Does anyone have experience investing in Flint MI?

Question

I'm interested in investing in Flint MI, specifically multifamily (2-8 units) as buy and hold.   Has anyone invested in the area recently or currently holding multifamily? If so, what are the average rents to 2bed/1bath units?  How do you find your properties?   Thanks Toni

Pamela Morrison · Answer

@Toni Dixon we are local, just south of Flint. We have been investing in Flint since 2019. Both flips and rentals. Cash flow is great. Now it’s a little tougher with the higher property values. You need to be extremely picky on the neighborhoods you buy in. We were paying 40-60k for 3/1 homes bringing $750 rents (C class homes). Now those rents are up to about 900-1100 and those homes doubled in value. But again, neighborhood is important. We flipped 3 that we were going to rent because we moved to different investments. It’s a little harder to find a deal now like it is all over. Keep in mind Michigan in general is sensitive to economy fluctuations. Have a good property manager that screens well would be best advice.

Toni Dixon · Answer

@Pamela Morrison and @Drew Sygit, thank you for responding. I'll definitely keep your responses in mind. I've not purchased anything yet, but I will certainly start to look closer to the colleges/universities.  Thanks again!

Toni Dixon · Answer

@William Costello, thanks for responding!  Im not familiar with syndication, please explain.

Pamela Morrison · Answer

@Toni Dixon College Cultural neighborhood is really the best place if you want close to downtown. Flint Township neighborhood is very desirable also. Correct north end is not best. The one neighborhood I mentioned above is east, border of Burton. So there are good pockets almost everywhere. Yes we invest in single family. Most of the multi family units are not in the best neighborhoods. The ones you are mentioning bring 550-700 in rents but have a change of being a more challenging tenant. Burton could be another option for an area to invest in for you. Price point will be sightly higher.

William Costello · Answer

@Toni Dixon  investing in the surrounding suburbs would be a great idea with rental properties as well as investing in student housing for local schools and universities. Have you thought about syndication ever particularly in the Midwest?

Drew Sygit · Answer

We haven't managed in Flint, but know a couple of DIY owners there.

Flint is a lot like Detroit, where much of the population is around the poverty level. So, we refer to them as Class C & D tenants.

Class C & D tenants have terrible credit and poor job stability, which lead to income challenges, which lead to late or missed rent payments.

The ROI's look high for these types of investments, but your ROI can quickly go to "0" with poor management. Even with good management, there are challenges.

Toni Dixon · Answer

@Pamela Morrison, thank you for responding!  you mentioned being extremely picky of the area.  I've been cautioned against the north side and parts of the east side, so I've been trying to focus my attention on other areas- near downtown, south and west etc.  Truthfully Im looking in all Genesee County.  I am finding properties in the 40+60k area which is a good price point for me, the C class properties as you state.  I am curious, I am looking at multi-units, 2-3 family properties that are typically 2 bed/1 bath.  In your experience, what are those going for monthly?  Are the homes that you rent single family for $900-1100? Are they located in Flint? If so, which side of town?  Thank you again for taking a moment to respond.

Toni

Toni Dixon · Answer

@Drew Sygit, thanks for respondingI   I am not, nor intend to be a slum lord.  I believe everyone should have access to safe and affordable housing.  You are correct, screening will also be important.  I plan to hire an experience PM to manage on my behalf (distance and working my 9-5 makes it difficult to self manage) and that will be a part of their process.  It sounds like maybe you've managed there before and had issues with collecting payment?  In your opinion was it usually because the tenants weren't screened properly or other outside influences such as no jobs in the area making it difficult for otherwise good tenants to pay their rent?

Toni Dixon · Answer

@Corey Frank, thanks for responding and my apologies for my delayed reply.  Yes, Flint has taken a hit. There are still colleges there and hospitals, so I don't consider it an area that will completely lose its population. A lot of the population loss was over the water crisis, which has been largely updated. I understand 85% of pipes have been replaced to date.  I realize I have to be more careful here than in other areas in which the economy is booming.  Right now the price point is at a level I'm looking to invest.  Of course I'm carefully evaluating my numbers.  The property has to cash flow.

Drew Sygit · Answer

We've heard of investors making it work in Flint that:

1) Invest in student housing for the local colleges & universities

2) Are a step above slumlords as that's what the market is

3) Buy rentals in the surrounding suburbs.

Flint has a lot of problems and if you're buying cheap houses there, expect a lot of nonpayment and maintenance headaches.

As always, there's a way to make money if you work hard enough.

Does anyone have experience investing in Flint MI?

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