Hello dear investors...

After living in WA state for over 20 years, I decided that I want to relocate and move to a state where real state is more affordable. So, I’ve decided to look into the possibility of moving to Detroit by summer of next year. My two kids are adults now and living their own life.

The plan goes as follow:

Sell my main residence which should give me about $50k that I can invest, and I have about 90k in savings. Total of $140k to take with me to Detroit. I cash flow $1100 after expenses and after putting 10% aside for repairs per month on my other two rentals. I also have equity of 200k I can pull out of one of my properties if I need to.

I would sell all my furniture and get rid of everything before moving, I plan on just packing my personal stuffs and driving my car over there. I plan on getting an RBNB and pay for two months ahead before leaving. After that I’ll either keep paying and stay in the RBNB longer, or I’ll rent a small apartment. I would look for a job once I get there. I’m a license cosmetologist, so I can work at any hair salons. Also, by the time I leave I’ll be done with college, and I’ll have a degree in Business Administration and Accounting. I’m getting my real state license the soonest I’m done with college. ( No student loan debt) I feel like it wouldn’t be to hard to get a job, I’m willing to do whatever type of job to get me started and have a little extra money coming in every month.

I want to get familiar with the area, drive around, see the neighborhoods, talk to the locals, go to real state meetings, build a team, find a reputable contractor, look at many properties, and if after I do all of that I feel like I can move forward with my plan, then I’ll buy a cheap reasonable property that needs work and I’ll get it fix up so I can live in it. I’ll be paying cash for it, eliminating the biggest expense which is rent. I have no personal bills or debt other than my mortgages on my properties. I plan on house hacking my first property to get extra cash.

After that, I’ll repeat the same process, buy a property, fix it up, and put a tenant in there. I plan on managing the properties my self just like I do here in Washington. Hoping to find properties I can get about $500-800 in rent after fixing them. Long term goal, to have at least 10 doors that can cash flow $500-800 per month. I wouldn’t want to live in Detroit for the rest of my life, maybe five years, just enough time to adquiere properties and find a reputable management company I can trust to handle my properties. No little kids, no extra debt, so worse case scenario my plan doesn’t work, I’ll just bring my butt back to Washington.

Please tell me if I’m crazy for thinking that this could work!! I’m willing to take risk and just wanna see where this goes. I don’t know anybody in Detroit and don’t have an area pick out yet. I done tons of research about the real state market, jobs, and cost of living. Any advice would be greatly appreciated.

Originally posted by @Maria Luna :

Hello dear investors...

After living in WA state for over 20 years, I decided that I want to relocate and move to a state where real state is more affordable. So, I’ve decided to look into the possibility of moving to Detroit by summer of next year. My two kids are adults now and living their own life.

The plan goes as follow:

Sell my main residence which should give me about $50k that I can invest, and I have about 90k in savings. Total of $140k to take with me to Detroit. I cash flow $1100 after expenses and after putting 10% aside for repairs per month on my other two rentals. I also have equity of 200k I can pull out of one of my properties if I need to.

I would sell all my furniture and get rid of everything before moving, I plan on just packing my personal stuffs and driving my car over there. I plan on getting an RBNB and pay for two months ahead before leaving. After that I’ll either keep paying and stay in the RBNB longer, or I’ll rent a small apartment. I would look for a job once I get there. I’m a license cosmetologist, so I can work at any hair salons. Also, by the time I leave I’ll be done with college, and I’ll have a degree in Business Administration and Accounting. I’m getting my real state license the soonest I’m done with college. ( No student loan debt) I feel like it wouldn’t be to hard to get a job, I’m willing to do whatever type of job to get me started and have a little extra money coming in every month.

I want to get familiar with the area, drive around, see the neighborhoods, talk to the locals, go to real state meetings, build a team, find a reputable contractor, look at many properties, and if after I do all of that I feel like I can move forward with my plan, then I’ll buy a cheap reasonable property that needs work and I’ll get it fix up so I can live in it. I’ll be paying cash for it, eliminating the biggest expense which is rent. I have no personal bills or debt other than my mortgages on my properties. I plan on house hacking my first property to get extra cash.

After that, I’ll repeat the same process, buy a property, fix it up, and put a tenant in there. I plan on managing the properties my self just like I do here in Washington. Hoping to find properties I can get about $500-800 in rent after fixing them. Long term goal, to have at least 10 doors that can cash flow $500-800 per month. I wouldn’t want to live in Detroit for the rest of my life, maybe five years, just enough time to adquiere properties and find a reputable management company I can trust to handle my properties. No little kids, no extra debt, so worse case scenario my plan doesn’t work, I’ll just bring my butt back to Washington.

Please tell me if I’m crazy for thinking that this could work!! I’m willing to take risk and just wanna see where this goes. I don’t know anybody in Detroit and don’t have an area pick out yet. I done tons of research about the real state market, jobs, and cost of living. Any advice would be greatly appreciated.

Appreciate your gutsy decision. 

Yes Detroit offers a lot for the savvy property Investor. 

Be cautious of the Locations you are buying, and also buy only on Warranty deeds.

And the Detroit market is ripe for good Flips. 

As it is attracting a lot of Flippers in Detroit at the moment.

Areas between 7 and 8 Mile in the NW are just accelerating and the Banks have started to Lend in Detroit.

Which is Great news.

So house prices are moving steadily up, Flips are in the 70s and 80s price ranges, ARV of 120-130 after 10-15K work.

And seems like you are ready to swing - so good luck.

@Maria Luna I admire your courage and your spirit of adventure. 

There are a lot of markets in the us that are affordable and present opportunities similar to Detroit. Many areas of Indianapolis, Florida, Arizona, Nevada and Texas, to name a few, can provide you with similar opportunities.

I have some good friend who are wholesaling in the suburbs around Detroit and are killing it.

There will be competition in any emerging markets so make sure you connect with other investors and get a good handle on the opportunities. 

Maria,

No idea if the move makes good sense. Too many variables.

What I will say, you are definitely focused, appear committed to doing the homework and similar things which normally result in success.

As long as you are happy with living in Detroit (including the winters), go for it.

Have you considered any other city for the next chapter of your life? If so, why Detroit? It might be the best choice from a list. Just curious if you did think about alternatives.

In any event, good luck. Continue to reach out and lean on others when it comes to getting up to speed on the local market and best practices.

@Maria Luna ,

You know me in Detroit lol!!! okay maybe you dont, but you will  because here we take care of other real estate investors. I have full support in anything (I house hack so I can refer you to some people). This makes me really excited becasue I know you will do wonders when you get here. I said "when you" because I know you coming. I know many people here that be willing to help out. Just be ready for a lot of snow! The rest is easy lol 

@Bala A.

Thank you, I’ll continue to do my research and see where this takes me.

@Greg Dickerson

Thank you for your advice. I for sure plan on staying in touch with people from BP, and attend all the real state meetings I can once I get to Detroit.

@John Corey

Hi there,

I don’t know if the move makes sense either, all I can do is plan for any thing that could possible go wrong and have an exiting strategy. I’m sure that not everything is going to go as planed. I’m 41 years old and ready for something different, I want my freedom from an 8-5 job in the next 5 years or so.

I chose Detroit because after years of research I feel like I could get more for my dollar there. My second option was Jacksonville, but I feel like I can acquire more doors faster in Detroit. I’m all about the cash flow and I think I can get that in Detroit. I’ll continue to do my research of the real state market between now and then, and hopefully I’ll be there by next summer.

@Jamiel Strickland

Hey there Hey....

Thank you so much for all this kind words, I love it!!

Any help I can get once I get there is greatly appreciated. Be sure that I’m going to take you up on your offer. I’m so excited thinking about moving, I’m ready for something different in my life. Not to excited for the snow🙄🙄but I think I can handle it. If things go as plan, after the second year I should be able to get me an Airbnb in Florida for the winter months, and just fly to Detroit to check up on things once at month. What area would you recommend I get an Airbnb for when I get there?

@Maria Luna ,

You have to embrace the snow lol but I am not sure on the Airbnb never done one yet so dont want to give out bad info. Yea, when you get here be sure to reach out to me.

@Maria Luna

Hello. I did same thing. Moved from CA to Texas back in 2008 to buy RE full time. With cash in the bank and a focused game plan you will be alright. Enjoy the adventure and the journey. Moving to a new state or city is considered scary for many. Keep focused on the prize and don’t let negativity from others stop you. You got a wealth of BP members who invest there so you are not alone.

Best of luck

If you haven't already listened to Bigger Pockets Podcast #331 with Ashley Hamilton, I think you'll find it interesting!

My two cents with your plan is you might want to get a mortgage for your first primary residence in Detroit (when you have a job there), and pay cash for your first rental property, rather than the other way around.  Only because mortgages on primary residences usually have lower interest rates, lower down payment requirements, and are easier to get than mortgages for investment properties.  

But I also understand your reasoning about not wanting a payment for your own housing.  

@Maria Luna good luck! Here’s some inspiration!

https://youtu.be/U93ja4JahzI

@Jamiel Strickland

Gonna tried my best to embrace the show, I promise. Yes, I’ll reach out once I get there. Thank you I appreciate you.

@Luciano A.

Hello there,

That’s good to know that I’m not the only crazy enough to just pack and go.

Can I ask how did it go for you? Was it how you picture it to be? Did you get the results you was expecting?

@John Sharpe

Hello there,

I just listened to the podcast with Ashley. It was so inspirational to me and it made me want to move even sooner.

I appreciate your advice, and I’m for sure gonna look into all the options for purchasing my primary residence once I settled there.

I always tell people to buy like they are broke. Don't go and buy the most expensive house buy the cheapest house on decent street. That is almost if not move in ready. in Detroit your dollars can and will go far.

@Maria Luna I’m actually doing something similar. I’m moving back to my hometown in Indiana for a while to get more involved with real estate. I love Colorado and everything it has to offer but I can set my self up very good for the future by making this move compared to trying and doing that here in Colorado. I’m going home to build up a nice team and relationships and however long that takes (I’m thinking 5-7 years) and then make my way back out west. Glad to see other people out there doing whatever it takes for them to succeed. Best of luck to you and your journey!

@Maria Luna

Best choice I made. I was buying in the down market when I moved here. People thought I was crazy. Locals thought I was crazy for buying in areas that was not so great. Fast forward to today I got the last laugh. Properties that I was buying for $60-$80k is now worth over $250k. I just wish I bought more back then. I own about 83 doors and counting. I'm now in the process of building new SFR instead of buying and rehabbing. Just follow your gut, meet like minded individuals and you will do well.

@Bartley Malicoat

Hello there,

I think that that’s a smart move. Sometimes we just have to be brave enough and have some faith that things are gonna work out. I totally understand why you are doing it, it’s the same here in WA. Here you can’t find anything for less than 200-300k It would take me so long to be able to acquire the number of doors I want. And I for sure don’t trust anybody to invest out of state without me been there to see where I’m parking my money. I’m hands on and want to get familiar with the area, the neighborhoods, and the people. I truly believe that building relationships can make the process a lot smother.

Best of luck to you as well.

@Luciano A.

Wow, that is amazing! Your story has giving me more courage to just go on with my plan and move. I'm pretty sure that that's going to be me, buying houses in areas that other investors or locals might be afraid to buy. I was raised in the hood, so I understand that only because people are poor it doesn't always mean they are bad, and poor people need homes too. I plan on focusing on type B,C neighborhoods SFH that need work. I love it that you got the last laugh and how your properties appreciated in values. Did you had a lot of capital to invest when you first moved? Or did you just used banks?

@Maria Luna I love the vision. And the fact that you’re going to make it happen. The only suggestion I would have would be to househack instead of renting an airbnb. Link up with a great agent in the area and learn the market. Have them help you lock down a duplex/triplex which you could use a low down payment loan for(which will cash flow if you run the numbers right) and then using the remaining capital and your newfound market knowledge find your second property once you make the move.