Bay City, MI: Hidden Gem for Real Estate Investors? Let's Crunch the Numbers!

[Caleb Raymaker]

Hey BP investors! 👋

I've been researching Bay City, Michigan, and I'm excited to share some potentially lucrative opportunities I've discovered. This often-overlooked city might just be a goldmine for cash flow-focused investors. Let me break it down for you:

Why Bay City is catching my eye: 

1. Incredibly Affordable Entry: Average home prices around $70,000-$80,000. Yes, you read that right!
2. Impressive Rent-to-Price Ratios: Average rents for 3-bed homes are about $800-$900/month, potentially yielding 12-15% gross returns.
3. Economic Transition: While historically industrial, Bay City is diversifying into healthcare, education, and service sectors.
4. Revitalization Efforts: Downtown redevelopment and community initiatives are breathing new life into the city.
5. Strong Cash Flow Potential: Low property taxes and insurance costs contribute to robust monthly cash flows.

1. Let's crunch some numbers on a hypothetical deal:
   

Purchase Price: $75,000 Down Payment (20%): $15,000 Mortgage (4.5% interest, 30-year fixed): $304/month Property Tax: $100/month Insurance: $60/month Estimated Repairs/CapEx: $100/month Property Management (10%): $85/month

Total Monthly Expenses: $649

Potential Rent: $850/month

Estimated Monthly Cash Flow: $201

Cash-on-Cash Return: About 16.08% (not including appreciation or tax benefits)

These are rough estimates, and individual properties will vary. But it illustrates the potential in Bay City.

Key Considerations:

1. Seasonal Tourism: Bay City sees an influx of tourists in summer. Could this be an opportunity for short-term rentals?
2. Flood Zones: Some areas near the river are in flood zones. Always check flood maps and factor in flood insurance if needed.
3. Historic Homes: Bay City has many beautiful historic homes. These can be great investments but may require more maintenance.
4. Job Market: While diversifying, keep an eye on the local job market trends.

Has anyone here invested in Bay City? What's been your experience? Any local insights to share?

I'm particularly interested in hearing about:

• Best performing neighborhoods
• Property management recommendations
• Any challenges specific to this market

Let's discuss and uncover the potential of Bay City together! 🏘️💰

[Brittani Purman]

Caleb, you are absolutely right. Bay City is full of opportunity for those who are savvy enough to navigate it. Though I have to ask where you are finding 4.5% interest rates on investments?

[Travis Biziorek]

Personally, I wouldn't touch it. 

It's a small town (I think 30,000 people) that's likely going to be difficult to find reliable PM's, tradespeople, etc. 

I doubt you see much appreciation over time. For a pure cash flow investor that doesn't care about appreciation it might make sense. But I think it's better for a local investor that is going to be hands on and self-manage.

I'd much rather invest in Detroit where I can get a SFH in the $80,000 - $90,000 range with $1,200/mo rents. The numbers are better, the city is growing and going through major revitalization, and it's a much larger city with name recognition.

[Drew Sygit]

We agree with @Travis Biziorek

Bay City, Saginaw & Flint all have low price points, but little to no growth.

There are better opportunities in Detroit, even Midland (home of Dow Chemical).

[Scott Mac]

Detroit, Tigers, Lions, Pistons, Red Wings, massive Cobo Hall, world famous coney dogs, etc...

[Caleb Raymaker]

Quote from @Travis Biziorek:

Personally, I wouldn't touch it. 

It's a small town (I think 30,000 people) that's likely going to be difficult to find reliable PM's, tradespeople, etc. 

I doubt you see much appreciation over time. For a pure cash flow investor that doesn't care about appreciation it might make sense. But I think it's better for a local investor that is going to be hands on and self-manage.

I'd much rather invest in Detroit where I can get a SFH in the $80,000 - $90,000 range with $1,200/mo rents. The numbers are better, the city is growing and going through major revitalization, and it's a much larger city with name recognition.

Thank you for sharing your valuable insights on Bay City and Detroit. Your perspective on the challenges of smaller markets versus the opportunities in larger, revitalizing cities is well-taken. I appreciate your emphasis on considering factors beyond just initial numbers, such as property management availability and long-term appreciation potential.

Your point about Detroit's attractive price-to-rent ratios and ongoing revitalization is intriguing. Have you invested there yourself? I'd be interested to hear more about your experiences if you have. Your input definitely adds an important dimension to consider when evaluating investment opportunities in different markets.

[Travis Biziorek]

Quote from @Caleb Raymaker:

Quote from @Travis Biziorek:

Personally, I wouldn't touch it. 

It's a small town (I think 30,000 people) that's likely going to be difficult to find reliable PM's, tradespeople, etc. 

I doubt you see much appreciation over time. For a pure cash flow investor that doesn't care about appreciation it might make sense. But I think it's better for a local investor that is going to be hands on and self-manage.

I'd much rather invest in Detroit where I can get a SFH in the $80,000 - $90,000 range with $1,200/mo rents. The numbers are better, the city is growing and going through major revitalization, and it's a much larger city with name recognition.

Thank you for sharing your valuable insights on Bay City and Detroit. Your perspective on the challenges of smaller markets versus the opportunities in larger, revitalizing cities is well-taken. I appreciate your emphasis on considering factors beyond just initial numbers, such as property management availability and long-term appreciation potential.

Your point about Detroit's attractive price-to-rent ratios and ongoing revitalization is intriguing. Have you invested there yourself? I'd be interested to hear more about your experiences if you have. Your input definitely adds an important dimension to consider when evaluating investment opportunities in different markets.

 This reply is clearly ChatGPT/AI garbage.