like landlords, so they can be picky about previous work done without permits - even if it was done before you bought the property! They can red tag it and require all 5 inspections to get a Certificate of Occupancy.  We're handling two of these for owners right now, one just passed final inspection, the other they came up with their 3rd set of repairs:(

    If your home is north of 10 Mile, your rent should be too high to qualify for S8. South of 10 Mile, it depends on several other factors. FYI: if you've lived in the home you probably do NOT want a S8 tenant as they tend to be harder on properties than cash tenants (our opinion).

    Corporate housing would be Mid-Term Rental (MTR) and you'd need to furnish the home. Can be more profitable than LTR if you can streamline the MTR & STR process.

    PM us with any other questions:)

    Logical Property Management4.9464 Reviews
    WebsiteView Page
    2Reply
  • Bonnie LowPro Member
    Lender · Asheville, NC · Member since 2016 · 1k+ posts · 1k+ votes
    2y

    It sounds like you need to evaluate your property and narrow down what it would be best suited for. Often, a property can serve more than one niche, but rarely can it serve two that are as different as Section 8 and corporate housing so I assume you just threw those out as examples. Your location, property configuration and area demographics will tell you a lot about what you should be targeting. If you share some details on those things here, people can help you start to narrow it down.

    [email protected]
    0Reply
  • Danny Van
    OP
    Member since 2024 · 7 posts · 1 vote
    2y

    Hello Bonnie,

    I appreciate your response. 

    I am north of a major freeway, so easy access to different areas in metro Detroit. I am also 5 minutes away from the automotive company GM Headquarters and 5 minutes away from a major hospital. I have 3 beds 1.5 baths in a bungalow style home on a fairly tight dead-end road. I believe my target demographic would possibly be a Healthcare worker or possibly an engineer working on a contract. 

    0Reply
  • Danny Van
    OP
    Member since 2024 · 7 posts · 1 vote
    2y
    Quote from @Sarah Kensinger:

    Depends on what type of rental you're looking to do. Corporate housing is more Mid-term rental, section 8 is a long-term rental, and Airbnb is a Short-term rental. So, it all depends on what you're thinking is a good fit for the area and for you.


     Hi Sarah,

    Thank you for you response!

    I am looking to do short and/or mid-term rentals. I was looking at Air BnB but I am not sure if my property would be profitable. However, I am north of a major freeway, so easy access to different areas in metro Detroit. I am also 5 minutes away from the automotive company GM Headquarters and 5 minutes away from a major hospital. Also, 20 minutes away from Downtown Detroit.

    0Reply
  • Dave Skow
    Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
    2y

    @Danny Van- thanks 1) if you have some equity in the property - you might consider getting a HELOC in place now in case you want to use any equity in the future ...Its easier to get a heloc in place on a primary home as compared to a rental 2) contact your insurance agent and ask for an estimate for how the insurance coverage and premium will change 3) consider a proeprty management firm if you dont want to self manage 4) get any forms and processes in place ( leases / credit checks / bank accounts/ etc ....)

    0Reply
  • Danny Van
    OP
    Member since 2024 · 7 posts · 1 vote
    2y
    Quote from @Michael Smythe:

    @Danny Van you can also attend Oakland REIA and MREI, both held monthly in Troy.

    Regarding what to do, first you'll need to call the City and get their rental application to fill out, pay the fee, submit and schedule the inspection.

    It's mostly a health & safety inspection: smoke detectors, a CO detector near furnace, handrails, GFCI's. etc.

    WARNING: Warren doesn't really like landlords, so they can be picky about previous work done without permits - even if it was done before you bought the property! They can red tag it and require all 5 inspections to get a Certificate of Occupancy.  We're handling two of these for owners right now, one just passed final inspection, the other they came up with their 3rd set of repairs:(

    If your home is north of 10 Mile, your rent should be too high to qualify for S8. South of 10 Mile, it depends on several other factors. FYI: if you've lived in the home you probably do NOT want a S8 tenant as they tend to be harder on properties than cash tenants (our opinion).

    Corporate housing would be Mid-Term Rental (MTR) and you'd need to furnish the home. Can be more profitable than LTR if you can streamline the MTR & STR process.

    PM us with any other questions:)


     Hi Michael,

    Thank you for your response! 

    1. Would I also have to get it registered/ licensed through the state too or just the city application like you were stating?

    2. Would I need to contact my mortgage lender to let them know it will be an investment property?

    3. Would I need both homeowners' insurance and Landlord insurance or just the landlord?

    0Reply
  • Owen RosenBusiness Member
    Professional · Clinton Township, MI · Member since 2015 · 691 posts · 260 votes
    2y
    Quote from @Danny Van:
    Quote from @Michael Smythe:

    @Danny Van you can also attend Oakland REIA and MREI, both held monthly in Troy.

    Regarding what to do, first you'll need to call the City and get their rental application to fill out, pay the fee, submit and schedule the inspection.

    It's mostly a health & safety inspection: smoke detectors, a CO detector near furnace, handrails, GFCI's. etc.

    WARNING: Warren doesn't really like landlords, so they can be picky about previous work done without permits - even if it was done before you bought the property! They can red tag it and require all 5 inspections to get a Certificate of Occupancy.  We're handling two of these for owners right now, one just passed final inspection, the other they came up with their 3rd set of repairs:(

    If your home is north of 10 Mile, your rent should be too high to qualify for S8. South of 10 Mile, it depends on several other factors. FYI: if you've lived in the home you probably do NOT want a S8 tenant as they tend to be harder on properties than cash tenants (our opinion).

    Corporate housing would be Mid-Term Rental (MTR) and you'd need to furnish the home. Can be more profitable than LTR if you can streamline the MTR & STR process.

    PM us with any other questions:)


     Hi Michael,

    Thank you for your response! 

    1. Would I also have to get it registered/ licensed through the state too or just the city application like you were stating?

    2. Would I need to contact my mortgage lender to let them know it will be an investment property?

    3. Would I need both homeowners' insurance and Landlord insurance or just the landlord?


     You'll only have one type of insurance on the property at a time.  While owner occupied and then once it's tenant occupied.

    Royal Oath Insurance Group4.9208 Reviews
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    0Reply
  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    2y

    @Danny Van
    1) No state requirements

    2) Most mortgages only require borrower to owner-occupy property for first 12 months of loan. No restrictions after that.

    3) Depends on insurer. Some add landlord rider, MOST do different policy. You also NEED to ask if your policy will remain in effect if property vacant for more than 30 days.

    Logical Property Management4.9464 Reviews
    WebsiteView Page
    0Reply
  • Danny Van
    OP
    Member since 2024 · 7 posts · 1 vote
    2y
    Quote from @Michael Smythe:

    @Danny Van
    1) No state requirements

    2) Most mortgages only require borrower to owner-occupy property for first 12 months of loan. No restrictions after that.

    3) Depends on insurer. Some add landlord rider, MOST do different policy. You also NEED to ask if your policy will remain in effect if property vacant for more than 30 days.


     Thank you for your response Michael!

    In regard to the mortgage, so nothing will change when it comes to the mortgage when I notify them it will be a rental? They just change the name of it and require 12 months of occupancy? 

    0Reply
  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    2y

    @Danny Van change the name of what?

    Logical Property Management4.9464 Reviews
    WebsiteView Page
    0Reply
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