Looking into Detroit but SO scared

Detroit, Michigan
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Looking into Detroit but SO scared

Michael Oliver
New to Real Estate · MI · Member since 2023 · 40 posts · 13 votes

Hello.  I have been lookin into pulling the trigger on deals in Detroit that are already occupied.  Seems like automatic cash flow.  But seems too good to be true.  And super risky.  Anyone in Detroit with any info?

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Travis Biziorek
Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
3y

Hey Michael, looks like you've got a few uninformed responses here so I'll provide you one from someone that actually invests in Detroit.

I live in California now and have 12-doors in Detroit. I'm still actively investing but I help others get started there as well.

The city has been insanely good to me and my family, but yes... you do need to do a lot of due diligence and/or work with someone that REALLY understands the intricacies of the market. Happy to connect and see if I can be helpful.

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  • Dylan ThomasBusiness Member
    Real Estate Agent · AL · Member since 2021 · 90 posts · 44 votes
    3y

    @Kevin Truong

    I can speak to you about Alabama. I messaged you

    [email protected]251-635-2739
    0Reply
  • Rachelle Antoine
    Member since 2022 · 14 posts · 5 votes
    3y
    Quote from @Travis Biziorek:

    Hey Michael, looks like you've got a few uninformed responses here so I'll provide you one from someone that actually invests in Detroit.

    I live in California now and have 12-doors in Detroit. I'm still actively investing but I help others get started there as well.

    The city has been insanely good to me and my family, but yes... you do need to do a lot of due diligence and/or work with someone that REALLY understands the intricacies of the market. Happy to connect and see if I can be helpful.


     agreed! would love to connect bought my first property here in Detroit to house hack very close to downtown/midtown and I love it! Would love to connect on areas you have invested in!

    1Reply
  • Travis Biziorek
    Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
    3y
    Quote from @Rachelle Antoine:
    Quote from @Travis Biziorek:

    Hey Michael, looks like you've got a few uninformed responses here so I'll provide you one from someone that actually invests in Detroit.

    I live in California now and have 12-doors in Detroit. I'm still actively investing but I help others get started there as well.

    The city has been insanely good to me and my family, but yes... you do need to do a lot of due diligence and/or work with someone that REALLY understands the intricacies of the market. Happy to connect and see if I can be helpful.


     agreed! would love to connect bought my first property here in Detroit to house hack very close to downtown/midtown and I love it! Would love to connect on areas you have invested in!


     Sure, shoot me a message any time!

    0Reply
  • Tellis Frank
    Member since 2023 · 1 post · 0 votes
    3y
    Quote from @Travis Biziorek:

    Hey Michael, looks like you've got a few uninformed responses here so I'll provide you one from someone that actually invests in Detroit.

    I live in California now and have 12-doors in Detroit. I'm still actively investing but I help others get started there as well.

    The city has been insanely good to me and my family, but yes... you do need to do a lot of due diligence and/or work with someone that REALLY understands the intricacies of the market. Happy to connect and see if I can be helpful.

    I’m in Detroit can we possibly connect? 
    0Reply
  • Travis Biziorek
    Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
    3y
    Quote from @Tellis Frank:
    Quote from @Travis Biziorek:

    Hey Michael, looks like you've got a few uninformed responses here so I'll provide you one from someone that actually invests in Detroit.

    I live in California now and have 12-doors in Detroit. I'm still actively investing but I help others get started there as well.

    The city has been insanely good to me and my family, but yes... you do need to do a lot of due diligence and/or work with someone that REALLY understands the intricacies of the market. Happy to connect and see if I can be helpful.

    I’m in Detroit can we possibly connect? 

     Sure. Shoot me a message any time.

    0Reply
  • Quincy Browning Morgan
    Member since 2023 · 2 posts · 0 votes
    3y
    Quote from @Joe Hammel:

    @Kass Farran

    Yep I can send it. I’ll send a message


     Can I see it aswell? Thank you

    0Reply
  • Joe HammelBusiness Member
    Real Estate Agent · Metro Detroit, MI · Member since 2018 · 612 posts · 666 votes
    3y

    @Quincy Browning Morgan

    Sure thing, send me a DM

    [email protected]248-422-1685
    FIRE Realty Team - Keller Williams5379 Reviews
    WebsiteView Page
    0Reply
  • Scott Mac
    Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
    3y

    What seems to unique to the area (at least on a large scale) is electrical theft.

    You should also know about "Electrical Theft" in the Big D.

    Renters get electric shut off and pay someone to make an illegal hookup.

    Using fish hooks or other unsafe methods, WXYZ Reports: https://www.youtube.com/watch?v=V-4cSLH1DEA

    Good Luck!

    1Reply
  • Account Closed
    Los Angeles, CA · Member since 2014 · 1 post · 0 votes
    3y
    Quote from @Joe Hammel:

    @Michael Oliver

    Metro Detroit has what nearly every single investor wants.

    Couple hundred bucks a door (after PITI and budget expenses) , double digit ROI, and yes, the prices appreciate and you build equity.

    You just have to know how to recognize it.

    I cash flow $100k a year off 20 doors. Happy to send a screen shot of the break down to anyone who reaches out. It won’t allow me to attach a pic here.

    Hi Joe. 
    I am working with Nick Harris from your team. I am looking forward to my first investment property in Detroit. 
    Rachel
    0Reply
  • Joe HammelBusiness Member
    Real Estate Agent · Metro Detroit, MI · Member since 2018 · 612 posts · 666 votes
    3y
    Quote from @Account Closed:
    Quote from @Joe Hammel:

    @Michael Oliver

    Metro Detroit has what nearly every single investor wants.

    Couple hundred bucks a door (after PITI and budget expenses) , double digit ROI, and yes, the prices appreciate and you build equity.

    You just have to know how to recognize it.

    I cash flow $100k a year off 20 doors. Happy to send a screen shot of the break down to anyone who reaches out. It won’t allow me to attach a pic here.

    Hi Joe. 
    I am working with Nick Harris from your team. I am looking forward to my first investment property in Detroit. 
    Rachel

     That's great! Nick is a great investor/agent.

    [email protected]248-422-1685
    FIRE Realty Team - Keller Williams5379 Reviews
    WebsiteView Page
    0Reply
  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    3y

    @Michael Oliver you may want to read about the Good, Bad & Ugly of Detroit in our "Deep Dive" series we're doing on our BiggerPockets blog about Metro Detroit cities, City of Detroit Neighborhoods and comparing Metro Detroit to other hotspots investors usually consider:

    https://www.biggerpockets.com/member-blogs/3094/99854-deep-dive-into-metro-detroit-cities-ecorse

    Doubt you'll find this much info for any other market in the country. So, why would you invest remotely anywhere else?

    Logical Property Management4.9454 Reviews
    WebsiteView Page
    2Reply
  • Mohamed Elkashlan
    Member since 2023 · 7 posts · 1 vote
    2y
    Quote from @Henry Lazerow:

    I second what Eric says. No one sells an actual performing asset at a real life high cap rate. You get what you pay for. 


     Hi Joe 

    I know its a bit late and I hope youre still around. could you please send me tat breakdown would love to see it. thank you 

    0Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    2y
    Quote from @Michael Oliver:

    Hello.  I have been lookin into pulling the trigger on deals in Detroit that are already occupied.  Seems like automatic cash flow.  But seems too good to be true.  And super risky.  Anyone in Detroit with any info?


     whatever it is but Detroit is suddenly one of the most hunted city by everyone in latest 17 months based on redfin

    0Reply
  • Travis Biziorek
    Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
    2y
    Quote from @Carlos Ptriawan:
    Quote from @Michael Oliver:

    Hello.  I have been lookin into pulling the trigger on deals in Detroit that are already occupied.  Seems like automatic cash flow.  But seems too good to be true.  And super risky.  Anyone in Detroit with any info?


     whatever it is but Detroit is suddenly one of the most hunted city by everyone in latest 17 months based on redfin


     And some folks here have been seeing this coming for the last 5 years :-)

    2Reply
  • Joe HammelBusiness Member
    Real Estate Agent · Metro Detroit, MI · Member since 2018 · 612 posts · 666 votes
    2y
    Quote from @Mohamed Elkashlan:
    Quote from @Henry Lazerow:

    I second what Eric says. No one sells an actual performing asset at a real life high cap rate. You get what you pay for. 


     Hi Joe 

    I know its a bit late and I hope youre still around. could you please send me tat breakdown would love to see it. thank you 


     Sure thing Mohamed, I sent you a PM.

    [email protected]248-422-1685
    FIRE Realty Team - Keller Williams5379 Reviews
    WebsiteView Page
    0Reply
  • Raj Ahluwalia
    Member since 2023 · 1 post · 1 vote
    2y
    Quote from @Joe Hammel:

    @Michael Oliver

    Metro Detroit has what nearly every single investor wants.

    Couple hundred bucks a door (after PITI and budget expenses) , double digit ROI, and yes, the prices appreciate and you build equity.

    You just have to know how to recognize it.

    I cash flow $100k a year off 20 doors. Happy to send a screen shot of the break down to anyone who reaches out. It won’t allow me to attach a pic here.


     Hi Joe, I'd love to see a breakdown. Thank you!

    1Reply
  • Joe HammelBusiness Member
    Real Estate Agent · Metro Detroit, MI · Member since 2018 · 612 posts · 666 votes
    2y
    Quote from @Raj Ahluwalia:
    Quote from @Joe Hammel:

    @Michael Oliver

    Metro Detroit has what nearly every single investor wants.

    Couple hundred bucks a door (after PITI and budget expenses) , double digit ROI, and yes, the prices appreciate and you build equity.

    You just have to know how to recognize it.

    I cash flow $100k a year off 20 doors. Happy to send a screen shot of the break down to anyone who reaches out. It won’t allow me to attach a pic here.


     Hi Joe, I'd love to see a breakdown. Thank you!


     Sure thing Raj, I'll send a PM

    [email protected]248-422-1685
    FIRE Realty Team - Keller Williams5379 Reviews
    WebsiteView Page
    1Reply
  • Account Closed
    Investor · Member since 2021 · 1 post · 0 votes
    2y

    @Joe Hammel I would like to see a breakdown as well if I am not too late to the post!

    0Reply
  • Joe HammelBusiness Member
    Real Estate Agent · Metro Detroit, MI · Member since 2018 · 612 posts · 666 votes
    2y
    [email protected]248-422-1685
    FIRE Realty Team - Keller Williams5379 Reviews
    WebsiteView Page
    0Reply
  • Joe HammelBusiness Member
    Real Estate Agent · Metro Detroit, MI · Member since 2018 · 612 posts · 666 votes
    2y
    Quote from @Account Closed:

    @Joe Hammel I would like to see a breakdown as well if I am not too late to the post!


    Sure I can send you something, Clare. I'll send you a direct message!

    [email protected]248-422-1685
    FIRE Realty Team - Keller Williams5379 Reviews
    WebsiteView Page
    0Reply
  • Chris Morris
    Investor · MI · Member since 2023 · 23 posts · 9 votes
    2y
    Quote from @Joe Hammel:
    Quote from @Account Closed:

    @Joe Hammel I would like to see a breakdown as well if I am not too late to the post!


    Sure I can send you something, Clare. I'll send you a direct message!


    Hey, Joe Mind if I take a look at that breakdown -Thanks
    0Reply
  • Nader Shariff
    Detroit, MI · Member since 2020 · 150 posts · 68 votes
    2y
    Quote from @Michael Oliver:

    Hello.  I have been lookin into pulling the trigger on deals in Detroit that are already occupied.  Seems like automatic cash flow.  But seems too good to be true.  And super risky.  Anyone in Detroit with any info?


     I don't blame you , it is a very complicated marketplace. There are a lot of pros to the marketplace, however there are also risks involved. Things don't always go as planned so plan for the unexpected. Make sure you have a solid team on the ground that aligns with your goals. You will want to ensure the ones you have on the ground are trustworthy and explaining exactly what it is you are about to get into. Overall, speaking from personal experience, Detroit makes for great market to enter, as there are a lot of things going for it at the moment. The key is to be comfortable with issues that may arise and understand that it may happen and that the team you work with reacts quickly to resolving these issues. 

    0Reply
  • Joe HammelBusiness Member
    Real Estate Agent · Metro Detroit, MI · Member since 2018 · 612 posts · 666 votes
    2y
    Quote from @Chris Morris:
    Quote from @Joe Hammel:
    Quote from @Account Closed:

    @Joe Hammel I would like to see a breakdown as well if I am not too late to the post!


    Sure I can send you something, Clare. I'll send you a direct message!


    Hey, Joe Mind if I take a look at that breakdown -Thanks

     Sure Chris, sending you a direct message now.

    [email protected]248-422-1685
    FIRE Realty Team - Keller Williams5379 Reviews
    WebsiteView Page
    0Reply
  • Rich Solano
    Investor · Freehold, NJ · Member since 2017 · 51 posts · 12 votes
    2y
    Quote from @Travis Biziorek:

    Hey Michael, looks like you've got a few uninformed responses here so I'll provide you one from someone that actually invests in Detroit.

    I live in California now and have 12-doors in Detroit. I'm still actively investing but I help others get started there as well.

    The city has been insanely good to me and my family, but yes... you do need to do a lot of due diligence and/or work with someone that REALLY understands the intricacies of the market. Happy to connect and see if I can be helpful.


    How has your CapEx and turnover been in your experience with 12 units?

    0Reply
  • Travis Biziorek
    Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
    2y
    Quote from @Rich Solano:
    Quote from @Travis Biziorek:

    Hey Michael, looks like you've got a few uninformed responses here so I'll provide you one from someone that actually invests in Detroit.

    I live in California now and have 12-doors in Detroit. I'm still actively investing but I help others get started there as well.

    The city has been insanely good to me and my family, but yes... you do need to do a lot of due diligence and/or work with someone that REALLY understands the intricacies of the market. Happy to connect and see if I can be helpful.


    How has your CapEx and turnover been in your experience with 12 units?


     Better than you'd expect. Happy to share some data on it if you want. I'm quite public about performance numbers with my properties there.

    0Reply
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