Newbie investor, Looking at Lansing MI, vacancy rates?

[Kat Marella]

Hello!

As the title says, I'm looking at Lansing, MI as a place to start investing. I saw several small SFH within my price range. However, I am based in southern California and have never been to Lansing. My research shows that there are a good amount of rentals and homes for sale scattered throughout Lansing. I know there are several industries such as government, MSU, and hospitals and most areas are reasonably priced, except for East Lansing, which seems to be more expensive and have larger houses.

My question is how is the rental market in Lansing? What are the vacancy rates? Foreclosures? Is Lansing more tenant or landlord-friendly? (I know CA leans tenant-friendly). How long do tenants stay ?

 I've set this year as my goal to buy my first out-of-state investment property, any input/feedback/suggestions are appreciated!!

[David Hall]

I am biased as I own rentals in Lansing, live in Lansing, and am the best investor-friendly in Lansing, but yes, Lansing is a great market for all the reasons you mentioned.  Diversified industries.  Our market is not fragile and should remain linear and see steady growth for a long time.  Hospitals, manufacturing tied to GM, colleges/universities, and government jobs.  

Rental market is experiencing growth.  I'm raising rents in all my units and tenants aren't complaining and we haven't had one move out due to a rent increase.  Rentals are in short supply and most property managers I know have waitings lists, vacancies are very low. 

Foreclosures are almost nonexistent. If you are getting foreclosed on, it is not because there is a lack of value (like in 2008). Most borrowers in trouble have been bailed out due to inflation. There isn't a lot of foreclosure inventory, but there are some. The best option right now is buying rentals from landlords who are retiring. These are your typical BRRRR deals where you can make some repairs, push rents and produce a stable, producing asset. Lansing has several options for these.

Lastly, City of Lansing is not the most "landlord-friendly" area.  For me the returns you can get outweigh the hassle.  There is a requirement to have your rental inspected every three years and the city tends to be someone inconsistent with their requirements and repairs.  If you hire a manager most of those items won't bother you very much and you can still get the cash flow and positive outcome you desire.

Let me know if you have any other questions or want help finding a rental property.  But I think Lansing Michigan is and will continue to be a strong rental market.