Pontiac Michigan New Investor

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Pontiac Michigan New Investor

Erin Anderegg
Investor · Romeo, MI · Member since 2021 · 22 posts · 12 votes

Hello BiggerPockets! I am new to the site, have throughly enjoyed several podcasts, and a few webinars and found myself here. I work full time as a physical therapist in southeastern Michigan. I am looking to begin investing in Pontiac, MI in the next few months begining with a single family rental. So far what I have been looking at are 50K-70K homes and they seem to rent between 750-900, depending on the part of town. I welcome any advice you have for a beginner, as well as recommendations from investors regarding specific property management companies for Pontiac. Thanks, and excited to be here!

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Michael McIntosh
Rental Property Investor · Lake Orion, MI · Member since 2017 · 35 posts · 12 votes
5y

Hi @Erin Anderegg,

I currently have for SFRs in Pontiac and am always looking for more. When seeking new opportunities, I'd recommend you have a list of specific things you're looking for and when you find those items - pounce quickly. The market is pretty crazy right now and prices have increased 50% in two years in some areas. That being said, there are always deals to be found but it's up to you to put in the work to find them.

If you're looking for your first rental, have you considered househacking? If I had to start fresh and I didn't already have a family, I would 100% pursue that path. Not sure what stage of life you're in though.  Best of luck to you!

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  • Michael McIntosh
    Rental Property Investor · Lake Orion, MI · Member since 2017 · 35 posts · 12 votes
    5y

    Hi @Erin Anderegg,

    I currently have for SFRs in Pontiac and am always looking for more. When seeking new opportunities, I'd recommend you have a list of specific things you're looking for and when you find those items - pounce quickly. The market is pretty crazy right now and prices have increased 50% in two years in some areas. That being said, there are always deals to be found but it's up to you to put in the work to find them.

    If you're looking for your first rental, have you considered househacking? If I had to start fresh and I didn't already have a family, I would 100% pursue that path. Not sure what stage of life you're in though.  Best of luck to you!

    1Reply
  • John Fider
    Real Estate Agent · Harrisburg, PA · Member since 2020 · 37 posts · 13 votes
    5y

    Nice! I'm a RN myself here in Harrisburg, PA. I used a HELOC on my primary residence to fund my recent townhome deal. Now its a rental with a modest cashflow.

    How will you fund yours? Will you self manage?  Will you consider what @Michael McIntosh suggested which I recommend myself?  If I could do it over, I would definitely try a house hack.

    1Reply
  • Andrew SyriosPro Member
    Moderator
    Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
    5y

    Welcome to BiggerPockets and best of luck investing!

    Podcast Guest on Show #121
    1Reply
  • Dmitriy Fomichenko
    Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    5y

    Welcome to BP @Erin Anderegg ! You have found the right place for a plethora of information on REI.

    Read Beginner’s Guide to help you get started: http://www.biggerpockets.com/r...

    Best of luck!

    1Reply
  • Erin Anderegg
    OP
    Investor · Romeo, MI · Member since 2021 · 22 posts · 12 votes
    5y

    Thank you all for the suggestions and encouragement!

    My husband and I just moved to our first home (also in Pontiac) last summer, and due to our stage of life are hesitant to move again so soon for a house hack. Alternatively I've been considering a HELOC or cash-out refinance on our current home to fund the first deal. Any thoughts on which is best?

    Our strategy prior to discovering real estate investing was to aggressively pay down our current mortgage in a few years. Now I have been thinking about renting it out when the time comes to move later on, but I'm not sure what would be the best approach. If we have it totally paid off, then when the time comes to rent it the cash flow would significantly improve as there would be no mortgage payment. If we refinance, it seems like it would drag out the entire process for much longer. What do you think?

    1Reply
  • Erin Anderegg
    OP
    Investor · Romeo, MI · Member since 2021 · 22 posts · 12 votes
    5y

    Regarding the house hacking suggestion, we have a big dog who is loud and rambunctions and needs a yard. To be honest, I probably would not rent a unit in a multiplex to ourselves. The house would have to be very specific for it to work for us, so it seems like single family is the best approach at this time.

    1Reply
  • Josiah Willis
    Investor · MI · Member since 2020 · 17 posts · 4 votes
    5y

    @Erin Anderegg

    That’s awesome loving to see the interest in the city I grew up in! Right now rents are actually higher than 900 due to...well several factors actually including opportunity zone investment, city improvement, inventory, rent deferral etc. Lease clients are competing in the 1k-1.2k in some areas. Would love to here more about what drew your interest in Pontiac!

    0Reply
  • Chad RockeBusiness Member
    Real Estate Agent · Denver, CO · Member since 2021 · 383 posts · 181 votes
    5y

    Hey @Erin Anderegg!

    Welcome to BiggerPockets! You have hit the JACKPOT of resources for real estate investors. You can literally find answers to all of your questions within the confines of this site. What’s the best way to get started using BiggerPockets?

    1.Subscribe to the BiggerPockets Money and Rookie Podcasts

    2.Attend the FREE WEBINARS

    3.Attend a Meetup in Your Area / virtual meet ups

    4.Purchase the Beginner Books: How to Invest in Real Estate, Set for Life, The House Hacking Strategy

    5.Peruse the forums! Ask questions! Answer Questions! If you are consistent with learning real estate over the next 4-6 months, you’ll be ready to purchase your first (or next) property in NO TIME!

    Good luck,

    [email protected]715-550-1731
    Rocke Real Estate Inc.547 Reviews
    WebsiteView Page
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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    5y

    Welcome to BP!

    Some things to think about:

    1) Paying off a rental - would you rather have your primary or a rental paid off for asset protection? How have you researched if you can writeoff mortgage interest on your primary vs rental?

    2) What is your house worth if sold and what would it currently rent for? What ROI do those numbers lead to and does that ROI work for you? This will be important in determining your property search parameters for a rental. Usually, the numbers for our own house have a terrible ROI because we made an emotional vs logical decision when we bought it. You don't want to do that on a rental purchase!

    3) Theoretically, why couldn't you house hack a duplex with lower & upper flats, and put in the upper lease that they have no access to the backyard?

    4) Check out our blog series about "How to Screen a PMC Better than a Tenant”: https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processes

    What else can we assist you with?

    [email protected]248-209-6824
    Logical Property Management4.9458 Reviews
    WebsiteView Page
    0Reply
  • Darius Kellar
    Real Estate Coach · Member since 2018 · 245 posts · 216 votes
    5y

    6 years ago we were buying pontiac homes in the tax auction for as low as 750.00 bucks and now people are spending six figures in these same neighborhoods. The interesting part is that the rent has not made a jump yet. I remember in 2012 rent was 700-ish I am wondering when the rent will double. My best guess would be after the minimum wage increases. 

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