Real Estate Agent · Sacramento, CA · Member since 2019 · 77 posts · 61 votes
Hey BP!
I'm looking for some advice on investing in Michigan generally, and/or Grand Rapids, MI specifically.
I've successfully completed a few house hacks in California, and am looking into branching out to the Midwest with small to mid multi-family to scale a bit faster. But I feel like I don't know what I don't know when it comes to running numbers in the midwest.
What are costs associated with snow/harsh winters? Do property taxes fluctuate? What are insurance costs like (we've got a lot of local variability around fire insurance for ex.)? I've noticed a lot of multi-family buildings are pre-WWII housing inventory - are there restrictions or issues common with that (historic districts, crazy high utility costs, etc)?
Also, anyone local to Grand Rapids have any advice on investing there? I went to school in Michigan and worked in GR for several years, so I'm fairly familiar with the areas, but not as an investor. And that was more than 10 years ago.
Real Estate Agent · Grand Rapids MI · Member since 2024 · 9 posts · 2 votes
1y
Hey Dan! GR is a great market. I own a single-family home built in 1950 here that I rent out. You do need to pass inspection with the city. I bought it about 9 years ago as a primary residence, which keeps my taxes low. Winter doesn't bring too much extra cost as long as the home doesn't have outdated appliances and has sufficient insulation. There will be some extra costs if you're offering snow removal. Here are some links that might help. Happy to connect if you have any additional questions.
Real Estate Professional · Rockford, MI · Member since 2015 · 301 posts · 138 votes
1y
Dan I would love to help. I have a spreadsheet that I could send you that I use to analyze deals. If you need eyes and ears or want an opinion on a specific property, I am always happy to assist. GR is small, so most properties are within 10 minutes of my office. Send me a message if you want to connect.
Real Estate Agent · Grand Rapids MI · Member since 2024 · 9 posts · 2 votes
1y
Hey Dan! GR is a great market. I own a single-family home built in 1950 here that I rent out. You do need to pass inspection with the city. I bought it about 9 years ago as a primary residence, which keeps my taxes low. Winter doesn't bring too much extra cost as long as the home doesn't have outdated appliances and has sufficient insulation. There will be some extra costs if you're offering snow removal. Here are some links that might help. Happy to connect if you have any additional questions.
Real Estate Agent · Grand Rapids MI · Member since 2024 · 9 posts · 2 votes
1y
Glad I could help! Yes I think estimating 5% would be a good start and then once you know the school district you can get a better idea of what to expect. Happy to look at properties or do video walk throughs. Let me know!
Property Manager · Downers Grove, IL · Member since 2012 · 99 posts · 40 votes
1y
Looks like Tim and Ezekiel have provided a bunch already...
What are costs associated with snow/harsh winters? Nothing over any service you wanted to provide.
Do property taxes fluctuate? This is public info and usually it will change based on seller being there a long time or something like an elderly tax rate.
What are insurance costs like (we've got a lot of local variability around fire insurance for ex.)?
Most ins providers I work with (chicago, FTW indiana areas) are nationwide. Maybe yours is too. But usually for a tenant occupied it's like $90-120 per month
I've noticed a lot of multi-family buildings are pre-WWII housing inventory - are there restrictions or issues common with that (historic districts, crazy high utility costs, etc)?
You'd need to call the local township which I would recommend doing for any LTBH. Opinion, avoid historical districts...