All Forum Posts by: Jacob Joye

Hey everyone, 

My wife and I currently live in a beautiful 3 bed 3 bath 1800 sq feet recently renovated home in Troy, MI and are looking to move out and treat it as our first rental property. We are debating whether to make it a MTR vs LTR as I have seen in research that MTRs have possibility to be more profitable and we live 5 minutes away from a 600 bed level 2 hospital, 15 minutes from a level 3 hospital, and 22 minutes from a 1000 bed level 1 hospital.

Does anyone have general or specific recommendations? Anyone with experience here locally in Michigan with MTRs and the pros/cons versus finding a more traditional 2-3 year long term tenant?

Thanks,

Quote from @Tim VandenToorn:

The margins are thin especially if you need to hire a manager.  Many managers in northern Michigan charge 25-30% for management.  I had a 3-bed house in Boyne City 5 minutes from the ski hill and a short walk to the water.  I did around 30k annually.  I sold it this year for over $400,000. 

Wow, the that’s helpful information thank you. So from your experience would you say buy and hold long term/ medium term with focus on appreciation is the best focal point now and for the near future (atleast as far as Northern/ Western MI goes)?

I know there are many voicing different opinions on STRs for 2024… most agreeing the margins are dwindling and the market is over saturated.

Perhaps we will shift gears and look to invest into multi-family homes in metro Detroit area instead. 

Thanks for chatting!

Quote from @Nathan M kiefer:

Quote from @Jacob Joye:

Quote from @Nathan M kiefer:

Need specifics but our 2 bed 1 bath lake house in mid mi does around 25-30k per year

Thanks for the response Nathan. I am looking at similar size single family homes in the north west area around 250k… essentially I am just trying to get a grasp of what to expect year one- if there is actually some profit to be made and supplement or if is more likely to be near a wash. I understand it’s a vague question. I’m new and learning a lot. Thanks for your response!

In that area with similar set up your going to be In a range of 35-50k depending on fit and finish and exact location 

& you’re talking about $35-50k profit? After expenses?

Quote from @Trent Reeve:

look at Rabbu and awning, then also do the Enemy Method analysis. but as has been mentioned, need more information to give an estimate. my sister has a lakeside house in the UP near Manistique.

Okay great thank you I’m not familiar with the Enemy Method so that’s super helpful in and of itself.

Looking for a 200-250k single family getaway near Boyne Mountain or Knubs Knob

Quote from @Nathan M kiefer:

Need specifics but our 2 bed 1 bath lake house in mid mi does around 25-30k per year

Thanks for the response Nathan. I am looking at similar size single family homes in the north west area around 250k… essentially I am just trying to get a grasp of what to expect year one- if there is actually some profit to be made and supplement or if is more likely to be near a wash. I understand it’s a vague question. I’m new and learning a lot. Thanks for your response!

Hey everyone, 

My wife and I are looking into the purchase of our very first STR here in Michigan. Thinking we will cater toward the Ski (winter) / Golf (summer) crowd on the North/West side of the state…

My question for each of you is this— what did your first and second year revenue look like for your first STR?

I am aware the outcomes widely vary— However, I would like to gather as much first hand information and testimonial as to what it looked like for you all individually in the Bigger Pockets community.

Thanks!