BRRRR In Grand Rapids?

Question

I'm looking to acquire a couple of rental properties and was wondering how Grand Rapids was for BRRRR investing these days? I'm out of state so would also need a good local support system in place.

Is Grand Rapids still a good market for investors?

Charles Kao · Answer

@Lloyd Silver

As a resident of both San Francisco and Grand Rapids I can tell you the same things that attracted out of state and international investors to Grand Rapids remains unchanged.  You have multifamilies and most of the real estate priced well under cost of build so there is still lots of potential to grow and you have population and job growth/diversity in all the key areas.  What will be most difficult for you is getting that first deal and the team to execute your plan.  The biggest obstacle my out of state investor clients and friends have in Michigan is trust.  Without it, its hard to act as fast as you need to.

Ratan Khatri · Answer

Grand Rapids is great, valuation is at an all time high. Consider looking a few miles west in Muskegon.

still have many opportunities with much higher upside potential there in muskegon, very strong employment and climbing rents. And climbing values. Let me know if I can be of assistance?

Justin R. · Answer

Hello @Lloyd Silver. I too am from CA (Los Angeles area) and personally invest in Grand Rapids. Grand Rapids has been hit hard by OOS investors in the last five years, affecting the cost most notably on MF's. There are still opportunities, but personally I feel they have to come from networking and off market/pocket deals. I have done a few BRRRs in GR and more often than not, received all my money back in hand after refinance.

Here are the things I enjoy about GR

1. Its a cool city. Lots of gentrification, Coffee shops, Breweries, nice people, and just a neat town.

2. My PM team there is great (United Properties of W.Michigan). They are a one stop shop with agents, PM, and "in-house" maintenance staff.

3.Economically the city reinvented itself after the loss of US based manufacturing. GR is a town with a lot of educational institutions, and medical research. I believe the market will remain stronger than the majority of the midwest for the long term outlook.

Best of luck!

Mitchell Luban · Answer

@Ryan Burke also consider Private money and you can avoid waiting 6 months. In many instances you are paying 1-2 points and 10-12% interest only on the money borrowed(depending on your relationship with the lender). Then when the project is done you can refinance it and pull the cash out and on to the next one. I have done several of these for properties in my portfolio and am in the middle of one right now.

But I would say the best lenders in town are Finance of America for investors. If you want my contact reach out. He can help with all types of investment properties including facilitating the PM and BRRRR's.

Brandon Koster · Answer

@Mitchell Luban thanks for the lender recommendation.  I have seen Blaine's name recommended in other threads as well.  I have done 4 loans with LMCU.  The one they are doing for me now really surprised me on the closing costs.  It is a small deal in Muskegon - but still seemed high to me.  I someone who does loans for investors everyday - not just sometimes.

Morgan Basham · Answer

@Connor Anderson Hi Connor - came across this thread and your comment and was wondering if you could share your bank recommendations with me as well? I’m looking to house hack a small multi-family in GR and would like to get pre-approved here soon, so your insight on lenders would be great to have!

Mitchell Luban · Answer

@Bret Habura Blaine Marney is who you want. Message me if you want his info.

Bret Habura · Answer

My mortgage is with Consumers CU. I only own one property, but asked around at a bunch of different banks/credit unions. They had the lowest rate and lowest fees when I was looking. I will check out Finance of America as well

Sean Sloop · Answer

With winter weather states, roof, furnace, windows are some capex items to consider when doing your rehabs. Obviously for multi families, you will have added expense for snow shoveling.

Its can't imagine its soooo much worse than southern states, but I wouldn't know enough to compare.

Ryan Burke · Answer

@Connor Anderson thanks for the info. 6 months is certainly doable. If you don't mind, send over those bank recommendations. I'd appreciate it.

BRRRR In Grand Rapids?

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