Muskegon, MI rental market

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Muskegon, MI rental market

Scott Passman
Rental Property Investor · Batavia, IL · Member since 2018 · 452 posts · 672 votes

Muskegon looks to be turning things around over the last several years with some interesting new economic development plans in the works. Anyone investing in Muskegon willing to share their experiences regarding tenant quality, vacancies, and overall direction of the rental market?  I have been looking in Grand Rapids for a while, but considering I'm purely investing for buy-and-hold cash flow right now Muskegon appears to be a better option considering it is a less heated market and I can likely get properties cash flowing at the same rate for 60-70% of the price of Grand Rapids properties.

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Account Closed
Rental Property Investor · grand rapids · Member since 2017 · 28 posts · 24 votes
7y

We have 5 unites in Muskegon - my opinion is it's good but requires street by street research. Most areas differ by neighborhood, Muskegon differs by street. I live in Chicago and have had to travel there quite a few time to feel comfortable with what I'm buying - happy to catch-up anytime

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  • Clarence Johnson
    Real Estate Agent · Inglewood, CA · Member since 2015 · 295 posts · 150 votes
    7y

    I have the same interest, my aunt recently moved there and I hear great things about its investment potential.

    1Reply
  • Randy CharboneauBusiness Member
    Residential Real Estate Broker · Grandville, MI · Member since 2016 · 109 posts · 78 votes
    7y

    Yes, Muskegon is a great market to target right now.  West Michigan is a very hot market with next to nothing in unemployment and lots of job creation on the way.  Grand Rapids is saturated with very low housing inventory right now and Muskegon is one of the next logical places for rapid expansion.  Its been historically depressed but growing now with economic development it hasn't seen in decades.  Let me know if I can help you achieve your goals in that area.  I work that market as well as the Grand Rapids area so I'm familiar with the challenges and opportunities in both.

    [email protected]616-262-0001
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    2Reply
  • Scott Passman
    OP
    Rental Property Investor · Batavia, IL · Member since 2018 · 452 posts · 672 votes
    7y

    @Randy Charboneau Thanks for the reply Randy! I would love to learn a little more about some of the challenges you mention. From previous posts, I have heard the city can be quite difficult to deal with and there is/was some shady behaviors costing investors a lot of time/money and headaches.  Would you agree with this?

    0Reply
  • Randy CharboneauBusiness Member
    Residential Real Estate Broker · Grandville, MI · Member since 2016 · 109 posts · 78 votes
    7y

    Muskegon has had its challenges to be sure.  I can't speak to the past very favorably, but I can tell you that the future is looking bright for sure.  It's always been a very divided community between the "haves" and "have-nots" but West Michigan's growth and demand is changing all of that.  It has some of the most beautiful lake front in the entire mid-west and very cheap real estate right now with economic growth planned, so this is really the definition of "getting in on the ground floor" when many savvy investors make a killing.

    [email protected]616-262-0001
    INDEPENDENCE REALTY512 Reviews
    WebsiteView Page
    0Reply
  • Account Closed
    Rental Property Investor · grand rapids · Member since 2017 · 28 posts · 24 votes
    7y

    We have 5 unites in Muskegon - my opinion is it's good but requires street by street research. Most areas differ by neighborhood, Muskegon differs by street. I live in Chicago and have had to travel there quite a few time to feel comfortable with what I'm buying - happy to catch-up anytime

    3Reply
  • Tejveer Singh
    Member since 2019 · 2 posts · 0 votes
    6y

    @ Nathan W. What would you say is tenant quality in Muskegon?? That is my biggest concern as whilst houses are cheap, it is not necessarily an area which has the highest socioeconomic standing. 

    Which parts of Muskegon do you focus on??

    0Reply
  • Charles Kao
    Specialist · Grand Rapids, MI · Member since 2016 · 1k+ posts · 611 votes
    6y

    @Scott Passman Muskegon is a renters market. Tenant quality and financing can be difficult on homes that cheap but I know many investors that have done well there. We sold 35 properties there last month and majority of buyers bought 3-6 properties at a time

    for between 22-35 a unit on average. If you get a solid renter not hard to get a 20-30 percent cash on cash return.

    1Reply
  • Tejveer Singh
    Member since 2019 · 2 posts · 0 votes
    6y

    @Charles Kao do you work as a buyers agent? I’m interested in purchasing a single family in Norton Shores, Roosevelt Park or Grand Haven. Suggest we can connect separately?

    0Reply
  • Kase Knochenhauer
    Rental Property Investor · Grand Haven, MI · Member since 2015 · 150 posts · 127 votes
    6y

    @Tejveer Singh - @Charles Kao, is a local agent and knows the Muskegon area well. I believe that he works with buyers but am not 100% sure. :) Charles? At the least, you could request to be added to his wholesale buyers list.

    If you find that he doesn't, feel free to touch base with my team and we'd love to serve you. :)

    1Reply
  • Charles Kao
    Specialist · Grand Rapids, MI · Member since 2016 · 1k+ posts · 611 votes
    6y

    @Tejveer Singh Well Grand Haven and Muskegon are completely different areas. While close you couldn't have picked two more different markets. What made you settle on those 3 areas?

    1Reply
  • Nathan Crumback
    Grand Rapids, MI · Member since 2017 · 35 posts · 50 votes
    6y

    @Charles Kao, I'm a local investor based in G.R. but looking at the Muskegon market. I went to a meet up last week and would be interested to hear your take on Muskegon Heights. It seems all the focus is on Muskegon and Muskegon Heights has a lot of needed TLC and potential deals but what are the Heights worth the risk? 

    2Reply
  • Nathan Crumback
    Grand Rapids, MI · Member since 2017 · 35 posts · 50 votes
    6y

    @Charles Kao thanks for the detailed response! I’ve heard some other investors mention the same issue with the inspectors. I’ll keep that in mind when looking at properties.

    0Reply
  • Clarence Johnson
    Real Estate Agent · Inglewood, CA · Member since 2015 · 295 posts · 150 votes
    6y

    @Charles Kao what exactly is a rental cert inspector.

    Thanks

    0Reply
  • Charles Kao
    Specialist · Grand Rapids, MI · Member since 2016 · 1k+ posts · 611 votes
    6y

    @Clarence Johnson The inspector that decides on whether property is compliant with rental code. Need to have a rental certification to rent a property

    0Reply
  • Brandon Koster
    Member since 2016 · 31 posts · 50 votes
    5y

    I drove for dollars in Muskegon today and was very impressed.  It is much nicer than it was a few years ago; they have some nice momentum going.  I plan to focus my future efforts out that way.  As more money and remote workers pour into GR over the next year, renters will be to be willing to commute 40 min for affordability.  I think we are close to an inflection point.

    0Reply
  • Todd Bowen
    Rental Property Investor · Spring Lake, MI · Member since 2017 · 48 posts · 23 votes
    5y

    @Brandon Koster I agree with you! Muskegon is on a great path. Let me know if I can help you Brandon. Good luck.

    2Reply
  • Brandon Koster
    Member since 2016 · 31 posts · 50 votes
    5y

    Thanks Todd! 

    We actually just put a deal under contract in the city of Muskegon.  For management I have reached out to Westshore, Lighthouse, and United Properties and Westshore is the only one that has responded promptly.

    Anyone else have any insights on getting good management in Muskegon?

    1Reply
  • Todd Bowen
    Rental Property Investor · Spring Lake, MI · Member since 2017 · 48 posts · 23 votes
    5y

    @Brandon Koster I currently use Lighthouse for a few units and self-manage several others but would be curious what United has to say...

    1Reply
  • Brandon Koster
    Member since 2016 · 31 posts · 50 votes
    5y

    @Todd Bowen - I went with Lighthouse and they have been great!  I am still curious about United, but I will be using Lighthouse in Muskegon in the long term unless something big changes.

    0Reply
  • Brandon Koster
    Member since 2016 · 31 posts · 50 votes
    5y

    We are super happy with the deal we just bought in Muskegon. Bought for 73K, rented for $1,025. Mortgage including tax and insurance is less than half of rent. Property was just renovated, all new plumbing and mechanicals, no work for us at all. Works out to 20% true cash on cash ROI.


    I plan to keep buying deals like this in MKG as long as they are out there!!!

    1Reply
  • Todd Bowen
    Rental Property Investor · Spring Lake, MI · Member since 2017 · 48 posts · 23 votes
    5y

    @Brandon Koster nice work! Congratulations! On market or off market?

    0Reply
  • Brandon Koster
    Member since 2016 · 31 posts · 50 votes
    5y

    Found it on the MLS a few months ago. I am trying to build a network to better find off market deals but it is taking some time - I think it will come if I am patient.

    1Reply
  • Teodoro Vecchio
    Grand Rapids, MI · Member since 2021 · 7 posts · 10 votes
    5y

    @Brandon Koster

    0Reply
  • Teodoro Vecchio
    Grand Rapids, MI · Member since 2021 · 7 posts · 10 votes
    5y

    @Brandon Koster

    Hi, I’m a new investor looking in the Muskegon market. What are the neighborhoods you look to invest in and which ones do you avoid? I appreciate the insight in advance!

    0Reply
  • Tabitha L. Cox
    Realtor · Montague, MI · Member since 2021 · 15 posts · 11 votes
    5y

    @Brandon Koster what area of Muskegon was it in?

    0Reply
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