Where to start in HOT Grand Rapids/West Michigan rental market

[Jacqueline Coombs]

Hi! I am relatively new to this and want to implement the BRRRR Strategy to build a portfolio of rental properties here in Grand Rapids, MI. I realize that GR is a very HOT market right now and I am afraid that I will not find anything I can buy below market value. I am wondering if I should look instead into surrounding markets, like Muskegon, Kalamazoo, Holland, etc? I am taking out a cash-out refi on my home and will have financing for approximately 2 houses at 100k each) I am not afraid of doing some fixing! What "rules" apply to the current GR market? 2% rent rule?, cap rate?, 5 year rule ( 60 x rent = Purchase price)?, 80% ARV all-in? Are any of these applicable/realistic or should I look elsewhere? Does anyone here have any input for me? Experienced Buy&Hold investors willing to let me buy you lunch in exchange for letting me pick your brain about the GR or surrounding area rental market? 😃 Thank you, all! I am looking forward to hearing from you!! Blessings, Jackie Botham, GR, MI (Cascade)

[Jason Ramer]

Hi Jackie. These are all great questions, and I think you would want to get involved here at BiggerPockets checking out the Podcasts and Blogs to help point you in the right direction (as far as the #'s). I would begin analyzing deals, and then you'll begin to recognize the "good" ones. Then you will at some point have to take the plunge and get your first homes. GR is a great market, and it could be tougher to get a home under contract, but you also know there is more to choose from that way! Also, there is an investor group in G.R. called RPOA (Rental Property Owners). It's not quite as expansive or in depth as BP, but will put you in touch with many folks who invest in GR, and are doing very well. You can meet them face to face and they can help with specific GR questions. Most of my investments are in the Kalamazoo area. This is a tougher market in comparison to G.R., but is still solid. Good luck investing, and make sure you post your future successes!

Jason.