I recently read that the University of Michigan was voted top in country. Since it is one of areas I'm interested in investing, I was wondering how that would affect real estate values. I realize that housing costs are already quite high there compared to other cities in MI.
Hi Estelle--Yes, housing costs in Ann Arbor are some of the highest in the state, along with Birmingham, Grosse Point, etc. The spring market has been especially hot here, like other popular areas. Properties are selling within 48 hours in most cases. Rents have been rising, as well as the median home cost. Rental properties that house U of M students are quite a bit higher than those in other college towns in Michigan. Some students are paying up to $1200 per room in fraternity houses or one of the many new luxury high-rise student buildings downtown. Investment property homes that rent by the room often sell for 450K to over a million. What else would you like to know?
That is very helpful. I can't think of anything else at the moment.
Hi Estelle Angelinas I agree with Sarah Lorenz, however, there is fierce competition with the well established investors. They are informed of properties before it ever hits the market. In many cases the property never hits the market. My suggestion to you is find a property management company that has there hands in everything. They will be your best resource. Keep in mind to find business from the help of others you'll need to do business, if, you know what I mean.
Best of luck!
Kind of hard to do when you're not there. But I'll try to find a property manager there. I had the opportunity to visit the area when I visited family in Mi, for Christmas.
The surrounding areas are worth a look too: Plymouth, Canton, Saline, Northfield, Chelsea. Ypsilanti has potential too, but watch the neighborhood.
Have been looking into neighboring cities as well. Specifically, Ypsilanti. Any suggestions on property managers in the area?
I just began investing in Ypsilanti. During the buying process we were warned and it proved true that you wanted to avoid being south of Michigan Ave. there is also a college there Eastern Michigan (my target) and it was helpful to be nearby. Very affordable although you feel the property taxes of being in Washtenaw county with Ann Arbor.
If you are looking for an investor realtor, although probably better for a relatively new realtor lookup Vicki Evans.
Thanks for the warning Matt. We are hoping to find something between EMU and U of M. Also, we like the downtown area of Ypsilanti as well. We're aware of the taxes, but hope to set the cost off by putting a larger down payment on the mortgage.
Charles Reinhart Property Mgmt are leading realtor and property Mgmt company..I have used them.
CribSpot is another PM..
Should be able Google up a few ..
Best of luck
Is it easy to rent a house in Plymouth? I am planing to buy a house there and may rent it out after purchasing. Thanks.
@Lily Li It's very easy to rent a house in Plymouth, although it's very difficult to actually buy a house that will meet the 1% rule. Where in Plymouth are you buying?
Hi, Joshua, Thanks for your response. I just start to look for SFH in Canton and Plymouth area. I am new to these areas. Is there any specific areas that you recommend in Canton, or Plymouth? thanks.
Ranking of a university should have no relevance on real estate values. Every university town was the same housing requirements regardless of the universities ranking.
However higher ranked universities will have higher standards and possibly a higher student drop out rate. This may effect mid year vacancies.
I've helped investors secure properties outside of AA. In fact, wrapping up a new deal this week with a BP investor for a 5 unit listed at $139K. AA is an anomaly in and of itself. Prices & taxes are ridiculously high but so are rental rates. However, there are good places to invest outside of AA that do not include Detroit. I know of two good MF in Fowlerville as well. There around if you know what to look for.