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 ?

[Michael Smythe]

@Francys Ramirez Detroit is a VERY popular market for OOS investors.

Will you be looking to buy/sell for yourself or other investors?

[Francys Ramirez]

I am looking to begin working with investors and eventually start my won portfolio! 

[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.

[Michael Smythe]

@Francys Ramirez recommend you complete your BP Profile and add as much to it as you can.

What you've got, doesn't really tell a story.

Familiarize yourself with the BP Calculators.
- Know a real estate team that uses them to sell a ton of rentals!

How well do you know NOI, ROI, CoC, etc?

[Francys Ramirez]

Wow Travis, this was very helpful and appreciate the insight of what is to come! 

[Bobby Noubiap]

Hello everyone, I am also interested in the Detroit market suburb area with zip codes such as 48221 to buy and hold rental property digging for cash flow and appreciation. It will be my first rental in Michigan. Thanks @Travis Biziorek for your input. I am at the phase now where I need help/coaching analyzing deals to ensure the numbers make sense with decent ROI, CoCROI. I will connect with some experts on BP...

[Kevin Hintz]

Here's the thing about analyzing deals, it can be a real learning curve. Those numbers you mentioned (ROI, CoCROI) are important, but they're just part of the puzzle. Factor in vacancy rates, property management costs, potential repairs, and even things like lawn care. It all adds up.

Good luck with your first rental property in Michigan! Detroit's a dynamic market, so do your research and don't be afraid to ask questions.

[Bobby Noubiap]

@Kevin Hintz thank you! I am targeting the following areas (suburbs/downtown): 1: Phoenix, AZ 2. Columbus, OH 3. Myrtle Beach, SC and my last 4. Detroit, MI. The goal is all time positive cash flow, decent appreciation as LTR to buy and hold. It will be my 3rd property but 1st rental rodeo. I am reading my 1st book on rental property investing and networking for investor, realtor and property manager. I am happy to have found the BP. The vision is becoming a reality but I am still at the planning phase and analyzing deals to ensure the numbers added up after all expenses is my culprit right now...

[Michael Smythe]

@Bobby Noubiap if you invest in the City of Detroit, you must understand which of the 185 Neighborhoods are Class A, B, C & D.

Otherwise, you may get scammed into buying a Class D property thinking it's Class A, B or C.

We've got that data if you're interested.

[Bobby Noubiap]

Thank you @Michael Smythe 

Detroit, MI is my last option but within my radar due to my low budget. I definitely want to be in a B or C neighborhood area since I have a low budget and capital but don't want the headache of bad neighborhood unsolvable problem, bad tenant to potentially deal with eviction and late rent. How do I get the data?

[Michael Smythe]

@Bobby Noubiap PM us please so we can discuss privately:)