All Forum Posts by: Jake Thomas

@Michael J. Lemus I will say Grand Rapids no longer has deals like this that I see. Of course, I see homes for that price point, I likely have 4-5 off-markets that fit that bill but your rehab budget is very light for a purchase price of that much and an ARV of $150K. Most people are getting into flip here and expecting to make maybe $20K. It is very competitive here in GR right now. Otherwise, this is a fantastic market to invest in, home prices are still increasing, vacancy rates are super low and more and more jobs keep coming to this area.

Investment Info:

Single-family residence fix & flip investment in Grand Rapids.

Purchase price: $112,000
Cash invested: $47,000
Sale price: $260,000

Contributors:
Randy Snyder

Bought this flip in downtown GR. It was probably one of the worst houses we have ever seen. The previous tenants had their water turned off so they were sh!tting in buckets and they left their dog at the home (dog has been safely rehomed). We ended up getting is sold right before COVID hit our state.

Initial investment: $112,000
Rehab costs: $47000
Sales Price: $260,000
Taxes and fees: $10,750
Profit: $90,250

Investment Info:

Single-family residence fix & flip investment in Grand Rapids.

Purchase price: $112,000
Cash invested: $47,000
Sale price: $260,000

Bought this flip in downtown GR. It was probably one of the worst houses we have ever seen. The previous tenants had their water turned off so they were sh!tting in buckets and they left their dog at the home (dog has been safely rehomed). We ended up getting is sold right before COVID hit our state.

Initial investment: $112,000
Rehab costs: $47000
Sales Price: $260,000
Taxes and fees: $10,750
Profit: $90,250

I work with several investors investing in the Grand Rapids area. You can easily hit the 1% rule here and expect quality tenants. I work with a large property management company that makes your investing experience very easy. 

Grand Rapids is a solid market to invest in. I tell most investors you can expect to still hit the 1% rule. I still personally invest in GR and will always invest here as the local economy is very strong and its a great place for younger people so there will always be renters. 

@Tye Mitchell Welcome to BP, there is a wealth of knowledge on here. I am a local agent and work with a large property management company in the area. I can help you get started on your journey if you would like. Good luck.  

@Brandon Kiel I am a Realtor and invest in the GR market. United Properties manages all of my GR rentals and I have had great success using them. They get the units rented faster and for more than I would expect to get so really they pay for themselves and I don't have to handhold tenants each month for rent. Let me know if you need any help finding any properties. Thanks

@Andrew Russell welcome to the site. This is the best resource I have ever found for a newer investor. Also, the local community is great and full of people with experience and information. Don't get stuck on analyzing properties (a reference to your other post) and focus on finding properties that have great potential. The best properties I have ever purchased didn't cash flow on paper from day 1 but exceeded expectations after a little rehab and new tenants with time. Some people get stuck with the numbers on what its worth today and what it rents for now but look out to what the future numbers are going to be and it may open up your options. Good luck

You are stuck in analysis paralysis it seems already. I would never suggest putting more than 20% down on a SFH investment as it won't change your interest rate or cash flow by much. You are better off saving the cash for repairs or second property down the road. Don't get caught up in figuring out cash flow based on 20 vs 30% down, first find a property that is priced well in a good area with great rental potential and everything else will fall into place and you will figure it out with time. I would also suggest finding someone to help you with your first investment purchase that also owns investments so they can help guide you on all of these things. Your cash flow calculations might not even be right as the property you are analyzing may be under rented by 50% anyways but you wouldn't know that unless someone with experience is helping you.

I ran into this same issue when I first started. Many people I knew decided to use someone that wasn't me and it sort of offended me and they did the same thing by asking for my advice but I politely stayed out of it. I agree with what @Russell Brazil was saying about being a full-time agent vs. part-time. When I gave the impressions through conversations and social media marketing that I was a full-time agent its like a switch flipped and now I haven't run into the issue you are facing since. We still actively invest like you do but really have two different businesses and we portray that mostly through FB pages and other social media platforms. A lot of people don't understand what investing is really and don't see that as you can help them buy their next home. You have to show them you are helping all of these other people with their purchases and things will slowly change. Good luck