All Forum Posts by: Travis Biziorek

Hey Rachel,

I can see the appeal of leveraging a HELOC to fund your investment strategy, but I'd caution against the approach you're describing.

I used my HELOC to help fund my Detroit portfolio and have written extensively about my experiences with it. The key, though, is you need to be doing value-add projects (think BRRRR). You have to be creating immediate equity in your properties through rehab so you can force the appreciation needed to refinance at a reasonable rate after your rehab is complete.

What you're describing—using a HELOC to purchase properties, hoping the value increases, and then refinancing—is a bit risky. Without forcing equity through a value-add process, you're just hoping for appreciation, and there's no guarantee that's going to happen in a market like the one you're targeting. Plus, once you leverage that HELOC to the hilt and start pulling out more cash, you could find yourself stuck with higher payments that no longer match your expected cash flow.

In my experience, it's critical to have a clear exit strategy. When I was using my HELOC to fund properties, my goal was to buy undervalued properties, rehab them, and then refinance with a solid plan to pay off that HELOC with the equity I had forced into the property. It worked for me because I had a strategy to deleverage once I was done.

Again, what you're proposing doesn't have a clear plan for how you'll pay off the debt or if the properties will even appreciate enough to make it worthwhile. I'd be happy to share more about how I used my HELOC to build my portfolio and how you can do the same with a more sustainable approach.

Hey Sushree,

Detroit's a great market for BRRRR, especially with the right team on the ground. I started investing in Detroit while living there and built up a 12-door portfolio in just a couple of years. I now live in California, but I've been able to maintain and grow my portfolio remotely.

There's a lot of potential in Detroit, especially when you're targeting the right areas. The market is still affordable, and properties can generate strong cash flow, especially for value-add BRRRR deals. While it comes with its challenges (e.g., high tenant turnover, occasional rehab headaches), I've seen great returns—both in cash flow and appreciation—by being strategic about property selection and staying on top of the rehab process.

A lot of people will tell you that you can't be successful investing out of state. Most of these people either worked with the wrong people and/or simply gave up when it got tough. 

Feel free to reach out if you want to dive deeper into Detroit or need advice about getting started in the market!

Hey Ivory,

I see your point on wanting to get property management involved, but in my experience, PMs are best suited for managing the property and handling day-to-day tasks like collecting rent and small repairs. When it comes to rehabbing a property, especially if you’re dealing with more than just cosmetic updates (like a full gut, structural work, or anything beyond minor touch-ups), I would actually recommend working with a separate contractor or rehab specialist.

The reason I say this is that most PMs aren’t used to managing the heavy lifting that comes with a true rehab project. They can sometimes struggle with managing contractors and overseeing renovations. I’ve found that it’s better to keep the PM focused on what they’re best at (property management) and then hire a reliable contractor for the actual rehab. It’s also easier to hold the contractor accountable when they’re the only one involved in that part of the process.

If the rehab is more light cosmetic work, something like paint, flooring, etc., then it’s a bit different, and you might find that a PM is able to handle those tasks. But for anything more involved, I’d recommend having a contractor you trust who can handle the bulk of the work.

Hope that helps!

Travis

Why the aversion to margin loans? 

You can borrow at 5.5% from a broker like IBKR (assuming a $300k+ loan). That's a great rate right now and will beat any other options available to most borrowers (e.g. HELOC's, hard money, etc.).

Hey Steven,

I've been investing in Detroit for a 6 years now, and I've built up a 12-door portfolio here using the BRRRR strategy. I largely focus on C/C+ areas so I have a lot of experience in what you're describing.

How you approach it really depends on what you’re looking to achieve and how much work you want to put in. 

If you’re trying to be hands-off, then I’d say the Class B turnkey properties might be your best bet. You’ll likely get more stability, but the cash flow won’t be as strong as Class C or a value-add deal.

That said, I always lean toward value-add deals because that’s how you truly build wealth in real estate. 

That said, the more you dig into a deal and add value, the more hands-on it’s going to get, especially with rehabs. If you don’t mind getting into the weeds a little more and you want to build long-term equity, the Class C with some light value-add is a great route, but just know it comes with more moving parts.

If your goal is to be as hands-off as possible while still maximizing cash flow, then I would lean toward that first option. But if you’re looking to build faster and are ready to be more involved, the value-add route is the way to go.

Happy to share more about my experience if you want to connect.

Hey Kevin,

Detroit is definitely a solid market to explore, especially for BRRRR. It's not without its challenges, but if you have the right strategy and a solid team, it can definitely yield great results. I've been investing in Detroit for several years now, and I've learned a lot along the way—both from the successes and the bumps in the road.

I work with out-of-state investors who want to do BRRRR in Detroit. My team helps with everything from sourcing off-market deals, overseeing rehab projects, and providing property management once everything is ready to go. It's a process that requires a solid plan and execution, but it's absolutely possible to make it work.

Even if Detroit doesn’t end up being the right market for you, I’ve got a lot of resources and insights about out-of-state investing that I’m happy to share. Just reach out, and I’ll be glad to point you in the right direction based on your goals.

Luca, I'd personally avoid refinancing if your rate is lower. The loan amount you're looking for is small and you should be able to get the cash another way.

Do you have a 401k? If so, you may be able to borrow up to $50,000 against it. I've done that in the past and it's a great option. Generally, repayment is monthly over a 5-year period and all interest is paid to your self.

If not, a great option I've also used in the past is LightStream Capital. They're similar to hard money in terms of rates but they offer more flexible payback periods. You can get loan terms up to 5 years. I've done $50,000 loans with them a couple times and the process is super easy, all online, and had the cash in my bank within 2-3 days.

Hope that helps!

Hey Isaiah,

Detroit can definitely be a solid market for investment, but it’s not as simple as just picking a location. The city’s incredibly block-by-block, so some areas will work while others won’t.

The upside in Detroit comes from getting in on the right properties in the right neighborhoods. The trick is finding areas that are transitioning—places where you’re still getting good pricing but with some upside. That’s the sweet spot for building equity quickly while still getting solid cash flow.

That said, Detroit has its challenges. If you can stomach the occasional hurdle, it can pay off. But Detroit isn’t for everyone—it’s a bit of a grind to get things going, especially if you’re managing from out of state.

I’ve been investing in Detroit since 2019, and have built a 12-door portfolio. I’ve got a lot of content that talks about my experience, the ups and downs, and what I’ve learned along the way. If you want to dive deeper into Detroit, feel free to reach out. I’m happy to help!

Hey Chris,

Welcome! I used to live in SF too, but now I’m down on the Central Coast. I actually went up for Bryan Johnson’s first Summit last September. I’m a big fan of longevity space!

As for real estate, I’ve been investing in Detroit for a few years now. It’s definitely a market with its challenges but if it fits your goals, it can be a great place to make things happen. I’ve built a 12-door portfolio there and have extensively documented my journey, including the pros and cons, performance numbers, and lessons learned.

If Detroit sounds like it might be of interest, I’m happy to share some of those resources with you! It’s not a market for everyone, but if it clicks, it can make a lot of sense.

Hey Gp,

We’re still doing some deals in Detroit that hit around the 2% rule, but it’s definitely getting tougher. These deals are generally value-add duplexes where you’re buying cheap off-market properties and doing a significant rehab. Here’s how it typically works:

- Purchase price around $60k

- Rehab cost ~$50k-$60k

- ARV in the $150k+ range

- Rent per unit around $1,000 - $1,100/month (or more if you’re pushing for Section 8)

You used to be able to find these deals with single-family homes about 1-2 years ago, but that ship has largely sailed. Duplexes are where you’re more likely to have a shot at the 2% rule.

If you’re serious about Detroit and want to dive deeper into this, I’d be happy to chat. Just let me know!