How's the GR market doing for MFR/cashflow these days?

5 Replies

Hi all,

I grew up about 30 mins southeast of Grand Rapids, and have been away from the area for the last 16 years.  I still have a good friend in the Wyoming area, and I've thought about testing the waters with him to see if he'd be interested in partnering for real estate investing (obviously with him as the boots on the ground).  With that said, this is obviously all theoretical at this point, but I'm curious to know how GR is faring as a place of investment for primarily multi-family properties (2-4 unit residential or even apartment complexes) with a focus on cash flow.

Any insight is appreciated.

Thanks.

Hi Pete, 

Some of the lowest vacancy rates in the country with an very affordable housing market makes Grand Rapids a very strong market for cashflow investing. Inventory is very low though, so it's not like quite like shooting fish in a barrel (like it was a few years ago).  For example, you can find stable duplexes in C areas that rent at $600-$800/unit for low to mid 100's, or $800-$900/unit for mid to high $100's.  Some quadplexes around too. Beyond 2-4 unit properties it gets a little more competitive with limited inventory, mostly traded off-market. Are you looking at 2-4 unit properties, or larger than that?

@Pete Mathias

  There is alot of investors flooding to the area driving up prices but strong trends to support the market has room to grow even more because od job growth, low vacancy, and still very low cost of living and rent rates compared to other metro areas.  Definitely a good area to invest for cashflow, rent growth and appreciation because the marker is still so affordable. I particularly do like Wyoming and Kentwood because of easier rental certs and less capex, but you can get higher rents relative to price in city of gr.

@Mark Krier   Good to know, thanks!  Mostly focused on smaller MFRs at this point, but larger apartment complexes are on the table in the future.

@Casity Kao Seems to be a common story in most places (investors flooding in).

Any common areas on the outskirts of GR becoming popular/hot spots for those looking for cheaper housing, or are prices still low enough that people aren't fleeing to the outskirts quite yet?

Thanks.

@Pete Mathias Wyoming is probably where I would suggest for cheaper housing in relation to the rest of Grand Rapids, and also rental compliance is much easier than City of Grand Rapids. You will also find newer homes in this area which should help on the CAPEX over older homes in City of Grand Rapids. City of Wyoming had a very high millage rate but they have finally turned around and invested it in their schools so I think it's an area that is turning around, especially if you can find something in Wyoming, but Grandville School District which is an excellent school district. All of Kent County is hot right now, but even with that being said it's still super easy to find affordable homes under $100 a square foot which is kind of ridiculous given other markets of comparable size have much more expensive homes.

Hello,  consider going 30 minutes west. Muskegon.  We have more and better opportunities for cash flow. 

Many turnkey sfr and mfr , certified,  occupied, and professionally managed. Check us out.  Ratan

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