All Forum Posts by: John Ellis

I used Karen Keel-Todd with Farmers Insurance out of Hemlock MI. when I owned rentals in Saginaw.  Farmers rates were the lowest I found and Karen is a great agent.  We had a kitchen fire in an apartment and she made the claim quick and easy. I would definetly recommend calling her. 

Hi Conrad,

I used to own multi-families in Saginaw and have a few thoughts regarding the properties you're interested in buying. Historic buildings cost quite a bit more to insure, if you haven't spoken with an insurance agent as to exact costs you might want to look into that. I've found that Foremost Insurance gave pretty good rates and is easy to deal with. Repairs and maintenance can run from zero a month to about 500.00 on a typical 4-plex... most common issues are plumbing and heating related-expect 150.00 average per service call. Preventative maintenance will save you a lot of money. If you hire a snow removal company, expect to pay a lot. Can't stress this enough. 

In a choice between a 2-plex and a 4-plex, the 4 unit is a better pick for this reason: there will be occaisonal vacancies. No getting around it. If you have a vacancy in a 4- unit, the other units will be a buffer against the loss of income. Also, should the long term tenants from the duplex move, it will be harder to find a qualified renter at 800.00 or more per month than it will to find a renter at 500.00 for the 4-plex. If you are considering doing third party payers (MSHDA, etc.) they will generally pay about 575.00 per month for a one bedroom unit so you'd see a nice increase over current rents.

Lastly, are utilities paid for by tenants or owner? If by tenants, you're good to go. By owner, make sure you budget for that. Water will be 100-200 per month, electric pretty low most of the year but expect a jump in summer(air conditioning,fans) and gas is very high in winter.

None of this meant to discourage, rental homes are great investments, but it's important to be prepared. Best of luck!

I use and would recommend Robert Jarema with Smith Bovill in Saginaw.  

Sorry, I don't know any property managers in Saginaw - I manage my own properties. I highly recommend managing them yourself, at least the bill paying, tenant screening, rent collecting aspects, and finding reliable plumbers and heating/cooling people- these are the services you'll use the most.  However, the biggest maintenance expense, by far, is lawn care and snow removal.  

Some things you may want to consider:  does the rent on these units include utilities? If so, expect to pay an additional 200 a month or more for water, 300 for electric, and a LOT for gas over our long cold Michigan winters. That doesn't mean it's not a good investment, but something to consider. As far as Saginaw versus Belleville, Saginaw is a very landlord-friendly city and about 60 percent of the population rents, so there is no shortage of prospective tenants. People are always looking for units in the 500 to 550 range, so you're right on track with that.   However, what will you do when there's a problem with one of your units and you live an hour and a half away? What about lawn care in summer and snow plowing in winter?  Unless you're willing to spend a lot of time driving back and forth to Saginaw (and you may be- I used to drive from Brownstown to my Saginaw apartments for years before I moved a little closer. It's not a deal killer, but something to give serious thought) or you're willing to shell out a lot of money for someone else to do all the maintenance for you, you might be better off with something closer to where you live.   A good option might be single family properties in Saginaw - they pay their own utilities and maintain their own lawns/snow removal, so it saves you time and money, and they're easier to sell if the need arises.  

Hello Mark. That is not a newbie worry at all, that's good business. An LLC protects you and your other assets from just the scenario you brought up. Better safe than sorry is always the way to go. Some investors keep each property under separate LLCs.

I offers exactly what you are looking for but I self promote in the forum. 

Try to Google property management Saginaw MI.  You should find someone there. 

Just a quick note on the Saginaw Landlords Association.  They are a phenomenal organization.  They handle everything you need to be successful in Saginaw.  They can run background checks on tenants but more helpful to us they keep files on tenants that other members have had. They can also track tenants who have skipped out if they rent from another member.  Kay is a notary public which makes the city water affidavits easier to complete. They hold monthly meetings and send out monthly newsletters.  I have 13 units in Saginaw and they make my life much easier.  I would recommend anyone renting properties in Saginaw to join.

Hi Corey, congratulations on being ready to purchase your first investment property.  I own several single family rentals and a couple of apartments in Saginaw, city and township. My advice on buying your first your is keep cost low.  Try to find a property that only needs paint and flooring.  There are plenty out there.  Make sure the mechanicals are all in good shape.  With rental prices not being real high, it's easy to have a bad roof or furnace blow your entire year of rental income.  Ellis Property Management is always around for advice and services if you need us.  Feel free to contact me.  Good luck and I hope the best for you.