Looking to buy a rental investment in Ann Arbor, MI

[Hani Alomar]

Hi

Does anyone here have a rental property in Ann Arbor, Michigan. I'm thinking of buying a 1 or 2 bedroom apartment there and renting it out to a student in UoM. What do you guys think? ROI should be good. Is it a good time to buy there? A specialist advised me to wait a bit because everyone is predicting a price drop. Any advice?

I live in Orange County Southern California, so this is an outside investment

Thank you guys

[Matt Souza]

There could be a price drop coming, but that is beside the point. I would have to agree with Joe, your numbers seem off, and you are missing some very important costs (bold).

Rent: $1300 / mo

Mortgage: $630 / mo (4.8% over 30 years)

Taxes: $260 / mo

HOA: $200 / mo

PM: $130 / mo (average)

Insurance: $80 / mo

Maintenance: $65 / mo (5% gross rents, very liberal)

Vacancy: 5%

You will actually lose money every month, even if you were to self manage. Just my two-cents.