Alpena, Michigan. Anyone experienced in investing in that area?

[Yoree Washington]

I’ve had my eye on the area for years. Most of those years were with minimal RE intelligence. Beautiful place. Affordable homes and recreational property. Where I lack knowledge is there economic climate and path of growth. Are they affected by any of Michigan’s other “issues”? It’s seems to be a fair distance from struggling areas, but I’d love to get some 1st hand opinions from someone with boots on ground. Any info helps. Thanks BP!

[Kurt Hines]

Hi @Yoree Washington  I have a residence about 25 minutes outside Alpena. I’ve been looking at investing there for a couple years, and just bought a four Plex a month ago. 

In my mind the biggest issue is the relatively low rents for SFR, where I am not comfortable they are high enough to make enough cash flow to cover CAPEX costs.

Since you’re not local, your other issue is going to be property management. There is one company, and I have only heard bad things about them. I’m self managing. 

There is a tourist season up here too. I have family with vacation rentals, but the main season is only 10 weeks in summer. I’ve heard people having wider luck outside that tourist season, but I don’t have any knowledge directly. 

The economy and rental market is strong right now in Alpena, but when we have a recession, I think it could be harder hit than other areas. 

Hope that was helpful!