Tips for Investing in Kalamazoo Foreclosures as Investment Properties in the Kalamazoo MI Area

by Kalamazoo Foreclosure Expert Joel Nelson

Investing in rental properties can be a lucrative opportunity in the Kalamazoo area.  There is no shortage of tenants and the prices have come down significantly, especially on multi-family properties.   In this article, we'll go over several tips to ensure you choose the properties that'll result in the best returns on your investment.  

Generally speaking, the best deals we find are the bank owned homes in Kalamazoo and to a lesser extent the Portage MI foreclosures.  We are able to uncover extremely lucrative opportunities in single family homes that need some work.  We've found single family homes for as little as $5,000.  Under $10,000 is not uncommon at all.

After reading this article, you'll know some of the more common pitfalls to avoid with properties in Kalamazoo, as well as the signs to look for in a great investment property.

Tip #1 - Look at Surrounding Properties

If you're buying your property to rent out, one of the most important steps you could take is to look at the rent market in the surrounding area.

What are units like yours renting for right now? Take 3-5 units that are similar to the unit you're considering your investment and average them out.

Would the income from this property be enough to cover your expenses?

If your interest is to flip the property for a profit, then obviously a different set of rules will apply.  You want to be able to accurately estimate your costs to re-hab the property and of course the value of it after the re-hab is complete.  If you do some of each type of Kalamazoo real estate investing, then you are in the position of being open to many more opporutunities.  Some properties are meant to be income properties, others are incredible flips.  While others are extremely attractive opportunities to buy for yourself, your family or your friends.

Tip #2 - Be Conservative

Be very conservative when you're calculating your numbers. It's far better to overestimate your numbers and accidentally make more money than it is to underestimate your numbers and find yourself draining cash.

Remember to account for vacancies and maintenance costs. These costs don't accrue all at once, but when they do come they can be large expenses.

Tip #3 - Check Your Rental History

How has your unit(s) been renting out over the past years? How strong is the rental history?

If in the past the unit(s) has been consistently rented out with few vacancies, that's a good sign that the unit(s) aren't difficult to rent out. If the opposite is true, that should be a red flag to take into consideration.


Tip #4 - Take the Low Hanging Fruit

Properties in the Kalamazoo MI area market often have what I call "low hanging fruit" opportunities. These are improvements you can make to your unit that will immediately improve its sale value or rental value.

Some of the more obvious ones include steam cleaning the carpets, painting the walls, making necessary repairs, having tiles cleaned and so on.

The key is to tackle the repairs that will give you the highest return for the least amount of work. The idea is not to repair every little thing, especially if it won't give you a positive ROI.

There is a lot of free information available to you about buying, selling or investing in Kalamazoo real estate.  For complete information about the Kalamazoo MI real estate market including Kalamazoo homes for sale, property values and more, please visit the most complete website dedicated to finding the best deals on Kalamazoo foreclosed home real estate opportunities.  See for yourself, visit http://KalamazooForeclosedHomes.com

For a FREE Weekly List of Homes For Sale Kalamazoo and surrounding areas, you may fill in the form below and we will compile a list from our three wholesale databases and send them to you right away.

Just fill in the form below with your correct name and e-mail address and we will e-mail you the list.

You may specify in the comments box if you have a particular interest in Kalamazoo foreclosures, or Kalamazoo HUD homes for sale. 

If you or someone you know are in need of a competent and caring Kalamazoo real estate professional in or near Kalamazoo MI, I hope you will contact me.

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 Tags: kalamazoo foreclosed homes, kalamazoo foreclosures, portage mi foreclosures, kalamazoo bank owned homes, joel nelson

Article's Author

Joel Nelson
Keller Williams Realty - Kalamazoo
Kalamazoo, MI

Contact Joel Nelson