This is my 1st post so hello all! Glad to be here. Mostly, I am curious about the current climate and what others are seeing in, specifically east Grand Rapids, MI but also GR as a whole. I have a duplex that has been open for about 30 days. This seems too long to me.
I purchased the duplex in June. Hired a property manager in July. It needed a little work and I missed the college window. Background, I sold a house in Creston and used a 1031 to purchase the duplex in East GR near Calvin College. The duplex is clean and livable but certainly not new construction. I live in Raleigh, NC but grew up in Kalamazoo and bought in GR because cash flow is better than in Raleigh.
for sure you would think that it shouldn’t take this long, but I too have witnessed some longer times to lease. My problem was that I found tenants, but none that I would want in my house. Part of the problem could be that since there’s such low inventory, people are staying where they are instead of moving. A similar effect as the housing market really. People don’t want to sell as they don’t know whether they can buy!!
How many people have the PM company shown your units to? Are they stating the rents are good or too high? What’s their feedback on it?
If it isn't renting it's the PM company or it's way overpriced. Vacancy rates are at an all-time low in GR.
If you are not getting multiple applicants there must be an issue.
@Ryan Richmond I'm currently finishing a couple renovations in Kalamazoo and have been eyeing the GR market as a potential future area. What class and type of units are they and what is your PM asking for rent / terms?
@Paul Leason I think this is a similar situation. My PM leasing company is showing the property about 10 times a week and receiving ~3-5 apps/ week but none are getting approved. The potential renters are not the financially stable renters we are looking for.
@Jake Thomas you are correct. It has received more attention since the rent has reduced from ~1400 to ~1200. I still have the problem with not finding the best tenants though.
@David Edwards I have a B unit in a B neighborhood. It is a duplex near the intersection of East Paris and 28th st. Basically Kentwood and there are a lot of shops and restaurants near by. GR is a great area for growth. I also have a condo in Kalamazoo off Stadium dr. near 9th st. I grew up in the Kalamazoo area and left during the recession.
I apologize for the delay in my response. I am not a pro so I am doing this in between my regular job and grad school. I took a little more ownership over the past month and made a couple trips up to GR to work on one of the units.
One unit was updated with a standard laminate counter top and new bathroom vanity. The previous countertops in both units were a 1970's salmon pink color. The updated side is a ~1300 sf 4 bed/ 2 bath and rented for $1350.
The other side has been listed for ~3 weeks at $1200. This is about 1200 sf and 3 bed/ 2 bath. I just took it down. I am going to replace the countertops in the kitchen with an LG Himac and have the bathroom countertop refinished. The current appliances are all white but mismatched. I am going to replace with an easy maintenance stainless or black.
So we'll see what happens...
@Ryan Richmond I totally understand the juggling act. Hopefully some minor improvements will help move that unit. I'll likely be looking around that area in the future so I'd love to hear how it goes. Good luck!
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