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Updated almost 9 years ago, 02/03/2016
First House in Michigan as a Newbie investor for rent, what do..
Hi
re: is this a good place to begin?
I am a newbie at residential (I was in commercial, so I have some experience!) My agent knows of someone who is going to sell a house in Clarkston, Michigan. I have not seen it yet but it is a 2 bedroom 1 1/2 bath just shy of 900 sq ft. It sounds as though it would be move in ready, I drove by roof is fairly new. I do not have a price yet but my agent mentioned something about $100,000. It has a fenced in yard and is in a good school district.This would be a buy and hold and I want to build up to numerous houses. I know it's a bit early since I haven't even been in the house! There are other areas in Metro Detroit that the houses are alot cheaper, but I am not sure I want to invest there! :) BTW
the basement is suppose to be partially finished with rooms for crafts/office etc.
(thanks in advance for answers by the way!)
Clarkston would be a great place to invest as well as start out, very desirable and well to high priced. So, provided you can find a good deal, it should be great to rent. Use the BP rental calculator to find out if the numbers work. Good luck!
What are you thinking you can rent the home for?
@Haley London I am also looking to invest in Detroit, can you send me the details of your agent in a PM? Thank you!
I am thinking I could rent it somewhere in the $900.00 area, perhaps
a bit more if the rooms are nice in the basement for an office/craft room etc.
( I know this is a lot of speculation right now!) I guess my thought on this are, location
and school district, and perhaps better tenants!
My agent is going to run some rental comps for me too. Then I'll use the
rental calculator on here and see if it makes sense! I just wondered if buying
in more of an upscale area is better to forgo some cash flow, and go for
the appreciation which I think Clarkston can have, over other less expensive
cities. I have actually wondered if it is better to have one nicer house, for
two cheaper ones.
Originally posted by @Haley London:
I am thinking I could rent it somewhere in the $900.00 area, perhaps
a bit more if the rooms are nice in the basement for an office/craft room etc.
( I know this is a lot of speculation right now!) I guess my thought on this are, location
and school district, and perhaps better tenants!
My agent is going to run some rental comps for me too. Then I'll use the
rental calculator on here and see if it makes sense! I just wondered if buying
in more of an upscale area is better to forgo some cash flow, and go for
the appreciation which I think Clarkston can have, over other less expensive
cities. I have actually wondered if it is better to have one nicer house, for
two cheaper ones.
You ask an interesting question based on an assumption that the appreciation will be better in Clarkston than in the lower price areas of Michigan.
The facts do not support your assumption.
One Year June 2014 to May 2015 gains in Median Sales Price
Wayne County (Including all of Detroit) 43.1% from $80,000 to $114,500
Oakland County5.9% from $193,600 to $$205,000
Actually Oakland county had the lowest increase of the 4 counties and Wayne had by far the largest.
Source and Link to full article in this thread (Page 3 I Think)
Welcome to Bigger Pockets. Consider sending messages to other members for specific guidance.
Hi @Haley London, Clarkston is a great rental area. I have one there also and it is very easy to find tenants. $900 seems low to me if the house is in decent shape. I would expect over $1,000 for it. Good luck!
Brad
@Brad T. Hi, thanks for replying! I still haven't seen it yet on the inside, but it is suppose to be updated and I probably would not have to do anything to it (great for a 1st house!) Do you have other houses besides Clarkston, and if so do you have them close by or do you spread out all over the metro area?
Hi @Haley London, I agree that a house that is already updated is a good first one to get some experience.
I have 3 others in Waterford and 1 in Madison Heights. I also just acquired a 12 unit apartment in Monroe.
You said you have some experience in commercial business, what did you used to do?
Welcome to the residential side!
Brad
@Brad T. I looked at one in Waterford, but it already had an offer! I have thought of Madison Heights too but have not pursued anything there yet. Congratulations on the 12 unit apartment, that is a big feat! That has got to be exciting!
I owned a commercial warehouse and was a landlord (family biz type situation). I could write a book on what I went through with it. People that know me can't believe I want to get into residential after all of that, (I ask myself that too sometimes!) but I am not interested in the stock market really. I know residential has its own set of issues, but it seems as though it would be easier for me. It is different than commercial though, so I guess I am a residential newbie?!