Advice on running numbers in Michigan/Grand Rapids

[Dan Sundberg]

Hey BP!

I'm looking for some advice on investing in Michigan generally, and/or Grand Rapids, MI specifically. 

I've successfully completed a few house hacks in California, and am looking into branching out to the Midwest with small to mid multi-family to scale a bit faster. But I feel like I don't know what I don't know when it comes to running numbers in the midwest. 

What are costs associated with snow/harsh winters? Do property taxes fluctuate? What are insurance costs like (we've got a lot of local variability around fire insurance for ex.)? I've noticed a lot of multi-family buildings are pre-WWII housing inventory - are there restrictions or issues common with that (historic districts, crazy high utility costs, etc)?

Also, anyone local to Grand Rapids have any advice on investing there? I went to school in Michigan and worked in GR for several years, so I'm fairly familiar with the areas, but not as an investor. And that was more than 10 years ago.

Thanks!

[Ezekiel Ayers]

Hey Dan! GR is a great market. I own a single-family home built in 1950 here that I rent out. You do need to pass inspection with the city. I bought it about 9 years ago as a primary residence, which keeps my taxes low. Winter doesn't bring too much extra cost as long as the home doesn't have outdated appliances and has sufficient insulation. There will be some extra costs if you're offering snow removal. Here are some links that might help. Happy to connect if you have any additional questions.

State of Michigan Property Tax Estimator: https://www.michigan.gov/taxes/property/estimator

Grand Rapids MI Rental Certification: https://www.grandrapidsmi.gov/Government/Programs-and-Initia...