Lansing Michigan: what are the good pockets to invest?

Question

Hello,

I have spent quite a long time in East Lansing/MI while I was doing graduate studies, so I am familiar with the area in general. I live in Oregon now and I hold a RE license in Oregon where the rent/home price ratio is not making any sense. So I decided to look in Lansing Michigan for investment properties. I understand Grand Rapids is growing in a more faster pace but the cash flow seems to be hard to obtain (still I am not ruling out that option just yet either).

Would you suggest the Lansing area to invest in for buy and hold cash flow? What are the factors I need to keep in mind  in a good investment property in Lansing Michigan. Is rental license easy to obtain for homes in Lansing? If so, which areas are best for investment?

Thanks,

Patrick Snyder · Answer

You can find it online... they use a specific code book for rental properties,  which is pretty comprehensive. They look at everything,  inside and out. Troy is right,  though... once you're registered,  the re-inspections are pretty straight forward.

As for neighborhoods,  Lansing can be very spotty... street by street in some areas.   The streets north between Pennsylvania,  Kalamazoo,  clippert, and Saginaw might be a good starting point since the location is convenient to downtown lansing and msu, and the housing prices can be pretty affordable for the investor.

Patrick Snyder · Answer

Each of their websites would tell you, but I'm pretty sure neither have code compliance

Drew Brown · Answer

Hi @Isil Berkun Lansing and many of the surrounding areas are great investment areas. Rental requirement are listed on the city’s code enforcement section.

Some other city’s in Michigan that great to invest in as well are Battle Creek and Kalamazoo. Great commerce mixes growing population and home sales value that allow an investor to still make sense.

If you have additional questions I would be happy to answer them. I am a investor and realtor in the greater Lansing area.

Troy DeLong · Answer

@Isil Berkun Yes, I think most around the area would agree that Mason is the best of those 3. Holt still can get very good rents in the nicer parts. Mason has great schools and is a county seat city (Ingham County). County seat cities are usually more active with jobs and businesses.

Michelle B. · Answer

@Troy DeLong thanks! this is a gold piece of information. Are you saying Mason is better than Holt and Lansing in terms of tenant and ease of rentability (by not requiring code compliance)? Any other benefits of Mason that you meant, such as rate of appreciation or cash flow over Lansing and Holt?

Troy DeLong · Answer

@Isil Berkun Holt (Delhi Township) requires rental registration and inspections every 2 years. They are not quite as picky as Lansing, but still require extra fees and inspections. The areas and tenants are much better in Holt than in Lansing.

Mason is the best location of all three, but you will definitely pay more here. Mason, at the moment, does not require rentals to be registered or inspected.

Michelle B. · Answer

thank you Patrick Snyder and Troy DeLong.

Is it the same in Holt or Mason? or you can rent properties there with no licensing requirements?

Michelle B. · Answer

Hi, thanks for the information it helps.

How can I learn more about the requirements city of Lansing have in order to meet the conditions for rentals? I wonder what fix requests usually come up after the city of Lansing inspections for a potential rental: Are they big ticket items like roof, furnace etc or small repairs ?

Troy DeLong · Answer

Hey @Isil Berkun,

Lansing is a great option for affordable properties if what you're looking for is cash flow. Good vs Bad neighborhoods in Lansing is subjective and is always changing over the years. I would recommend finding an agent who knows the neighborhoods and can point you in the right direction. A good start would be Old Town, Reo Town, and Downtown Lansing (East side).

City of Lansing can be pretty picky when it comes to your property "meeting code". I would expect quite a few repairs if the property isn't already licensed. After it's inspected and approved, it's pretty easy going after you pay all your fees.

Hope this helps!