Investor · Lansing, MI · Member since 2021 · 3 posts · 1 vote
Hello everyone! I am new to BP and the Ann Arbor area and am motivated to get started real estate investing with a house hack. After doing some research it has become clear that the Ann Arbor market is much more of an appreciation play than a cash flow play. I am more so interested in a buy and hold property that generates cash flow. Are there certain towns around Ann Arbor that would be more suitable to this goal? From what I have seen, Brighton and Hamburg seem like potential fits. Any resources or contacts for learning more would be much appreciated. Hope everyone has a great week!
Hey Nikolai, I'm from Brighton and I haven't seen many small multi's that make sense for cash flow if that's what you meant by househacking. I just bought a 4 bedroom househack in East Lansing as a fixer and rent by the room to college students. That might be something worth looking into in Ann Arbor for U of M students. But if small multi is what you meant by househack, Ypsilanti might work. Just make sure to do some research on the neighborhood because oftentimes higher cash flow might mean higher crime or more deferred maintenance expenses.
Rental Property Investor · Fowlerville, MI · Member since 2019 · 16 posts · 13 votes
5y
@Nikolai Saporoschetz
Welcome to the area! My fiancé and I are investing and living in Livingston county and surrounding area. My fiancé Is also a realtor. So if you need any help finding the right place, feel free to reach out!
Professional · Canton, MI · Member since 2016 · 296 posts · 230 votes
5y
@Nikolai Saporoschetz hi Nikolai - I think you nailed it. Ann Arbor is an appreciation play and some neighboring areas are better for cash flow. Hamburg is a good spot to keep an eye on - a great fixer just went for $99k a few weeks back.
Hey Nikolai, I'm from Brighton and I haven't seen many small multi's that make sense for cash flow if that's what you meant by househacking. I just bought a 4 bedroom househack in East Lansing as a fixer and rent by the room to college students. That might be something worth looking into in Ann Arbor for U of M students. But if small multi is what you meant by househack, Ypsilanti might work. Just make sure to do some research on the neighborhood because oftentimes higher cash flow might mean higher crime or more deferred maintenance expenses.
Ypsilanti, MI · Member since 2018 · 189 posts · 127 votes
5y
I house hack in Ypsilanti, bought a BRRRR here in 2019 I started occupying in 2020. I haven't seen very many cash flowing properties in this area since the covid bubble started inflating prices. There may be other markets that cash flow better than here currently does.
Investor · Lansing, MI · Member since 2021 · 3 posts · 1 vote
5y
@Mitchell Marvin
Hey Mitchell,
Thanks for the input, I really appreciate it. I think you’re right. I think short of me finding an off market deal in the areas I listed, it will be hard to find a deal that cash flows. I will definitely look into the possibility of doing a similar project to what you are doing. Have a good one.
HI @Nikolai Saporoschetz, curious what you decided on since posting this. I just moved to AA and thinking of investing in units in AA or nearby places. As @Mitchell Marvin mentioned, higher cashflow does sometime mean higher crime rate and you may be stuck with a nasty tenant. I am looking for growth areas with $200K to $300k properties. My strategy has been always be above break even, have the tenant pay for your mortgage.
Ann Arbor, MI · Member since 2015 · 2 posts · 0 votes
5y
If you're willing to get several roommates and rent by the room it could work out in the Ann Arbor area. Especially if you're handy and able to create an extra bedroom or two in the house. I wish I would've done this when I was younger because it's one of the easier ways to start. A lot of the student rentals are six bedroom homes with only 1500 square feet. The landlords turn everything into a bedroom and put egress windows in the basement.
I've been investing in industrial properties in AA with cap rates around 8% and good cash flow. However, it's a lot more difficult to get started in industrial.