What are you seeing in the market?

[Francys Ramirez]

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]

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.