All Forum Posts by: David Hall

Hi Chase,  contractors are hard to find in the Lansing market as I'm sure they are everywhere right now.  Not only is there a shortage of skilled tradesmen, there is also an increase in demand for them as the weather improves, the real estate market rises and several investors are flocking to the midwest because of the strength of our rental market. 

I have a few handymen I can recommend, but if you need licensed contractors and plan on doing work that requires permits you may need to interview some yourself.  I would also recommend planning on longer timeframes for the work you do and higher prices.

East Lansing is worse then Lansing as far as being landlord-friendly.  Lansing is not the friendliest of markets for landlords, but if you play by the local jurisdiction's rules you can do well.  There are a lot of options to get the 1% rule (ex. buy for $100,000 rent for 1% or $1,000), and I've gotten all the way up to 4%.  But there are pockets that make sense and others that do not, even for the same house with the same rent.  

I recommend identifying some homes that might interest you, and driving the neighborhoods to see what you think of the areas.  I am happy to give you my two cents on any neighborhood as well if you are on the fence.  

Good luck!

I investor and focus on Lansing Michigan.  We don't experience huge appreciation but have very linear growth.  There are also cheap houses all over, so every cheap house isn't a deal.  

You can easily get the 2% rule on C class areas, but a lot of investors prefer to spend more and buy in B class neighborhoods that will attract better tenants and normally have fewer headaches.

Lansing is a strong market because our economics are driven by several industries, GM manufacturing, Michigan Government, Hospitals (Sparry and McLaren) Insurance and investment companies (Farm Bureu, Auto Owners and Jackson National), and we have Michigan State University and Lansing Community College.  All these industries create a secure market for investors to expect long term, stable returns.

From what little I know about Detriot and Grand Rapids.  GR is booming and expensive to invest in right now.  I work with several investors who are migrating to Lansing because price to rent ratios don't make sense in GR, but it is a great market (currently) for appreciation.  Detroit is experiencing tremendous growth as well.  Some areas are still rough so it pays (as in any city) to know the area well or work with someone who is familiar.

If you want to talk more about Lansing, let me know.  I'll let someone else chime in more about the other areas.

Coffee and Real Estate is a free event, open to anyone interested in Real Estate. It is meant for newer investors to bring their questions to learn about Real Estate Investing and the Lansing market. We will discuss more basic concepts of real estate, setting goals, accountability, buying your first investment, what commercial vs residential is, what is wholesaling, what is a good return, how to find investments, etc.

Bring your questions, bring your knowledge and help us sharpen each other.

Also, to anyone who filled put goals at our January meeting. If you want accountability and the chance to share, bring your goal sheet and share how far you've come as we approach the end of Q1.

Event is from 7-9am on March 5th. There is no formal agenda, just coffee and real estate.

Thanks for responding and taking the time!! I wish you the best of luck investing in my backyard.

Great work Sean and thanks for sharing.

I'm curious (forgive me if you answered this already) Where did you find your contractor and did you use the same contractor on both projects?  How did you find your property manager and realtor?  Did you make several low offers for the 2nd deal before you got one accepted?

Greetings Tim.  I am an investor and realtor in the Lansing and surrounding markets and feel I have a pretty good grasp on the East Lansing/MSU rental market being oversaturated.  The short answer is no.  Assuming enrollment stays steady, there is always a need for student housing.  The city is preferring students to be in student housing or apartments designed for students and are trying to reduce the number of rental licenses given for single-family homes.  There are still opportunities for rentals, but there are a lot of people with a lot of money willing to invest in a "college town" because they heard on a podcast somewhere it is a great idea.

My advice would be to invest in Lansing, just West of East Lansing, between the Capitol and campus.  Neighborhoods like the "East Side Neighborhood" have been appreciating big time.  They are also becoming very trendy as students move into older neighborhoods to be near that part of town with edgy bars and modern coffee shops.  The walkability in that area is increasing, rental rates are increasing and demand overall.  The beauty here is that you are not anchored to one demographic for renters.  Getting closer to downtown you could rent to students from LCC, MSU, nurses who work at the hospital or any of the workers who support the infrastructure around the down town area.  If either industry fails (or the student debt bubble pops) you'll still have a steady stream of tenants!

Hey Mike and congrats on your success! I'd like to invite you to our REI Meetups we host monthly in Lansing. You can find them here on bigger pockets, on meetup.com or on our facebook group. We'd love to have you.

I'm curious to know if you have a "freedom number"?  The amount you need in passive cash flow to be able to quit your job or retire?  Going from 1 to 8 units in a short time is phenomenal, I'm curious to know how long you plan to ride that out?  Also what your financing structure is?  Once you have 10 mortgages, how will you scale from there?

Great job so far!

Some banks that were more interested in umbrella loans on 1-4 units are tightening up.  It is much easier to use private funds which has been my focus.  We buy, fix, rent and either refinance or sell.  The initial funds to purchase and rehab are the funds I need.  I haven't had a problem refinancing out of a deal yet if it hits certain metrics. 

I have the best problem! I have more deals than I have funding. I am looking to find partners on fix and flip and BRRRR projects. Our operation is in the great Lansing Michigan market, I have a team of licensed agents as well as handymen and office staff. We are finding great success in direct marketing, finding and flipping 1-4 unit properties. Our goal is to do complete the 6 projects we currently have and an additional 10 properties by year-end.

The ideal partner would be able to bring to the table one or all of the following, 1) Funding 2) Out of state buyers for turnkey rentals 3) Project Management Experience 4) Construction Experience.  

I am looking to drastically scale what we are already finding success doing and would love to align with other like-minded individuals, with different skill sets to mutually achieve our goals.

Feel free to message me or comment below.

Any pointers or criticism is encouraged.  Thanks.

Coffee and Real Estate is a free event, open to anyone interested in Real Estate. It is meant for newer investors to bring their questions to learn about Real Estate Investing and the Lansing market. We will discuss more basic concepts of real estate, setting goals, accountability, buying your first investment, what commercial vs residential is, what is wholesaling, what is a good return, how to find investments, etc.



Event is from 7-9am on January 9th. There is no formal agenda, just coffee and real estate.