All Forum Posts by: Nate Miersma

Hello West Michigan Crew,

I'm thinking about selling my 11-unit rental portfolio. Three properties (4-unit, 4-unit, 2-unit) have shared parking and property lines, and the last is a SFR about 10 minutes from there that has very stable long-term renters who will be there for at least 3-4 more years until their daughters graduate high school. They're all profitable and doing well, but unfortunately they can't be a priority for me right now with three little ones at home and a very busy job.

All of these properties are in good areas of town- no ghetto, near WMU and Kalamazoo College campuses and the social areas in downtowns Kzoo. I have more than 70% professional renters, not all students, and have put about $80k into improvements in the last year. 

If anyone is interested in hearing more about them please shoot me a note and I can share the details. 

Or, shoot me a note to tell me I'm crazy and that I shouldn't sell them...

For Sale:

Four-property rental portfolio in Southwest Michigan (Kalamazoo) in the Western Michigan University and Kalamazoo College market. Western Michigan University just opened a Medical School a few blocks from these properties two years ago, and announced in 2016 the intention to open a brand new law school nearby as well - rental demand in this already high demand market is anticipated to continue to increase in the coming years!

Three multi-family properties are located together, with shared parking and trash, consisting of two 4-units and one 2-unit. One of the four-units is all one-bedrooms (currently in highest demand in Kalamazoo), the second four-unit is a huge property with all two-bedrooms, and the third is a 2-unit with a two-bedroom unit downstairs and a one-bedroom unit upstairs. These properties are currently rented by approximately 75% young professionals and 25% college students.

The single family property is located 5 minutes north in the quiet town of Parchment less than 100 yards from popular Kindleberger Park. It is a full remodel - four bedrooms and two bathrooms with an attached two car carage on a quiet street. This home has been occupied since the day it was listed by the perfect tenant family that keeps it in immaculate condition and has even improved the landscaping since moving in with intentions to stay long-term.

When combined together the portfolio brings $85,500 in gross rents, with current business model producing a $46,187 NOI and $22,000 cashflow.

Over the past two years I have invested over $80,000 in capital improvements and there is still opportunity to add value and then raise rents.

Southwest Michigan continues to be listed as a highly desirable area for real estate investment!

The three multi-family properties can be seen together in the first picture. The two front properties are the 4-units and the rear (yellow) property is the two-unit.

Portfolio Listing Price: $530,000

Contact me here on BiggerPockets with questions or connect privately with me through BP messaging or at [email protected].

Agreed. The market is hot right now... so it's going to be tough to purchase at low prices and without an earnest money deposit and standard down payment. 

Wecome to BP! I own 11 units in Kalamazoo (up from zero in 2014) and would be happy to answer any questions you might have as well. 

@Brandon Krieg Brandon - shoot me a gmail when you get a minute with your recommendations... I'm also quoting four properties out right now and would love to benefit from any recent experience.

All - I'll also post who came out the lowest when I finish the quoting process. For context, I'm quoting insurance on 2 four-units, a duplex and one SFR.

Shawn,

Share the results with us when you finish quoting your new property out - we'd all like to know who came out the lowest as of January 2016!

-Nate

Welcome @Diana Snyder! I'm an agent (for myself and other investors only) and personal  investor in the greater Kalamazoo area. If I can ever help you with anything in my neck of the woods please let me know.

Best wishes in the fourth quarter! Finish strong!

Nate

Long time, no see Andy! Good to know you're in town. Love seeing good people investing locally.

Let's grab coffee sometime to catch up. I have a story or two from the 10 units we added over the past 9-ish months. 

Nate

Kalamazoo is a great market for student rentals. Like any other type of rental, your future likelihood of issues directly depends on level of tenant screening you do, and whether you require parent(s) to co-sign. 

Parent co-signers eliminates almost all issues... One call to them at the first sniff of any issues and the kids usually have an attitude (and cleanliness) adjustment. 

I'm in the Kalamazoo market as well. Added 11 rental units in the past year and might have some relevant experiences to share if you're ever interested. I'd be happy to walk you through a current project. 

Unfortunately I rarely make it to any of these meetings due to travel related to my full time job, but would definitely recommend that you attend them if you can make it. 

I can attest that many of the folks who have responded are legitimately active in this market and are great resources. I've personally done one deal wth @Brandon Krieg and can vouch for his integrity. 

Last, I maintain my real estate license solely for investing purposes. If you want help with something feel free to let me know. I help others in the local market every once in a while from that perspective as well.