Grand Rapids Rental Case Study

So, I’ve been super happy with a rehab project I did on a remote rental property in Grand Rapids, and I want to share with you—at a high level—how I got the deal and how some of the numbers played out.

Hey Moguls, Matt Andrews here, with a quick-and-dirty step-by-step walkthrough…

Step 1: Market Research

Well, we started at the beginning: market research.

Listen, any time you're investing in a new market, you need to find out:

what investors are paying for properties
how much you can rent properties for
what you can sell properties to other investors for

I did my market research and found a cozy 3-bedroom house—along with a bunch of others—that I made offers on, based on that critical market research.

Step 2: Offer

I got in touch with a Realtor. This person is obviously local and could put my offers in for me. She knew the kind of deals and properties I was interested in and was able to handle doing some of the back and forth counter offers.

Okay, let’s do a little math to make this interesting…

This property was listed for $15,000.

There were actually a LOT of people interested in this house... but I was able to get my Realtor to talk to the owner, whom she happened to know. So my Realtor told the owner I was a cash buyer and ready to go… and I could close in just 2 days.

So I got the deal. For $12,500. That was my total purchase price.

And, while I was looking at other properties in the area, I was also working with a local contractor to make plans to rehab the property I just bought. Plus, I was setting up property management during that time too. (More on those in a sec.)

Step 3: Close

So, I had left Michigan and was back in Florida… and I simply wired the money to close on the property.

rental Then, it was mine. I now own it.

Step 4: Rehab

The rehab crew came in the house and did a full estimate of what it would cost to fix up the place.

I figured it would be between $10k-$15k…

After they looked at the house and all the numbers, I was looking at about $11,000-$13,000 (depending on a few variables).

I okayed the costs and the crew got to work. And boy was I happy when they finished their work—it looked great! And that meant, I could rent it out…

Step 5: Property Manager

Next, I needed to get a property manager who could rent it out and make it a cash flow property.

I’ll be renting it out for $750-$850 per month.

Final Numbers

With all the numbers in… I have about $25,000 total invested in the property—and with the expected monthly rental income, it’s going to be great cash flow!

These are the types of deals that I'm doing ALL the time now in Grand Rapids.

And one final important note to remember as you do these kinds of rental deals…

As you can see, while I was looking at other properties in the area and making offers, I was still moving things forward with this specific deal…

The whole time I was setting up my local team (Realtor, contractor, rehab crew, property manager) at every point throughout this rehab deal process.

That’s how I’m able to do multiple deals at one time. You can too.