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Michigan's rental market varies. Ann Arbor has extremely tight supply and strong rents. Grand Rapids and Kalamazoo have healthy rental demand. Detroit has improving but still challenging dynamics. Rural Michigan has limited rental demand. If your home is in a strong rental market and you don't need the equity now, renting has merit.
Beyond mortgage: property taxes (~2% of value/year in many Michigan cities), insurance ($1,200-$2,500/year for landlord policy), vacancy allowance (5-10% of annual rent), maintenance and repairs (1-2% of property value/year), and property management if self-management isn't practical (8-12% of rent). Net returns are often thinner than projected.
Michigan eviction typically takes 2-4 months minimum (notice → district court → hearing → judgment → writ). During this time, you may receive no rent while still paying mortgage and taxes. Detroit and some other Michigan cities have tenant-friendly local ordinances that extend this. Know what you're signing up for before becoming a landlord.
Consider: sell now and invest proceeds for income, use a 1031 exchange to reinvest in more landlord-friendly markets, sell to an investor and lease back the property short-term while you find alternative housing. There are creative structures — talk to a financial advisor and a Michigan real estate attorney.
Michigan rental properties must meet state habitability standards. Renting a home in poor condition may subject you to code enforcement complaints and could violate landlord-tenant law. If the home needs significant work before it's rentable, the cost of repairs to rent often exceeds what you'd get from just selling as-is.
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