Investing in Indiana and Michigan

Los Angeles, CA · Member since 2018 · 2 posts · 2 votes

I made it a point to buy my first investment property(ies) this year. (Not going to let Corona stop me) I have made up my mind that I will be investing out of state. I am looking at Indiana and Michigan because that is where I grew up and I have people on the ground that I trust to help me (send videos/manage/odd jobs etc) I'm looking through different cities now and still learning the markets. I was wondering if anyone on here is investing in those states and could recommend any specific cities that they think are promising. I am looking at houses up to 100,000. I want it to cashflow from day one. Not afraid of a home that needs some fixing up but not trying to do a huge renovation.I appreciate any helpful tips or insight. Thank you!

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Daniel Guerra

Investor · Greater Chicago Area and Northwest Indiana · Member since 2018 · 138 posts · 42 votes

@Brittany Lewis Best of luck Brittany! Investing in Northwest Indiana is fantastic.

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Soh Tanaka
Property Manager · Lindenhurst, IL · Member since 2016 · 854 posts · 506 votes
6y
Northwest Indiana is a good market. Not only it does cashflow reasonably well, but it has appreciated some also.
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Daniel Guerra
Investor · Greater Chicago Area and Northwest Indiana · Member since 2018 · 138 posts · 42 votes
6y
@Brittany Lewis Best of luck Brittany! Investing in Northwest Indiana is fantastic.
1 Reply
Gary Carver
Realtor · Detroit, MI · Member since 2018 · 387 posts · 129 votes
6y
@Brittany Lewis Hello I’m here in Michigan. I’ve been personally investing here and also helping other out of state/country investors. It’s been great. Many opportunities. It sounds like you got a great plan. I’m here if you want to connect. Good luck
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Jordan Jones
Rental Property Investor · Temecula, CA · Member since 2018 · 34 posts · 21 votes
6y
Hi @Brittany Lewis. I'm in Michigan. I've had really good luck in the downriver communities. Solid blue collar tenants and good cash flow, plus it's been appreciating the last couple of years. It's getting tight but you could probably find something right around your price point in a decent area if you are patient and look really hard. Good luck!
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Mitch SmithPro Member
Developer · San Diego, CA · Member since 2014 · 93 posts · 87 votes
6y
@Brittany Lewis Hey Brittany.
Fellow West Coaster. Welcome to the club of many California investors that have picked the Midwest as a chosen investment location. I began my investment career in San Diego and Los Angeles and quickly discovered that it would take me a lot longer to build the portfolio that I wanted if I continued only doing business here. So I made the decision to live in one of the most expensive markets in the country, and invest in one of the most favorable ones. I've been doing flips, new construction and buy and hold transactions in the Indianapolis market for the last eight years. I have definitely had my fair share of bumps and bruises ,but I have now built an amazing team that helps me in my 15 to 20 new construction and flip transactions per year. I have nothing but great things to say about the market there. Although, prices are significantly higher than they were even 3 year ago. My personal opinion is that the Indianapolis market ,and the five surrounding counties around it, will be strong for the next 20 to 30 years. Feel free to reach out if you have any questions, I'd be happy to help you or answer any questions that you might have.
Good Luck.
Mitch
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Kerry Noble JrPro Member
Investor · Indianapolis, IN · Member since 2018 · 2k+ posts · 1k+ votes
6y
I agree with Mitch, Indy is definitely your place
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Johnny Lau
Investor · San Jose, CA · Member since 2015 · 89 posts · 46 votes
6y
I bought 4 OOS houses about a year ago, 2 in Michigan. One in Detroit and one in a Detroit suburb-Southfield. The cash flow is really good on those 2 houses. Be sure that you find a good team to work with, and make sure the properties have a great property manager. They ultimately make or break your investments.

The Detroit house cost me about 60k all-in (repairs etc) and rents at 1,050/mo. The one in the suburb cost me 75k and rents at 1,000/mo. Both have section 8 renters which I prefer since that program pays me directly and I don’t have to worry about the tenants paying the rent.
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Alora Glaze
Indianapolis · Member since 2019 · 288 posts · 179 votes
6y
Moved from the west coast myself to the midwest market to invest in real estate and make my dollars stretch further. Its great you have connections to assist with the every day - right now, though, while you're looking at the financial aspects and wanting to make sure the numbers work - connect with local REI professionals such as real estate agents, property management teams, and lenders who can help provide insight to the market, as well as what they observe others are doing in the same market also.

The majority of the folks we work with now are out of state and the number one issue is finding the right market for their REI model... and then finding lending... being able to run comps and assess your numbers will be key in making sure you buy successfully. If you're looking for minimal upkeep and minimal reno - I'd probably avoid the central downtown area as you will need to make a heavy investment in those properties to get to that kind of cash flow or the high return you're looking for right away.

Best of luck to you!!
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Dylan TanakaPro Member
Real Estate Agent · Detroit, MI · Member since 2008 · 455 posts · 178 votes
6y
@Brittany Lewis there are many Strong areas in Michigan outside of warzone's that you can buy 2 properties for 100k. Make sure to read on these forums as much as possible and make as many local connections to where you want to invest as you can.
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Dylan TanakaPro Member
Real Estate Agent · Detroit, MI · Member since 2008 · 455 posts · 178 votes
6y
@Soh Tanaka, nice to see another Tanaka. Although my blood is quite watered down, lol.
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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
6y
Make sure you know the difference between Metro Detroit and the City of Detroit.
The city isn't for the faint of heart.
The Ring Cities around Detroit, those that touch the city, offer pretty great opportunites with rent/price ratios well over the 1.0 rule.
[email protected]248-209-6824
Logical Property Management4.9450 Reviews
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