Grand Rapids/Holland Fix and Flipping

9 Replies

Hi,

I am newer to BP and we (my husband and I) are looking to get into real estate investing. My particular interest is in fix and flips rather than renters.  We actually put an offer in on a property and after walking it with my father in law who is a new home builder/remodeler I'm not so sure. I think it has great potential and it seems like the numbers are good even if unexpected things come up, but he recommended not getting into it. I'm not sure if I should proceed with doing a formal inspection (wondering if it's hard to ask opinions of family members and would be better to have a neutral party walk it) or what. I know he has a lot of experience, but I also know this is a lot more distressed than properties he typically works on and I wonder if he is just thrown by that. I don't know how a profit can be made in flipping (especially in our area) unless you do find something that is fairly distressed. Also, if there are any investors in this area to connect with, I would love to do that. We are new at this, but I feel passionate about getting into this area. Anyhow, any thoughts appreciated!  Thanks so much!

@Heather Klompmaker welcome to BP and good luck on the flip.  Does your father-in-law also do any flips or is he mostly on the contracting side?  Also what specific areas is he apprehensive about?  I'm sure he's got a lot of experience thought it would seem useful to have a neutral party inspection.  

Also, while I live in CT now, I'm originally from Michigan (I'm sure the last name gives away my Hollander roots) and there's a good chance we may be back in the Grand Rapids area.  I'd be more than happy to network with you in case we find ourselves working in the same area eventually!

Heather - Welcome to BP.  We own several homes in West Michigan, mostly Grand Rapids.  We have flipped houses from North Muskegon to Wyoming.  I'd be happy to help when I can.  At first I would tell you that if you are new, listen to your Dad.  Flipping houses is exactly like you see on TV (insert sarcastic laugh).  We have made really good money on flips and get caught a couple times.  You don't want to lose on your first project so be picky.  It isn't a great market right now in GR or Holland for flips so be careful.  Muskegon on the other hand is hot!  It is what GR was 3 years ago.  But you have to know your neighborhoods.  

Anyway, good luck!  Let me know if I can help.  

Heather the numbers will tell you everything you need to know, and your father will be able to provide you with the hardest part of the equation which is estimating the rehab.  I and most rehabers target the worst houses, just cosmetic rehabs are too tight and in todays market have lots of home owners competing for them.  Good deals are hard to find today, keep looking, reading, and studying the market.  The best deals are never listed on the mls.  If you need any help please let me know.  There are great resources and networking opertunities in GR, hit up the RPOA to find out about some of them.  Good luck

@Heather Klompmaker , I'm a GC who lives and works in Holland. I believe I know your father and sister (If I have the right Klompmaker...can't be sure around here.) I'd be happy to look at the house and do my best to give a neutral opinion. Contact me if you're interested in talking more.

Thank you all! I am leaning towards walking away, but feel like I need to research it more fully before doing so! My father in law knows basically everything there is to know about remodeling/building so we are inclined to listen to his assessment, but to me it would be helpful to have hard numbers to be sure the numbers truly make it unprofitable. I know that it's a ton of work which was his concern and he was worried that once we get into one area a huge list of other problems would come up. I think getting an actual estimate (which we didn't do) probably would be helpful. @Michael DeYoung , would love to connect with you and get your opinion on the property.

I agree with Justin...the numbers are pretty much all that matters.

@Heather Klompmaker I am a local Grand Rapids realtor-
I work with investors and investment properties.
I have a partner that is a contractor and does flips as well.
If you'd like any help let me know.
God Bless!

@Heather Klompmaker I know this thread is a bit date but I'm curious if you decided to move forward with the house?  I'm new to investing and looking at the Holland/Muskegon/Norton Shores areas for my first deal.  I live in Grand Haven but there just isn't much for sale here!

Originally posted by @Jeff Gebhart :

Heather - Welcome to BP.  We own several homes in West Michigan, mostly Grand Rapids.  We have flipped houses from North Muskegon to Wyoming.  I'd be happy to help when I can.  At first I would tell you that if you are new, listen to your Dad.  Flipping houses is exactly like you see on TV (insert sarcastic laugh).  We have made really good money on flips and get caught a couple times.  You don't want to lose on your first project so be picky.  It isn't a great market right now in GR or Holland for flips so be careful.  Muskegon on the other hand is hot!  It is what GR was 3 years ago.  But you have to know your neighborhoods.  

Anyway, good luck!  Let me know if I can help.  

Jeff - Do you still find the Muskegon market to be considered "hot"? I see a lot of homes listed for under 50k, but my concern is the max ARV on these homes would be 80-90k considering the area. Area there any areas of Muskegon you would stay away from? (such as Muskegon Heights). Any areas that are showing larger returns than others? Thanks!

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