Thinking About Buying a Rental Property in Michigan? Start With Your Investment Goals
- John Mogor
- Jul 29
- 3 min read
If you’re thinking about investing in a rental property, there’s one question to answer before anything else: What are you hoping to get out of it?
Most investors rush straight into the numbers, searching for high rent or low prices. But real estate works best when it aligns with your long-term financial goals, and that starts with a clear strategy. In this post, I’ll walk you through how I approach this conversation with clients and how I’ve used it in my own portfolio here in Grand Rapids.
Step 1: What’s the Outcome You Want Most?
Rental properties can serve many purposes. Some people want immediate monthly income. Others are looking to build long-term wealth. Some want to hold onto one solid property for decades. Others want to grow a portfolio fast. Knowing which path you’re on helps guide every decision after that.
Here are a few common goals:
Cash Flow — Income from rent that exceeds your monthly expenses
Appreciation — Value growth over time, leading to profit when you sell
Equity Building — Paying down your loan and increasing your net worth
Tax Benefits — Leveraging depreciation, interest deductions, or 1031 exchanges
Retirement Planning — Creating future income or a large asset base to sell later
Most investors care about more than one of these, but choosing a primary goal helps you narrow down what kind of property, financing, and location to pursue.
Step 2: Decide What You’re Willing to Trade Off
Every strategy comes with trade-offs. Higher cash flow often means more management and repairs. Strong appreciation areas tend to have higher prices and tighter margins. Here’s a quick comparison:
In my own investing, I’ve prioritized location and cash flow, choosing units that produce high yield on paper, require a bit more maintenance and have strong long-term potential. I spend a bit more active management time in exchange for better returns margins. Every investor is different, and your strategy should reflect your time, risk tolerance, and future plans.
Step 3: Consider Your Timeline and Next Steps
The next question is: How long do you plan to hold the property, and what needs to happen next?
Do you have capital ready, or need time to save or access financing?
Do you want to self-manage, or prefer to work with a property manager?
Are you planning to buy one unit or build a portfolio?
Knowing your timeline helps guide how aggressive or conservative your first deal should be. And it allows you to plan ahead for inspections, vacancies, capital improvements, or refinancing.
Step 4: Review the Market Through the Lens of Your Strategy
Not every neighborhood or property type fits every investor. That’s why I offer local insights and data-driven advice to help match you with the right opportunities.
For example:
If you’re looking for appreciation, neighborhoods like East Grand Rapids or Heritage Hill may be worth exploring.
If your focus is cash flow, certain pockets of Wyoming, Kentwood, or Southeast GR may perform better.
If you’re thinking about house hacking, where you live in one unit and rent out the others, I can point you toward duplexes or triplexes in areas with strong rental demand.
Need Help Defining Your Strategy? Let’s Talk.
Whether you’re buying your first rental or growing a portfolio, having a clear investment goal is key. I offer personalized consultations to help you:
Clarify your ideal outcome
Review market opportunities
Plan your financing and timing
