Is it worth investing in Michigan City? (Gary, Chesterton: section 8, real estate)

[jblack]

I am looking to purchase a real estate investment in Indiana or Wisconsin. We found a few in Michigan City but are not sure what the area is REALLY like. I got the feeling it was all lower income which is fine, however if there is no industry in the area my concern is that we will not be able to find renters that are consistent in paying the rent. Can anyone tell me about that area? Have I just not seen a real picture of the town?

[jones-n]

Anywhere near the water in MC will be a good buy. The casino and the outlet mall are pretty much the only thing going for the area. Since you are out in that area check out Valpo and Chesterton, great growth potential.

I also like the Miller Beach area, it is on the far east side of Gary where the Indiana State Dunes begin. Houses that are a block from the lake have just about doubled in value in the past few years. Houses on the lake are selling for almost a million. Lots of new houses and rehabbers are buying up the area for summer homes for Chicagoans. Its diverse but safe.

[larajla]

My FIL has quite a few few properties that he rents in Michigan City.

He does Section 8 (I think that's what it's called) because he had a lot of problems with his renters . . . even when he did a full check on them before renting to them. This way, if there's a problem he has some leverage to get it fixed instead of everything coming out of his pocket.

He's been stuck not only with unpaid rent but damages, unpaid utilities, etc. Taking them to court is nothing but a piece of paper because they don't have the money to pay for what they did and they know this.