In Michigan is buying a fixer upper home in a decent area & reselling or renting it a good investment?

Question

I am getting married in 3 weeks and my new husband and I are looking to start some investments together. We have the talents and resources to do most of the work in home improvement stuff ourselves. With the housing market so down in Michigan I am just wondering if fixing up and re-selling is a good idea. We could also try purchasing a couple homes to rent. Is this a good idea or would other investments be better?

Answer 1

Rentals might be a good idea, try to buy the houses at tax sales. Usually the person who owns this has died or has no more interest in them. Check it out with the court house.

Land is the better investment, and renting of storage units. That is growing, and their is very little maintenance to it.

One other idea, buy a house live in it as you fix it up, and when you get it fixed up like you want sell it. Hopefully the time would have past that you don't have to pay capital gains on it.

Answer 2

if your working in a slow market, the house would have to be massively marked down

you will be putting $20-30 k into this home to fix it up..and possibly holding for 6 months for a sale..

so if your young with few assets....move into the home and fix it and sell it..instead of renting..

if it isn't fit to live in then.....you know it is going to be big $$$ to fix up and wait for a sale......

"slow markets" are that....and even then the buyers want a good price on a top quality home..

other things are features that would make this home unique..
good neighborhood, type of home, large lot, large home, near stores, ..

good luck..
I wouldn't do it..unless the profit line was there..

Answer 3

I would not start investing in real estate right now. I know a couple in Lansing that did like you want to and they've been paying the mortgage on a house they can't sell for the last year.