Looking for multi family property investments in Michigan

[Uday Anand]

Hi there,

I lived in Michigan for about abt 15 yrs first in Lansing and then in Ann Arbor. Been living in CA for the last 15yrs and actively looking to invest in multi family properties in both those towns. For my first out of state investment I am trying to keep the budget to under $350k and use DSCR. I have been having conversations with PMs and real estate agents local in those cities. I will be visiting MI this week and meeting them in person as well as scope out a few properties. Any insights into investing in MI? Any tips for newbie out of state investors? Any thoughts on multi family vs single family or houses with potential to rent to students?

Will appreciate advices and share my learnings as I go

[Melissa Justice]

@Uday Anand,

Hey! I appreciate you sharing your game plan-it’s clear you’re putting in the legwork: reconnecting with familiar areas, lining up local PMs and agents, and even visiting in person. That’s exactly what more out-of-state investors should be doing.

That said, I want to offer a different perspective, as someone who’s lived in Michigan myself, and suggest you consider pivoting to other markets that may set you up better for long-term success.

While there’s a comfort level with investing where you’ve lived, Michigan isn’t the most landlord-friendly state and that matters more when you’re out-of-state. Here's why I believe it’s worth rethinking:

-Higher property taxes especially when the SEV tax increase kicks in when ownership changes, particularly in cities like Lansing - can kill cash flow and throw off DSCR ratios.

-Ann Arbor is pricey and very tenant- and regulation-heavy (rental caps, zoning hurdles, etc.).

-Aging housing stock means more CapEx risk - and you don't want your first OOS deal turning into a construction project.

F-lat appreciation and slower job/population growth than other markets.

In short, it’s a tougher state to operate in remotely, especially if you're relying on leverage and want predictable performance.

Stronger Alternatives in the Midwest & Southeast:
If you're looking for good cash flow, appreciation upside, DSCR-friendly lending, and easier management from afar, here are some markets worth a closer look:

Midwest:
-Akron & Canton, OH – Affordable entry points, solid cash flow, and increasingly popular with out-of-state investors.
-Memphis, TN – Great rent-to-price ratios, a large renter pool, and landlord-friendly legislation. Plus, lots of DSCR-eligible properties in stable neighborhoods.

Southeast & Texas:
-San Antonio, Houston, Dallas, TX – Booming population growth, no state income tax, very investor-friendly laws, and strong rent demand. Inventory from $260K–$425K moves quickly with 10%+ seller incentives in some cases.
-Ocala & Lakeland, FL – Underrated markets with new construction, great schools, and strong appreciation. Ideal for newer investors needing less CapEx risk.

I totally get the instinct to go back to familiar territory, but your first OOS deal should be about stability, scalability, and setting the tone for everything that follows.

Michigan might feel like home, but there are markets out there that are more investor-friendly, scalable, and growth-oriented, without the tax or regulatory headaches.

Happy to always share more if you're exploring any of the above areas. 

Best of luck!