Michigan prices are going up

[Scott K.]

http://www.detroitnews.com/article/20140317/BIZ03/303170101

wow this is why I am getting killed out here trying to get some properties. People are bidding way over asking in the Detroit Michigan area

[Michael Dundon]

I think the problem is relying solely on the mls. The last 9 properties that my partner and I have picked up as rentals in South Redford and Oak Park over the past 6-9 months have not been on the mls. A handful have come through networking with attorneys (bankruptcy/probate, etc.) one or two from auctions (auction.com I think) and the rest through direct marketing to sellers (probate and absentee landlords). Another was bought direct through a local Credit Union. These strategies definitely take more time and energy and in some cases money than just looking on the mls (although there's hardly any competition) but changing markets require changing strategies. It was definitely easier a few years ago ( we were able to pick up 16 properties from mid 2011 through Feb. 2012 using the mls- after that it was a lot more difficult using the mls although we still managed to buy 14 more from March '12 to Aug. '13.

My partner has used some of these same strategies to pick up flip properties in Livonia, Westland, Dearborn, Farmington Hills, Southfield and others that I'm probably forgetting. He hasn't used the mls in over a year to pick up any properties.

Prices are higher for rentals but the numbers/returns are still really good historically. You can be all in in South Redford or Oak Park for 60k-70k and still have good cashflow/ROI. It's not like the good old days where you could be all in for 40k-45k but what the hell. If anyone wants me to go into more details on the current numbers I'd be happy to...

Mike Dundon