New member in Livonia Michigan

New member in Livonia Michigan

New to Real Estate · Livonia, MI · Member since 2013 · 4 posts · 1 vote

Hey Everyone,

Excited to be part of this community.  In the short time I have been a member, I have been able to learn and pick up some great knowledge and insight.  Hope one day i can contribute as much as some of you.

I work from home as a web developer and my wife is a physical therapist.  We are expecting our 2nd child in December and have been thinking of ways to create additional income because we are choosing for her to work 8 days per month (so we can keep her benefits).  We have been educating our selves via some great investing books and learning materials right here on Bigger Pockets!

Currently looking to purchase a rental property in the Ypsilanti and Ann Arbor corridor. Based on our personal understanding and working with a really good realtor in the area, we have determined that a short-term rental situation may be a strong option  (airbnb, homeaway, etc...)

We have so much to learn and are loving it!  Any insight and perspective on the following questions would be great!

1. Any suggestions for lenders that can do a construction loan, then mortgage on a rental property?  We are looking for no more than $200K, have excellent credit, and cash.

2. Does anyone know of a parcel or house in the Ypsi / Ann Arbor corridor? Not listed on the MLS.

3. Would love to hook up with a mentor or like minded investors in the Livonia area.

Have more questions but will ask later in other parts of the forum.

Thank you!

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Rental Property Investor · Ypsilanti, MI · Member since 2016 · 230 posts · 86 votes
10y

one idea is to drive around the areas you like and look for For Sale By Owner. There is one on Pearl street in Ypsi. I agree that the area is expensive, especially the neighborhoods close to UM stadium. I would advise you to keep your options and strategies open.

Best wishes,

Keri

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  • Property Manager · Livonia, MI · Member since 2011 · 4k+ posts · 1k+ votes
    10y

    I don't think air bnb will work very well in ypsi. Maybe I am wrong. 

     Also,  200k total price so the rental?  You'd have to rent it for a lot just to break even. 

    I have 13 or so in livonia and the rest are around us. 

  • Rental Property Investor · Ypsilanti, MI · Member since 2016 · 230 posts · 86 votes
    10y

    one idea is to drive around the areas you like and look for For Sale By Owner. There is one on Pearl street in Ypsi. I agree that the area is expensive, especially the neighborhoods close to UM stadium. I would advise you to keep your options and strategies open.

    Best wishes,

    Keri

  • Ann Arbor, MI · Member since 2008 · 90 posts · 20 votes
    10y

    Hi Ed,

    Its very noble that your intentions are to somehow give back to this community when you are more knowledgeable.  But you don't have to wait!  Just be an honest, fair, respectable landlord and you can give back to your community.  And THEN help us.

    I'm looking for my first deal, too, and in the same area.  I think you may have a hard time finding a stranger to tell you about a property that is not listed but is for sale.  From my very little experience, I've learned that this buisness, like many, is all about relationships.  If you're looking for those "pocket listings" the best place to start is with cultivating a relationship with a local realtor.  They are the ones that have sold and bought property for investors, and will know about soon-to-be-listed properties that can help you out.

    You have cash and good credit, thats great!  Many investors have to be more creative to get into a home and if you can close faster because of cash, or offer better terms to a owner financier (ie, bigger down payment, deferred move out time, whatever) you'll have a leg up.

    And you can develop your own buisnesses web presence when its time!

    Keri gives you good advice.  I got into communication with someone by doing what she suggests.  Do a little searching for how to "drive-for-dollars" its (almost) free marketing.

    Good luck Ed.  Let me know if I can help you out in the future, or if you'd like to bounce any ideas off of me.  I'm not a pro, by any means, but talking things out loud can make a big difference.

    See you out there!

  • Specialist · Ann Arbor, MI · Member since 2016 · 355 posts · 191 votes
    10y

    Short-term rentals can work in Ann Arbor, but proximity to downtown and the stadium are key, and I don't think you can do that for 200K or under. Or is there another niche that you are thinking of tapping that I'm unaware of? I do think that building a rental property might be a good approach, but again, I think that you'll need more than 200K to do that in Ann Arbor where the rents will support the cost of construction. In Ypsilanti, it's more economical to buy existing housing stock, I believe. I think you have interesting ideas--if you'd like to share more, maybe we can brainstorm. Anyway, welcome to BP!

  • New to Real Estate · Livonia, MI · Member since 2013 · 4 posts · 1 vote
    10y

    Thanks everyone for the insight and perspective. Will keep you posted on my REI journey.

  • Real Estate Agent · Saint George, UT · Member since 2016 · 33 posts · 14 votes
    10y

    Hi, I am hoping a few of you are familiar with the Michigan Market and can tell me good cities/towns to purchase long term single family rental properties? or fourplex eightplex properties?  Thank You!

  • Specialist · Ann Arbor, MI · Member since 2016 · 355 posts · 191 votes
    10y

    What class of properties are you interested in?

  • Specialist · Ann Arbor, MI · Member since 2016 · 355 posts · 191 votes
    10y

    @Tanya Smith  What class of properties are you interested in? Any particular parameters?

  • Real Estate Agent · Saint George, UT · Member since 2016 · 33 posts · 14 votes
    10y

    I am not 100 percent on what is best for us yet but maybe a 4plex or 6plex to start. How much does something like this run in a good rental market there? We are not bias to any specific area of Michigan.. As long as it's a good location:) thanks for any info! 

  • Real Estate Agent · Saint George, UT · Member since 2016 · 33 posts · 14 votes
    10y

    sorry, I re read your comment and realized what you meant.. I am wary of older properties so B or A class

  • Specialist · Grand Rapids, MI · Member since 2016 · 1k+ posts · 611 votes
    10y

    @Tanya Smith I am a fan of Grand Rapids because cost of living has not risen nearly as fast as the city is growing.  Good bang for buck and was rated #1 by Forbes in America as best place to raise family in US.

  • Investor · King of Prussia, PA · Member since 2014 · 1k+ posts · 339 votes
    10y

    @Ed Sena welcome to BP! Best/first thing to do is get educated. Read read read! Read books on investing in real estate, listen to the podcasts, attend webinars and stay active on the forums while connecting with other investors in your area and pick a niche. Best of luck!

  • Wholesaler · Utica, MI · Member since 2013 · 133 posts · 36 votes
    10y

    Hi @Ed Sena, welcome!  I'm a full time wholesaler in south east Michigan.  I also work from my home and my wife is an occupational therapist and I am on her insurance :)  Most of the deals that I come across are in oakland, macomb and wayne county.  I do know someone in the ann arbor and ypsi area though when you're ready to start looking at places.  If there's anything else I can do to help feel free to PM any time!

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