All Forum Posts by: Alaina Korreck

Hi @Trevor Mitchell! I live in TC and would be open to grabbing coffee sometime and talking about the market. Don't forget to consider short term rentals; very lucrative up here! 

Hey @Lance Blight-

I live in TC as well! Anyways, of course it is still house hacking if you are cash flowing negatively. You'll be one of few people living in Chicago for $500/month. House hacking is a strategy that allows you to live cheaply OR free, it doesn't have to be one or the other. The best benefit of this strategy is that when you stick it out for a few years and build equity in your home with your tenant's cash, you can eventually leverage that for your next property and/or move out and tenant your half and start cashflowing positively. Don't let the emphasis on retireing early or making $10k in passive income deter you from a deal that feels right to you. Your first deal might not be your home run but if it gets you going in the industry and puts some property in your name at 20, I'd call that a win.

Chicago is a tough market and is oversatured with savvy investors always looking aggressively at duplexes and small multifamily, likely the same ones you're targeting. Make sure your financing is buttoned up before you start writing offers as you'll probably be up against experienced cash buyers. 

Cheers,

AK

If either of you ever are interested in investing in TC let me know! I have a vacation rental right downtown that does outstanding in the summer months but still has strong cashflow year round. I also just purchased a duplex that is renting for well above market. There's a lot of opportunity in TC and huge incentives for businesses to move operations up here, which we're starting to see more and more of. @Kurt Hines @Yoree Washington

Hello from your neighboring Traverse City :) @Chad Clark

Hi @Amar P. ! 

I live in Traverse City and own a 1-bedroom STR right downtown TC. Where is yours located? That will be the biggest factor in determining seasonal demand up here. I find you see a dip in nightly prices up here in the lower months, but still favorable demand. I only had four vacant nights in March. Also, I bought mine furnished and depending on where yours is located and what sort of demographic you want booking it (budget conscious, luxury, local emphasis, etc.) will have a huge impact on how you much you should plan to spend on furnishings and decor.

When I talk to other investors about this model, I find it to be helpful to give a 12 month average of income. That's how I evaluated if this one would work for me due to the substantial fluctuation. 

Happy to answer other questions if you have them- cheers! 

@Tim Bergstrom Traverse City is wonderful; I was born & raised here and just moved back about six months ago. 

Prices drop substantially (from $230/night to $89/night) in the winter but it's still profitable with weekend rentals. With all the winter activities up here people still make the trip for skiing, snowmobiling, etc. but it is hard to keep booked during the weeknights. 

TC is somewhat restrictive on zoning for these properties so if you're considering purchasing one, make sure it's a commercially zoned condo otherwise it technically doesn't comply. 

@Fred Shatzoff I just purchased it with a commercial LOC that I will need to refi by June.

@Bruce Bailey I don't have any rentals in the area besides my short term right downtown. I'd like to add some to my portfolio this year. The problem is the best rents in TC come from the downtown area where prices are most inflated. As a very simple rule of thumb and starting point, I look to get at least (but preferably more) than 1% of the purchase price in monthly rent for it to make sense initially. 

Investment Info:

Single-family residence buy & hold investment in Traverse City.

Short term rental property on a commercial zoned parcel in Traverse City, MI

Nice to see other Northern Michigan people on here! I live in Traverse City as well, @Tracey Wittke

@Kyle Ostranderdon't rule out looking for vacation rental properties up in these areas as well. They don't always make sense in traditional RE analysis but can be very lucrative if you keep an open mind and manage them right. 

Cheers & best of luck!