First out of state investment in MI - help with overanalyzing!
HI All,
I would love some feedback here as I am working on my first out of state investment in Michigan and trying not to over think things.
I am using a local property manager, who I met and is awesome, and made an offer on a house that he has been managing and another investor is off loading. There is a tenant in there that wants to stay, and we will work on raising their rent (my first time dealing with Section 8). I actually drove and went to the walk thru and was there with the inspector. This is on the west side of Grand Rapids which is appreciating greatly, and will cash flow on day 1 but the house is a bit older and some items were found that I had not dealt with in the past.
(Potential termite issues in the past, rodent feces in the attic, some support issues in the basement) but according to the inspector nothing glaring and the building won't fall down - I legit asked that. ;-)
I feel like this could be a great mini BRRR opportunity, where I can go in and do what fixes I can while the current tenant is in there - make sure they are happy and stay as long as possible - and then when there is a turn go in and do the other major fixes and do a new appraisal at that time.
Has anyone taken over a lease with a current tenant in there and been able to succesfully raise rents to match market rates?
Is proper and ongoing termite treatment a good way to help control future issues?
Anyone else in the Grand Rapids market?
Thanks all!
K-Man