All Forum Posts by: Martin Gilligan

I'm considering turning my parent's Howell, MI house into a rental and would like some information on the rental market there.

It's a 3 br/2 ba 1800 sq ft ranch house near Pinckney Rd and Coon Lake Rd (few miles south of town).  The rent estimator says it should get around $2000, but it's low confidence and most of the houses are in/around Howell, so I'm not sure how much weight to put into it.

What kind of rent should I expect?  How strong is the rental market there?  How does the rental market in Howell compare to out in the country?  Anything else I should be aware of?

We're planning to sell because of the expected negative cash flow. I included it in case there was something I was missing.

It's a 4 bedroom/2 bath house, just under 2K square feet in Old Colorado City.

We currently live in Colorado Springs, CO (own) and will be moving to the Chantilly, VA area later this year. We also have a rental property in San Antonio. We're planning to sell our Colorado Springs (current) house and use that money to invest in other rental properties. Also, we're planning to keep the San Antonio house (at least for now) and rent/buy in Virginia (have money set aside for that). We're looking to partially retire in about 10 years, so that's the main driver for our financial decisions (want ~$2,000 cash flow from rentals and enough to have a paid off house). I want to make sure we aren't missing anything that'd impact our overall strategy. Also, any recommendations on our investment strategy would be greatly appreciated.

We were fairly conservative in our analysis in regards to CapEx and repairs and maintenance. We used the BiggerPockets calculators.

For the Colorado Springs (current) house, we estimate we'll cash flow between $-340 (now) to $-125 (10 years) per month and make about $279,000 in profit if sold (10 years).  The mortgage is $212,000.

For the rental properties investment, we looked at multi-family houses in the Saginaw, MI area, primarily because I have family in that area.  We are open to investing in other areas and single family as well.  If we use cash only, we're looking at cash flow between $875 (now) to $1200 (10 years) per month and $375,000 profit if sold (10 years), between two multi-families.  If we use loans, we're looking at cash flow between $-55 (now) to $515 (10 years) and $390,000 profit if sold (10 years), between three multi-families plus extra cash to further invest in the beginning.