If you’re thinking about investing in Michigan real estate, let me tell you—it’s one of the best decisions you can make. I invest in real estate because I love the game, the strategy, and the opportunity to build something long-term. And if you’re serious about finding the best investment properties, you need to approach it with the right mindset and the right game plan. Here’s how I do it—and how you can, too.
4 Key Strategies to Help You Find the Best Investment Properties
1. Start Small, But Start Smart
First things first—don’t knock starting small.
Some of the best investors I know didn’t start with million-dollar apartment complexes. Instead, they started with single-family homes, duplexes, or even a simple condo. The key is to get in the game. Learn the ropes, make mistakes, and build from there.
Remember this: The best investment properties aren’t necessarily the biggest. In reality, they’re the ones that make sense financially and fit with your overall investment goals.
Related Video: Why You Should Start Small with Real Estate Investing
2. Do Your Homework—And Then Some
One of the biggest mistakes new investors make is trusting what they see or hear without verifying the facts. Don’t just take the seller’s word for it. Don’t even take your real estate agent’s word for it. Do your own due diligence. That means:
- Calling vendors to verify repair costs
- Speaking with the local tax assessor to confirm property tax projections
- Researching the neighborhood—talk to locals, visit at different times of the day, and check crime reports
- Running your own rental comps instead of relying on what someone tells you
At the end of the day, trust but verify. This is your money, your investment—no one will care about it as much as you do.
3. Invest Where You Live
I always tell people, “Invest where you live.” That’s because I believe buying the best investment properties in your own backyard makes them easier to manage, easier to inspect, and easier to scale. You understand the market better than an out-of-state investor ever could. If you’re in Metro Detroit, you already know the areas that are up-and-coming, which neighborhoods have stable renters, and where the best value lies.
4. Fear vs. Faith in Real Estate
Let’s talk about mindset. Fear is saying, “What if?” Faith is saying, “Even if.” There will always be risks in investing, but the biggest risk is doing nothing at all. If you’re waiting for the perfect deal, the perfect time, or the perfect market—you’re already behind. Take calculated risks, but take action.
My 2025 Investment Goals: Scaling, Retention, and Using Tax Strategies to My Advantage
For 2025, I’m focusing on a few key areas:
1. Renewal and Retention
“Keep the heads in the beds!”
It’s cheaper to keep tenants than to find new ones. That’s why I’m doubling down on tenant retention. Happy tenants stay longer, reducing vacancy costs and turnover expenses. I’m refining my processes to ensure tenants have a great rental experience. In some cases, that means only increasing rents slightly, even if I know I could get the going market rate.
2. Growing My In-House Management Company
“If you don’t know operations and management, you won’t last long.”
I used to rely on third-party property managers for my rental properties. But it wasn’t long before I learned this important lesson: A third-party manager will never take care of your business the way you will … because it’s YOUR money, not THEIRS.
I’ve already moved to in-house management but in 2025, I’m doubling down and growing that. Managing my own properties in-house means greater control, better efficiency, and increased profitability. If you’re serious about scaling, consider bringing management in-house.
3. Scaling and Selling to Grow
Sometimes, even the best investment properties need to be sold if doing so can free up capital for better investments. For example, it wasn’t long ago that I sold four of my cash flowing duplexes to purchase a 56-unit apartment complex. The duplexes weren’t underperforming but by selling them, I got the capital needed to buy a larger deal while also simplifying operations.
Watch this video to learn more: Why I Sold All My Single Family Rentals to Buy a 56-Unit Apartment
In 2025, I’m looking at strategically selling properties to reinvest in higher-yield assets that are also in line with my goal to grow to 1,000 units. Remember that real estate is a long game—sometimes, you need to reposition your portfolio to maximize returns.
4. Utilizing Tax Strategies to Keep More Money in My Pocket
Investing in real estate offers powerful tax benefits, and I plan to continue to take full advantage of that in 2025! If you’re not leveraging tax strategies to your advantage, you’re leaving money on the table.
Watch this video to learn more: Invest in Real Estate to Stop Paying Taxes
Looking for the Best Investment Properties in Metro Detroit? Work with the Stephan Group Brokerage
Michigan’s real estate market is full of opportunity—but only for those who are willing to put in the work. Start small, do your homework, and always think long-term. Real estate investing isn’t about getting rich overnight. It’s about making smart, consistent moves that build wealth over time.
Are you ready to start investing in real estate? We are real estate investors working for investors. I created The Stephan Group Brokerage to help investors find, analyze, and negotiate great deals, as well as operate their real estate portfolio here in Metro Detroit. If you are looking for the best investment properties, contact us today and work with the experts to realize your investment goals.
