Muskegon Investors! What has your experience been?
Hi there!
I'm an investor living Oakland, CA where I own 2-3BR units and am originally from Grand Rapids, MI where I recently purchased a studio/3BR duplex.
I'm excited to be investing my money back home, but the huge influx of cash buyers here and the quickly saturating market has made finding quality buy and hold deals in GR a difficult prospect. I am lucky to have found the duplex I just bought, but I'm not expecting to see many more like it.
That being said, I've decided to branch out in my search and take a look at Muskegon. I grew up coming to Muskegon to visit my aunt and uncle and remember how pocket-y the city has always been. The neighborhood they lived in was A/B near Mona Shores, but I remember how someone could walk just a couple blocks in the wrong direction and end up in what might be described as "desolated suburban wasteland" :(
My questions for those who are active or are considering becoming active investors in the Muskegon area:
1) Why should a real estate investor like myself take a bet on Muskegon right now? The mills and the factories have long since closed their doors, and in my (admittedly cursory) research I haven't seen any plans for industry to return. There will always be people paying to live close to the lake, but what about the homes in the rest of the city? What might bring some life back there?
2) Which neighborhoods have you focused on? I know enough to stay out of the Heights, but are there other places where people are flocking to (or away) from?
About me: My strategy is for B/Hs with 15%+ COCR and I don't mind if a property requires some work to get there. I don't want to wait on the phantom of appreciation to make my money.