All Forum Posts by: Brandon Koster

I don’t have any experience with the transfer issue that is the core of the post.  Sounds like some frustrating red tape.

My first City of GR rental was not too bad to get certified last year.  It was my personal home in Alger Heights before.  They gave me a big list and PM sent them pictures of addressing most of the things and because of COVID they were ok with that and just certified it without another inspection (at least I don’t think).

I have started looking for cashflow on the edges of the Grand Rapids area lately.  I am going into Muskegon.  I will probably have 2-3 MKG units by the end of 2021.  I have been very impressed with how much nicer Muskegon is now than a few years ago.  

My theory is that many renters are being priced out of GR and this is only accelerating.  Therefore, many will be willing to make the 40 minute commute from Muskegon in the future.  

QUESTION: Does this theory hold in Battle Creek too?  Is Kalamazoo area employment growing at rate similar to GR?  Cashflow in BC seems to be about the same as MKG, but I could be off.  I am less convinced about BC in the long-term.  As I see it now - I need more cashflow in BC for me to bite.  This has almost nothing to do with BC or MKG themselves - rather GR being a better long-term employment market than K-zoo.  

Anyone out there share this view?  Anyone feel differently?  Let's have a showdown to decide the West Michigan cashflow market champion! :)

You do not need a structural engineer or a MEP engineer for most renovations in GR.  You can even do all of the work yourself if you own the property here in GR.  You just need to get your inspections.

I would describe them as a good building department to work with compared to other mid-size cities.  Obviously they have more regulations than in suburbs or small towns, but they are not bad overall.

The main question is - what you want to do?  Most renovations on rentals (flooring, cabinets, paint, tile, etc.) you do not need a permit at all.  If you are doing big plumbing, electrical, or structural - time to pull permits.

I would for sure be interested in a meet up.  It would be great to find a space where we could do one safely (I know people of different definitions of that), but back in person.  I think there would be a lot of interest.  

What about financing are you struggling with? Do you not have enough cash for 20% down? If you are willing to live there for a year there a tons of duplexes in GR that will cashflow. FHA loans are only 3.5% down, conventional loans 5% now with good credit. If you don't want to live there - you will have to save more cash. Once you get 10-15K saved you can buy a great single family in Muskegon that cash flows amazing. If you want more aggressive borrowing strategies than this DM me :) There is plenty of money out there right now for deals and you should get in now - before all of this stimulus money causes inflation - if you want to get in at all.

I live in Grand Rapids and I am targeting Muskegon right now.  I am potentially also going to move into Battle Creek in the future.  Grand Rapids itself is becoming more difficult to cashflow in - there are areas where you can and also be positioned for appreciation - they are just harder to find deals in.  In GR you are competing with house flippers - MKG and BC you are not.

Property manager is MVP here. If PM thinks they can get significantly more rent with significant renovations (20% ROI on the renovations), I would not renew the lease and renovate. If I could not get that and this tenant is good - I would just raise according to the market and do regular maintenance only. Contractors in GR are overwhelmed with work right now - keep that in mind. If you decide to renovate make sure you plan well in advance and hold them to the plan. I would lean hard on my PM here, they have an incentive to get more rent too.

I live on west side of GR - feel free to DM me the property listing and what you get now for rent; I am an expert in my own opinion and some say it is worth what you pay for it.  :)

Would it be fine to assume I could get 4 loans in each name still be fine to get an FHA loan for a personal residence? Would that be ok since FHA has larger DTI allowed? Still having the ability to move residences is my big concern. Personal residence would be only loan with both my wife and I's names on it.

The City of GR just opened this option up to a lot more properties, but it is still not an option for most single-family lots.  Finding a a house on a corner lot in the City of GR will be key.

https://www.grandrapidsmi.gov/...

@Oren Kachel Are you looking for appreciation or cashflow?  If you are looking for "up and coming" Baxter neighborhood is one of the lowest cost in the city (therefore great cashflow) and is surrounded by full-force, high-end gentrification on 3 sides.  It is lower income and has some crime, but it is only a matter of time before it gentrifies.  Wealthy Street is currently a huge cultural and economic dividing line, but that will not last forever.

Also - keep an eye on where CopperBay (you can Google) is building new rental homes.  They have big money and are building cookie-cutter brand new rental homes across the city.  If they think the area is good enough to invest in building a brand new rental, it is good enough for me.

@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.