With Michigan setting new standards on the word ‘cheap’. It is no surprise it has caught many investors attention. Houses are in price ranges that haven’t been seen in decades. The big question most real estate investors want to know is whether or not this mismanaged real estate disaster is a moneymaker or an investor’s worst nightmare? The overall consensus is don’t give up on investing in Michigan just yet. Investors who get to know the Michigan market have learned to be keen on renting, not flipping. Michigan property isn’t seeing any type of positive appreciation yet, even when properties are bought for pocket change. On the other hand, rent prices in Michigan are holding up better than purchasing prices. Basically, all the people who lost their homes still need a place to stay. That is when renting, in markets like Michigan, are a much stronger option than flipping. Nonetheless, this isn’t a green light to go crazy and buy up all the cheap properties in Michigan. Buyers must do their homework before buying a property with a low price tag.
When the market crashed in Michigan looters went wild. Most properties need a lot of work and a lot of necessities replaced, such as, furnaces, water heaters, windows, and doors. A lot of these properties have a lot of foundation damage as well. This damage must be renovated before the house can be safe for tenants. It’s never a bad idea to take a contractor with you when you go property shopping to help you choose the best property for your investment. Overall, Michigan is still an option, as long as you are a smart investor who has done their homework.