All Forum Posts by: Randy Charboneau

Hey @Bryan Normal!  Congrats on getting a flip asset in this competitive market!  I'll be glad to chime in my advice for you.   I've flipped some homes in Grand Rapids since its my home market and as a Real Estate Broker my focus is on investors and flips so I have quite a bit of experience in this sector.

 Let's look at the Grand Rapids market right now

Back in Feb of 2022, Grand Rapids was in a bit of a crisis.  There is a chart on here called the absorption rate.  That chart represents the time it would take for the market to sell out of all the inventory if sellers stopped listing property and buyers kept buying at their current pace.  A healthy/normal market is about 3 months.  In February, Grand Rapids was down to about 10 days!!  Crazy times.   Since then, the absorption rate has steadily climbed and its up to about 1 month now.  Far from a healthy stable market but improving.  As long as its below 2-3 months we can consider this a "seller's market" and buyers will be forced to compete for homes.

I'm not exactly sure which neighborhood your flip is in, but overall you're in good shape right now and with this type of inventory imbalance the holidays really don't mean that much.   Buyer's need homes and when the supply is this low, they'll be out shopping for a house even when they'd rather be doing other holiday things.    

As to the comments about rushing it to market vs. waiting until its done/first impressions - I tell all my flippers to get the house completely done.  100%.  You don't want to leave unfinished things that are obvious to a buyer because that buyer will assume there's important things not completed they can't see.  As such they'll be nervous about your workmanship or what kind of a mess they are getting themselves into and that means a lost buyer or a lower offer.  Some flippers have gotten away with some things when our absorption rate was down to 10 days and people were super desperate but that has changed as you see.  Also, the $400,000+ market is well above the median here so you're dealing with 2nd/3rd time buyers who are much more wise and savvy and who will not overlook sloppiness or unfinished work.  So my advice is get it ALL done and THEN list it and you'll be much happier with the results.

@Bryan Normal

Quote from @Eric Prescott:

Awesome. Thanks, Randy. I spotted some interesting properties on MLS after reading this thread and really don't know what to make of them without some local guidance. I have been looking at turnkey properties but if I can get the right team together in a market like this, it could make more sense for us to invest this way instead. Do you know Muskegon well enough to evaluate a given property on the market for its rental potential?

 Yes sir!  It's my home market.  I spend a lot of time in Muskegon and have helped several out of state investors set up a portfolio there.   Send me a private message anytime on any property you'd like me to help with or just touch base with what you're looking for and I'll help you out any way I can

Quote from @Eric Prescott:

Hey Nadine!
I cover the Grand Rapids and Muskegon markets and have helped quite a few BP investors get their start in West Michigan.  I'd be happy to run some numbers for you in this area if you'd like.  Just hit me up anytime.

Currently Grand Rapids is experiencing 15% appreciation and Muskegon is 15-25% depending on the area.   Muskegon and Muskegon Heights are focused on gentrification and are making things very friendly for rapid appreciation and its working.   Muskegon might be the best place to invest in the country right now given the rents, cash flow, appreciation and employment opportunities.    

Who in your view are the best PMCs in the Muskegon area? What's their typical take?

Hey @Eric Prescott!  There are a few Property management companies in Muskegon.  Some are Realtors just doing it part time for their clients.  Others are dedicated full service PMC's with contractors and such.  The two that my clients have had the most success with are the full service companies.  Lighthouse PM out of Grand Rapids with an office in Muskegon and Choice PM Solutions out of Muskegon.  I believe both companies have rates in the 9-11% range depending on the size of your portfolio.   Let me know if you have any additional questions or if I can help you out in any way.  Reach out anytime!

Fantastic!  Love to hear success stories about Muskegon!   The appreciation rate is 25% in some spots over here!   You should do really well with a short term rental and that appreciation rate!   Congrats!   

I helped a couple of investors start their portfolio there this year and they are really happy with the results.  Muskegon is a great area to invest!

Welcome to the world of investing Zac!  I've helped quite a few BP users get started here in West Michigan and would be happy to brainstorm with you and share my thoughts if you need some perspective or help from a Realtor in the area.    Shoot me a message anytime and I'll be glad to help you too!

Quote from @Montez B.:

@Randy Charboneau Hey Randy! Where are you getting the information from that’s telling you but the appreciate in every city? I appreciate you alot sir !

Realtors have access to this data available via our MLS statistics. Its not publicly available but I can check any West Michigan market you'd like anytime. Just hit me up and I'll get you what you need.

Quote from @Montez B.:

Hey everyone on the Bigger pockets ! I live in Michigan looking for a investment property(2-4 units) just wanted to reach out and see what website can I use to get the economy growth for each city in Michigan for 2022. If it’s not possible what are some strategies you all use to determine which area is a good location in Michigan to invest in ? I’m looking for a good Cash on Cash return,low crime, great schooling, great jobs and decent appreciation. In 2022 what areas in Michigan did you all come across that has this criteria ? And where did you find this information? I appreciate you all a lot hope to network with you all soon!

 I can run some numbers for you in West Michigan.   We're seeing 15-25% appreciation per year right now.  Muskegon and Muskegon Heights are at the top of that range.   Grand Rapids, Kalamazoo, Battle Creek, Holland and most others are more towards the 15%.   I don't expect a slow down for a couple years until we can get some foreclosures back in the market and reset the inventory.

Quote from @Scott Leuchtmann:

Quote from @Britt Smith:

I've been reading that certain cities/suburbs of Michigan are growing. 

What is your take? 

 Don't underestimate the West side of Michigan. Many people associate Detroit with the state of Michigan. Some of the highest appreciation in the state is in Grand Rapids to the lakeshore. 

 15-25% per year in West Michigan depending on the city/town.   It's pretty crazy.  We've been way undervalued for years so we can handle this kind of a jump and still be okay when the foreclosures finally start again and settle down the market.

Quote from @Nadine O.:

Quote from @Jared Prevost:

@Nadine O.

I recently moved from Grand Rapids MI and I can tell you from a macroeconomic perspective, it's an excellent market to invest in. All 10 of the largest employers are in different industries, population growth of over 1% annually for the past few years and expected to continue, lots of small multifamily inventory, and really good submarkets. If you really want to invest in a cheap city, Muskegon is 40 minutes west of Grand Rapids on Lake Michigan and you can scoop up cash-flowing deals for $50k.

I previously helped manage an Open Door Capital mobile home park in Muskegon, if Brandon Turner is willing to invest there, it's probably worth looking into.

My problem with other midwest states, such as Ohio and Indiana, is that I don't see meaningful long-term appreciation. People are moving where there is a good lifestyle. In Michigan, you have the Great Lakes and a lot of beautiful natural areas and opportunities for outdoor recreation. (Keep in mind my Michigan bias... no one from Michigan likes Ohio haha).

I think the other considerations such as taxes, tenant friendliness, cost of living, etc are priced into real estate by other investors. I really don't find this info all that relevant - not enough to keep you in analysis paralysis.

Thank you Jared - I was just discussing Grand Rapids with my neighbor a couple of weeks ago - he was recommending it as well. Good to know there are lots of small multifamily inventory and I like the idea of investing in areas within a reasonable distance to larger cities (especially now that the job market is becoming more and more remote in many industries).

Muskegon is a good choice as well.

Great job on the mobile home parks! From all the BP podcasts I have listened to, I know they are Brandon's bread and butter :)

Hey Nadine!
I cover the Grand Rapids and Muskegon markets and have helped quite a few BP investors get their start in West Michigan.  I'd be happy to run some numbers for you in this area if you'd like.  Just hit me up anytime.

Currently Grand Rapids is experiencing 15% appreciation and Muskegon is 15-25% depending on the area.   Muskegon and Muskegon Heights are focused on gentrification and are making things very friendly for rapid appreciation and its working.   Muskegon might be the best place to invest in the country right now given the rents, cash flow, appreciation and employment opportunities.    

Hey Brent!

The Renter Property Owners Association (RPOA) is a good source for you if  you plan on investing in GR.  They hold a Friday Morning breakfast networking meeting.  Its decent and I've met some good people there.   
When
Every Friday*
8am - 9am


*every Friday except holidays


Where
Russ’ Restaurant
3966 Plainfield Ave NE
Grand Rapids, MI 49525