Moving from San Diego to Detroit. (Advice/Opposing Views Welcome)

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Moving from San Diego to Detroit. (Advice/Opposing Views Welcome)

Jeff Marzo
Developer · Detroit, MI · Member since 2013 · 86 posts · 23 votes

"If you want to grow, get out of your comfort zone."

Hello all. I wanted to start this thread as a marker for the decision I made about two weeks ago after visiting family in Detroit for two weeks (and multiple prior visits over the years). While living in San Diego all my life, I have been investing in San Diego over the past 6 years through land wholesaling, infill SFR development, and other businesses outside of REI, what I saw during my last visit opened up my eyes to opportunities.

While taking time to drive through suburban areas in Detroit, I saw multiple infill lots, multiple new builds sold, and tons of MF properties in growing neighborhoods that have legitimate occupancy. I saw abandoned commercial properties in up and coming neighborhoods, etc. I am going to take a chance. Screw it.

While some may be skeptical of Detroit, I've read enough about analyzing markets to see so much potential in Detroit. I believe in Detroit. Detroit will have its Day again. It's not far off, as I see multiple companies coming in, talked with multiple investors in the area, as well as seen new commercial and residential development and rehabs all over. My Overall goal? Commercial development; big multi-family development/rehabs & mixed use spaces.

Looking to connect with local wholesalers, developers, contractors, architects, brokers, and other buy/hold investors.

Any positive/constructive feedback, comments, advice, etc is always welcome. Otherwise, enjoy following this journey we call life!


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Grant ShipmanPro Member
Rental Property Investor · Estes Park, CO · Member since 2017 · 283 posts · 1k+ votes
7y

Beyond HouseHacking works really well in strong and struggling economies.  It is not commercial like you said, but you may want to consider it for Detroit. 

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  • Grant ShipmanPro Member
    Rental Property Investor · Estes Park, CO · Member since 2017 · 283 posts · 1k+ votes
    7y

    Beyond HouseHacking works really well in strong and struggling economies.  It is not commercial like you said, but you may want to consider it for Detroit. 

    5Reply
  • Jeff Marzo
    OP
    Developer · Detroit, MI · Member since 2013 · 86 posts · 23 votes
    7y

    @Grant Shipman Oh yeah, I absolutely agree. I was actually just having a talk with my girlfriend and her sister  owns 8 houses out there and rents them all out by the room. Today I spent a few hours looking at properties (just to get used to the markets and what comes with those prices). Thanks for sharing. Great chart too.

    0Reply
  • Travis Biziorek
    Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
    7y

    I relocated to Troy (metro Detroit) 2.5 years ago with my family. We came from the San Francisco Bay Area after living there for ~14 years. My wife grew up in LA.

    First thing first: you will want to move back. We grossly underestimated the weather here, even though I grew up in northern Michigan. In short, we're not certain we'll stay here forever. But you can get far more house for you money, and that helps.

    OK, now the opportunity. I see what you see... opportunity for real estate is everywhere here. Detroit is coming back, hands down. It's already started, and lots of locals are in denial because they're too close to the trees to see the forest. The savviest folks I meet are the ones that are relatively young yet and grew up in Detroit, or those coming from other areas and feel/see the energy.

    Nobody will deny that metro Detroit (the suburbs) has come back strong. But most still aren't convinced it's happening for the actual city. I'm betting we see the first population increase in 70 years when the 2020 census comes out, and then you'll have national headlines touting the "resurgence of Detroit" that's already been underway for 5+ years.

    I think it's a fantastic move if you have the flexibility to do it. 

    0Reply
  • Tim G.
    Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes
    7y

    Sounds like an exciting decision. One piece of advice, don't tell people you moved there from California. It's like walking around with a "kick me" sign on your back.  Detroit is awesome, the great lakes are amazing, summers are beautiful... winters are never ending. 

    3Reply
  • Daniel Pierson
    Investor · San Francisco, CA · Member since 2015 · 75 posts · 25 votes
    7y

    Congratulations on taking the leap, @Jeff Marzo! How much of your own capital will you be using initially if you don't mind me asking?

    0Reply
  • Jeff Marzo
    OP
    Developer · Detroit, MI · Member since 2013 · 86 posts · 23 votes
    7y
    Originally posted by @Travis Biziorek:

    I relocated to Troy (metro Detroit) 2.5 years ago with my family. We came from the San Francisco Bay Area after living there for ~14 years. My wife grew up in LA.

    First thing first: you will want to move back. We grossly underestimated the weather here, even though I grew up in northern Michigan. In short, we're not certain we'll stay here forever. But you can get far more house for you money, and that helps.

    OK, now the opportunity. I see what you see... opportunity for real estate is everywhere here. Detroit is coming back, hands down. It's already started, and lots of locals are in denial because they're too close to the trees to see the forest. The savviest folks I meet are the ones that are relatively young yet and grew up in Detroit, or those coming from other areas and feel/see the energy.

    Nobody will deny that metro Detroit (the suburbs) has come back strong. But most still aren't convinced it's happening for the actual city. I'm betting we see the first population increase in 70 years when the 2020 census comes out, and then you'll have national headlines touting the "resurgence of Detroit" that's already been underway for 5+ years.

    I think it's a fantastic move if you have the flexibility to do it. 

    Absolutely and thanks for the feedback. Fortunately, I definitely have flexibility since nothing really ties me down to any one location. It's funny about the weather. That's the one thing that used to keep me away from moving to Detroit. However, I've been in harsh winters before and maybe I'll travel that time of year, or who knows, right? I figure I shouldn't let weather stop me from what I am looking to do.

    0Reply
  • Jeff Marzo
    OP
    Developer · Detroit, MI · Member since 2013 · 86 posts · 23 votes
    7y
    Originally posted by @Tim G.:

    Sounds like an exciting decision. One piece of advice, don't tell people you moved there from California. It's like walking around with a "kick me" sign on your back.  Detroit is awesome, the great lakes are amazing, summers are beautiful... winters are never ending. 

    Sounds like you've had your fair share of Detroit. Thank you for the advice.

    Damn, too late. I have been putting more emphasis on networking out there and making some connections before I visit again in December. Of course, moving forward, that is definitely great advice and will consider that as I continue to connect with others. Thanks again

    0Reply
  • Jeff Marzo
    OP
    Developer · Detroit, MI · Member since 2013 · 86 posts · 23 votes
    7y
    Originally posted by @Daniel Pierson:

    Congratulations on taking the leap, @Jeff Marzo! How much of your own capital will you be using initially if you don't mind me asking?

    I am mainly going to be only relying on my own capital/credit initially so I can proven results in that market and then as deals come through, I plan to bring those deals to a some of my San Diego connection who don't have the necessarily funds to invest in San Diego, but they have enough to invest in Detroit cash flow properties.

    0Reply
  • Andrew Alson
    Realtor · Ann Arbor, MI · Member since 2018 · 6 posts · 4 votes
    7y

    Welcome to Michigan, Jeff. If you’re moving soon in time for winter, then that’s something to look forward to right there. Detroit is very block-by-block and street-by-street so learn the city! There’s money to be made. Good luck.

    1Reply
  • Jordan Jones
    Rental Property Investor · Temecula, CA · Member since 2018 · 36 posts · 21 votes
    7y

    Hi Jeff, welcome to Detroit! I moved to Detroit 9 years ago and have loved every day of it. Like some others have said, Detroit is really block-by-block so just make sure you really get to know the neighborhoods. Also, if you're doing a buy and hold in Detroit proper, there are some somewhat unique regulatory requirements that they don't have in some of the surrounding communities. So look into that too! Good luck, and again, welcome.

    1Reply
  • Tanner Marsey
    Rental Property Investor · San Diego, CA · Member since 2017 · 439 posts · 578 votes
    7y

    Eh. If you’re moving strictly for RE opportunities I would stay in SD. If you have other reasons to move then I’d consider it.

    Keep in mind EVERYWHERE has been good for the last 10ish years. We will see what happens to Detroit in the next down turn, dip, recession, slow down or whatever you want to call it. It’s a gamble still. Could win big, could lose your shirt.

    Personally.... the winters there are enough to make me stay away regardless of the opportunities.

    1Reply
  • John Cornelius
    FL · Member since 2019 · 73 posts · 54 votes
    7y

    Great decision! While others in SoCal are guffawing about "maybe someday investing in Real Estate" you'll be adding doors like a savage.

    1Reply
  • Tim G.
    Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Jeff Marzo:
    Originally posted by @Tim G.:

    Sounds like an exciting decision. One piece of advice, don't tell people you moved there from California. It's like walking around with a "kick me" sign on your back.  Detroit is awesome, the great lakes are amazing, summers are beautiful... winters are never ending. 

    Sounds like you've had your fair share of Detroit. Thank you for the advice.

    Damn, too late. I have been putting more emphasis on networking out there and making some connections before I visit again in December. Of course, moving forward, that is definitely great advice and will consider that as I continue to connect with others. Thanks again

    My pleasure, I grew up not far from Detroit and it was my stomping grounds for shows and cruising. Some friends have built impressive portfolios there over the years, its definitely block by block and you're not far from some other great opportunity zones like Grand Rapids. 

    1Reply
  • Anthony Rosa
    Rental Property Investor · New York City · Member since 2019 · 703 posts · 538 votes
    7y

    @Jeff Marzo -Just the weather alone, San Diego has the best temperatures in the entire country.  When it snows in NY I think of San Diego, lol.  Big trade off and total opposites from climate to housing.  Looks like you have your goals planned out so go for it, Best of Luck!!

    1Reply
  • Jeff Marzo
    OP
    Developer · Detroit, MI · Member since 2013 · 86 posts · 23 votes
    7y
    Originally posted by @Andrew Alson:

    Welcome to Michigan, Jeff. If you’re moving soon in time for winter, then that’s something to look forward to right there. Detroit is very block-by-block and street-by-street so learn the city! There’s money to be made. Good luck.

    I actually plan to visit for a portion of the winter, but plan on skipping the snowy months. Thanks for the advice for sure. 

    1Reply
  • Jeff Marzo
    OP
    Developer · Detroit, MI · Member since 2013 · 86 posts · 23 votes
    7y
    Originally posted by @Tanner Marsey:

    Eh. If you’re moving strictly for RE opportunities I would stay in SD. If you have other reasons to move then I’d consider it.

    Keep in mind EVERYWHERE has been good for the last 10ish years. We will see what happens to Detroit in the next down turn, dip, recession, slow down or whatever you want to call it. It’s a gamble still. Could win big, could lose your shirt.

    Personally.... the winters there are enough to make me stay away regardless of the opportunities.

     I feel you on that. The weather was definitely what kept me in San Diego my whole life. Although, I do have it in my plans to fly out of Detroit during the snowy months also, so that'll work out. All in all though, I guess it comes down to the question, "is the juice worth the squeeze?" I'm sure if the right opportunity came around, we all decide on what they're willing to sacrifice and/or planning around it (in this case, the weather can't hold me back anymore).

    0Reply
  • Jeff Marzo
    OP
    Developer · Detroit, MI · Member since 2013 · 86 posts · 23 votes
    7y
    Originally posted by @Anthony Rosa:

    @Jeff Marzo -Just the weather alone, San Diego has the best temperatures in the entire country.  When it snows in NY I think of San Diego, lol.  Big trade off and total opposites from climate to housing.  Looks like you have your goals planned out so go for it, Best of Luck!!

    Absolutely agree, the tradeoffs are definitely something that was a difficult decision (Trust me, I definitely plan to have heating in my home). However, since we love to travel, we don't plan to be out there year round, or forever. The plan is to head out of town every February through March timeframe. During the other months, BRRRR properties and development new homes when those opportunities arise.

    1Reply
  • Jeff Marzo
    OP
    Developer · Detroit, MI · Member since 2013 · 86 posts · 23 votes
    7y
    Originally posted by @John Cornelius:

    Great decision! While others in SoCal are guffawing about "maybe someday investing in Real Estate" you'll be adding doors like a savage.

    Sometimes you just gotta bite the bullet and take that first step. I already know some other guys in San Diego that plan to head out that way. They don't have enough funds or resources for SD. But they definitely have enough for the low 3% down payments and a $30k house in Detroit that actually produces pretty decent cashflow and equity. I guess what I am feeling about the area is the opportunity it creates for those those with limited resources to cash or deals.

    0Reply
  • Mark Doty
    Developer · San Diego · Member since 2018 · 65 posts · 75 votes
    7y

    @Jeff Marzo Good luck! You should definitely find an easier time reinvesting with the BRRRR strategy, but those winters are brutal! The commercial multifamily space should have a much easier entry point also. There are certainly attractive elements of cash flowing markets but huge tradeoffs from a quality of life perspective.

    1Reply
  • Lyndsey Sass
    Real Estate Agent · Detroit, MI · Member since 2019 · 6 posts · 6 votes
    6y

    Hey Jeff. Do you know how cold it gets here? Lol, make sure you have survived a Michigan winter before you make the jump :)

    As with any major city, knowing the "hood" and the "good" is your highest priority. If you decide to use an agent/broker, ensure they have experience in the City and can guide you toward the best spots (without blatantly red-lining of course!) Many don't know but can talk a good game over the phone to make it seem like they do. One block can make all of the difference. In my opinion, if the neighborhood doesn't a have a "name"--don't buy there. There are plenty of deals (even listed on the MLS) in the stable areas that there is no need to take a chance speculating on an up-and-coming neighborhood panning out.

    Also, I agree with the earlier post that you shouldn't make it clear you are from California. Stay low key so you won't be bait. If you ever have any questions I'd be happy to help you out!

    1Reply
  • Gary Carver
    Realtor · Detroit, MI · Member since 2018 · 387 posts · 129 votes
    6y

    @Jeff Marzo.   You have made a smart decision to invest here. There are many opportunities. Good luck

    2Reply
  • Quentin Mitchell
    Investor · Chicago, IL · Member since 2016 · 197 posts · 105 votes
    6y

    I Think Detroit has an incredible opportunity as long as you get with the right people and invest in the right blocks you will see returns. The cash flow in Detroit is nothing less than amazing and there are some areas where the appreciation can be immediately ridiculous. Good luck with everything.

    1Reply
  • Jeff Marzo
    OP
    Developer · Detroit, MI · Member since 2013 · 86 posts · 23 votes
    6y

    @Mark Doty I agree Definitely. I'm looking it currently as a "what do I want, and what am I willing to do for it, such as sacrificing weather temporarily." I know that Michigan isn't my final destination, however it is a place for me to invest sufficient time to build a portfolio of assets.

    It's true I could possibly BRRRR in Detroit from San Diego, however I feel we can progress alot quicker and with less chances of getting screwed over with me being out there. The good news is I have family out there who have used the BRRRR method multiple times, which I'm hoping makes the process a bit easier with their experience and knowledge when it comes to comping, knowing the areas, and finding reliable and trustworthy contractors.

    0Reply
  • Jeff Marzo
    OP
    Developer · Detroit, MI · Member since 2013 · 86 posts · 23 votes
    6y

    @Lyndsey Sass thank you so much for the feedback.

    I haven't done a winter there yet, but I have done a winter in Great Lakes from December - February before. It was FIERCE! Super cold, I know. All good though. After all, it's not my final destination. Ya know?

    Yeah, it turns out I've been networking around the area with other investors in the area, which means they will know I'm not from the area. Moving forward, I guess it'll be on a need to know basis or when asked, but I won't openly volunteer that info. Is that right?

    I figure, regardless if someone is new to the area or new to investing, there will be someone trying to take advantage. I'm relying on my family ties to the area with their experience with REI, my lessons learned from previous RE deals and other businesses ventured, and of course streets smarts from life experiences with people.

    Always open to the next challenge though!

    0Reply
  • Jeff Marzo
    OP
    Developer · Detroit, MI · Member since 2013 · 86 posts · 23 votes
    6y

    @Gary Carver thank you, sir. I'll shoot you a call Thursday if that works for you.

    0Reply
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