The State of Michigan presents an interesting set of challenges and opportunities for house flippers. The median purchase price for fix and flips is considerably lower than most states in the US. This makes it a friendly option for beginners that don’t necessarily have access to huge amounts of capital.
With that being said, the low cost of homes in Michigan also means that your maximum resale value is limited. So while the risks are reduced, so are the rewards. Now let’s take a closer look at how to flip houses in Michigan.
Michigan House Flipping Stats
Median Purchase Price
Median Resale Price
Price Per Square Foot
Michigan Population Size
Median Household Income
High School Graduation
Travel Time To Work
Best Cities for Flipping Houses In Michigan
- Grand Rapids city
- Warren city
- Sterling Heights
- Ann Arbor city
Safest Areas In Michigan
- Rochester Hills – Safety Score: 90.61
- West Bloomfield – Safety Score: 90.27
- Royal Oak – Safety Score: 87.69
- Shelby Township- Safety Score: 87.58
- Novi – Safety Score: 86.84
Please note – All the statistics in this article are based on 2020 data. You can view the data sources at the bottom of the article.
The Basics Of Flipping Houses In Michigan
- Find a property in Michigan that is undervalued
- Source funding from a reputable hard money lender in Michigan
- Buy the property for a price that makes it possible to generate profit when it is resold
- Complete renovations that will increase the after repair value
- Find buyers for the property and sell it for a healthy profit margin
How To Find Houses To Flip In Michigan
1. Use FlipScout By New Silver
2. Leverage The Power of Wholesalers
Finding a good wholesaler can be very rewarding for a property flipper. Wholesalers tend to have access to all the most relevant property databases, and they often have unique personal networks. By using a wholesaler, you effectively gain inside access to their knowledge of properties in Michigan.
3. Attend Bank Auctions
Bank auctions often present opportunities to purchase properties below their market value. This is mainly because banks hold these auctions in order to sell the properties as fast as possible. If you attend bank auctions with a clearly defined strategy, you can potentially walk away with a new property that fits in perfectly with your investment portfolio.
4. Use Direct Mail To Find Off-Market Properties
Although it is considered an old school technique, direct mail can still yield positive results for house flippers. Direct mail has been shown to have a higher response rate than email, and numerous studies have shown that people actually enjoy checking their mailboxes. More importantly, you might be surprised by how many people have considered selling their homes. Your letter could be the trigger that they have been waiting for.
5. Sign Up To The Multiple Listing Service (MLS)
Even though MLS listings can be competitive, it is still a good avenue for finding properties to flip. The MLS is literally a database created by real estate agents, and it is filled with property details and statistics that can help aid your research process. There is a fee involved, but one deal is all you need to comfortably cover the costs.
6. Find Foreclosures
When properties fall into foreclosure, the primary goal of the loan originator is to recoup any potential losses. This is good news for house flippers, because properties in foreclosure often sell for less than their market value. If you are able to locate foreclosure opportunities in Michigan, there’s a good chance you will be able to purchase a property for less than its market value. This is why foreclosure can serve as a great platform for a potential flip.
Michigan Housing Market Analysis
House Flippers Are Selecting Mid-To-Lower End Houses: There is a reasonably large gap between the median home value in Michigan ($190,008) and the median resale price for house flips in Michigan ($168,670). This suggests that investors are generally focusing on the mid-to-lower end of the market where it may be more common to find poorly maintained properties.
The Revenue Per Flip Is Less Than The US Average: The average revenue per flip in the US is over $65,000. In Michigan, this figure drops down to $46,380. The net result is that you have to be extra careful when flipping houses in the Wolverine state. If you experience timeline challenges or the renovations are more expensive than expected, it could eat into your bottom line. Based on this, good project management skills are imperative for maximizing profitability when flipping houses in Michigan.
Home Values Appreciated By 9.2%: According to Zillow, home values in Michigan appreciated by 9.2% over the last year. Moreover, house prices in Michigan have been steadily increasing since 2012, although they did flatten out somewhat between 2018 and 2020.
For the foreseeable future, it’s reasonably safe to assume that Michigan house prices will continue to rise. This is mainly because historically low interest rates have kept the demand and appetite for properties high. In fact, you could go so far as to say the biggest problem at the moment is inventory. There are more buyers than sellers. This can make it difficult to land a house flipping deal, and it tends to drive prices upward.
Homes In Michigan Are More Affordable Than The National Average: The average home value in Michigan is $190,008. This is considerably less than the average home value in the United States, which is approximately $266,222.
The relatively low cost of homes in Michigan makes the market more accessible. You need less capital to get started, a condition which lends itself to first time flippers hoping to break into the property investing business.
Apply For An Investment Property Loan
If you’re ready to start your house flipping journey, New Silver Lending can provide the capital you need to fund your first flip. We offer ultra fast hard money loans with competitive interest rates and quick closing times. The entire application can be completed in less than 10 minutes.
If you’re committed to flipping houses in Michigan, the next step is to invest time and energy into finding the best possible property. We have outlined a number of methods in this post, and all of them can potentially bear fruit.
Once you have identified a property, using a reputable Hard Money lender like New Silver can help accelerate the house flipping process. Our company is built on speed, efficiency and user-friendly technology. The online application can be completed in less than 10 minutes, and we offer instant proof of funds letters to all of our clients.