All Forum Posts by: Ryan Anderson

2/2 Condo in Traverse City, Michigan generating positive cash flow as a short term rental.  Comes fully furnished with high end furnishings, including coffee bar and Sauna.  First floor access so guests are not dependent on stairs or elevator.  Listed at $419K.  Link to details below

https://s.paragonrels.com/goto/FtepfM

Contact me for any further information or questions: [email protected] | 231-409-6485

Sounds good @Nicholas Knaebel!  I'll message you my contact info and we can setup some time to talk.

@Chad Williams are you looking to do short term rentals with the property, or long term rentals?  If you are looking for short term rentals, let's connect.  The Mitten Group Property Management in Traverse City specializes in the short term rental market for both condo and residential properties.  The management fee is very competitive as well, and run by experts that know the market well.

Hi Nicholas, The Traverse City and surrounding areas, as well as Charlevoix, Petoskey and Harbor Springs are great locations for short term rentals. Winter (Jan-Feb) tend to be to be the slower times, however Spring, Summer and Fall do very well. Most investors here are looking for 20-40% cash-on-cash returns from cash flow, which are fairly typical here. The main challenge is making sure to buy in a location where the townships or HOA's don't restrict short term rentals. There are some new condo projects in Traverse City that will make great short term rentals also, and they are zoned for allowing short term rentals. Let me know if there are any specific details I can help you out with.

Hi @Glenn Gruschow, I'm very familiar with the STR market in Northern MI, especially around the Traverse City and surrounding areas up to Charlevoix, Petoskey, and Harbor Springs. I own STR's myself as an investor, and I'm a buyers agent helping other investor find their ideal STR or long term investment property. You are absolutely correct about the importance of understand which townships allow STR's, and also knowing the HOA restrictions for specific areas as well. STR's are a great investment in this area, occupancy rates are extremely high in the summer, and very high during the spring and fall. Winter occupancy is lower than the other seasons, but still produces income. Let me know if there is anything I can help you out with, or if there are specific areas, prices ranges, cash flow goals, or cash-on-cash returns you are looking for. I'm also involved in new development in Traverse City on Condo units that are zoned to allow STR's. Pre-bookings for some of those condos will be in full swing later this year. Let me know if you have any specific questions related to STR's.

Ryan Anderson, REALTOR with the Mitten Real Estate Group, Brokered by eXp Realty

Hi @Melody Everett-Neddo, the BRRR property is under contract. The duplex is currently listed. Let me know if you are looking for more details. There is going to be a multi-family (2-unit) property that will be listed end of this month in Cadillac if you have any interest.

Hi @Dandan Weinrich, I have not used Cash on Purchase Price as a metric before, I use mainly cash on cash return as my key metrics for long term rentals.  I just ran some quick calculations on annual cash on purchase price return, and the ranges I'm seeing are 2-3%.  What I mainly look for is cash on cash return of between 10-20%, which is definitely doable on long term rentals, especially if you factor in current rents and what rents can be raised to because the current landlords have not kept up with market rates.  Also, a lot of times you can shift some or a portion of utilities to tenants going forward and that gets you into the 20% cash on cash range (if the landlord is currently paying part of the utilities or all in some cases).

You are correct, downtown returns are definitely dropping due to the price increases. However downtown has restricted STR's and only allows them in specific zoning, so there are limited options making the demand high. With price appreciation + principal debt pay down + depreciation + positive cash flow, the overall investment is still good at the higher price points. Just not as good as it was 1-2 years ago.

Hi @Taylor King, STR's do excellent in the Traverse city area and surrounding areas. I have 3 downtown and the occupancy rate is good during the winter, and excellent in the summer. I also have several long term rentals in the Traverse City and surrounding areas. I have never done the BRRRR strategy with my long term rentals, I generally look for properties that may need some minor repair work, or very minimal updating, but are currently at below average rental rates. Tenant demand for long term rentals is extremely strong, there is a huge shortage of available rentals on the market.

I have been helping a few client find lakefront STR's. You need to pay very close attentional to township rules/ordinances. Right now lakefront is in extremely high demand. Multiple offer situations, well above asking price, and the majority are going for cash with a quick closing as soon as title work completes. So that market is very difficult to compete in, but i have written up creative offers for clients and won a few of the bidding wars on lakefront.

If you are looking for long term rentals in the Northwest Michigan and Traverse City surrounding areas, I know a few on the market that could be good opportunities. They are mainly 2-4 unit (small multi-family) properties. There is also a phase 2 of a new build condo in downtown traverse city zoned for STR's, so that could be an option as well if the numbers work out to your expectations. Let me know if there is anything I can help you out with.

Hi @Tracey Wittke, the off market duplex is near the Central Lake area.

If you are looking for a Buyers Agent to help you find single-family or multi-family homes or investment properties in Northern Michigan, I would love to help you out. I'm aware of an off-market duplex that is going to be listed soon, but entertaining off market offers. An On-market duplex also recently came on my radar that looks like an excellent BRRR property. Reach out if you are looking for a Buyers Agent to help you out. I can be reached at: [email protected]