What are you seeing in the market?

Question

New to investing and relocated to the Metro Detroit area. Joined BP because I am eager to learn and soak in as much information about the industry to assist my future clients on their investment properties. Would like to hear what are some key things to be aware of in this area when selling/buying properties? Are you seeing more investors stepping in to the Detroit market ?

Travis Biziorek · Answer

Hey Francys, I've been investing in Detroit since 2019 and I've also been working with investors for the last 18 months.

The sentiment has drastically changed over time and here's how I'd sum it up.

In 2019, when I purchased my first rental in Detroit proper (not the suburbs), I was told that I was crazy. Locals strongly advised I don't do it, saying I'd get destroyed. And when I mentioned Detroit on BP I'd be ridiculed. It got to the point I just stopped wanting to talk about what I was doing with people and other investors.

By 2021 I had found a decent group of local investors that were doing the same thing I was. Today, these folks are my core network and absolute best friends. I work with some of them on a daily basis, I partner with them on deals, etc.

By 2023 I started working with other investors that were what I would call "Detroit curious". They were attracted to the potential for cash flow, largely because so few markets would cash flow any more with higher rates. Folks started investing, visiting, and learning the market and discovering there was something interesting happening.

About six months ago my investor conversations started really changing. Yes, people were/are still interested in the cash flow. But they started talking a LOT more about appreciation. They saw the data or had friends experience good success. Then the city made headlines as the highest appreciating market in the country, edging out Miami.

So now, today, Detroit is no longer viewed simply as a cash flow market. Folks are seeing it as the turnaround story that has been happening for the last 10 years. They are seeing the potential Detroit has for outsized appreciation as that story continues to unfold and take root as the new narrative.

And they love the fact that they can still get cash flow.

For a benchmark, we did 200 transactions in Detroit in 2023. This year we've already exceeded 100. So yes, more investors are starting to pile into Detroit but it's still very much early.

Bobby Noubiap · Answer

Thank you @Michael Smythe

Detroit, MI is my last option but within my radar due to my low budget. I definitely want to be in a B or C neighborhood area since I have a low budget and capital but don't want the headache of bad neighborhood unsolvable problem, bad tenant to potentially deal with eviction and late rent. How do I get the data?

Bobby Noubiap · Answer

@Kevin Hintz thank you! I am targeting the following areas (suburbs/downtown): 1: Phoenix, AZ 2. Columbus, OH 3. Myrtle Beach, SC and my last 4. Detroit, MI. The goal is all time positive cash flow, decent appreciation as LTR to buy and hold. It will be my 3rd property but 1st rental rodeo. I am reading my 1st book on rental property investing and networking for investor, realtor and property manager. I am happy to have found the BP. The vision is becoming a reality but I am still at the planning phase and analyzing deals to ensure the numbers added up after all expenses is my culprit right now...

Kevin Hintz · Answer

Here's the thing about analyzing deals, it can be a real learning curve. Those numbers you mentioned (ROI, CoCROI) are important, but they're just part of the puzzle. Factor in vacancy rates, property management costs, potential repairs, and even things like lawn care. It all adds up.

Good luck with your first rental property in Michigan! Detroit's a dynamic market, so do your research and don't be afraid to ask questions.

Francys Ramirez · Answer

Wow Travis, this was very helpful and appreciate the insight of what is to come!

Francys Ramirez · Answer

I am looking to begin working with investors and eventually start my won portfolio!

Michael Smythe · Answer

@Francys Ramirez Detroit is a VERY popular market for OOS investors.

Will you be looking to buy/sell for yourself or other investors?

Bobby Noubiap · Answer

@Kevin Hintz yeehaww interest rates are lower and saving account growing for capital and I have chosen couple of class A and B neighborhood in Myrtle Beach, SC and the Washington DC areas to buy from; also met some realtors and getting familiarized with those area landlord/tenant laws. I have a lot going on and between now up to 04/2025, I can pull the trigger. What is new with you?

Kevin Hintz · Answer

It's been 2 months, any success? I'd like to hear how you're doing

Michael Smythe · Answer

@Bobby Noubiap PM us please so we can discuss privately:)

What are you seeing in the market?

What are you seeing in the market?

Most Popular Reply

13 Replies