Investing in Lansing, MI

[Chase Guelette]

I am a newer real estate investor and have been looking at Lansing and East Lansing for my first buy and hold rental. I'm looking for SFR or Duplexes to rehab and rent. Does anyone know any good Contractors in the city? Also, is landing landlord-friendly?

[David Hall]

Hi Chase,  contractors are hard to find in the Lansing market as I'm sure they are everywhere right now.  Not only is there a shortage of skilled tradesmen, there is also an increase in demand for them as the weather improves, the real estate market rises and several investors are flocking to the midwest because of the strength of our rental market. 

I have a few handymen I can recommend, but if you need licensed contractors and plan on doing work that requires permits you may need to interview some yourself.  I would also recommend planning on longer timeframes for the work you do and higher prices.

East Lansing is worse then Lansing as far as being landlord-friendly.  Lansing is not the friendliest of markets for landlords, but if you play by the local jurisdiction's rules you can do well.  There are a lot of options to get the 1% rule (ex. buy for $100,000 rent for 1% or $1,000), and I've gotten all the way up to 4%.  But there are pockets that make sense and others that do not, even for the same house with the same rent.  

I recommend identifying some homes that might interest you, and driving the neighborhoods to see what you think of the areas.  I am happy to give you my two cents on any neighborhood as well if you are on the fence.  

Good luck!