Is it worth investing in rental priorities in Buffalo/detroit

[Vignesh Veeran]

Hi, I'm looking to invest in Buffalo/Detroit. Can we find cash flow properties and how's the appreciation and vacancy around it. 

[Travis Biziorek]

Hey Vignesh—welcome to the forums!

I can’t speak to Buffalo, but I’ve been investing in Detroit for several years and currently own a 12-property portfolio there. I also help out-of-state investors buy and operate rental properties in the city, so I can definitely give you a sense of the landscape.

Detroit is absolutely a cash flow market, and you can still find great returns—especially if you're using a strategy like BRRRR. That said, I'd also push back a bit on the idea that it's only a cash flow play. I saw Chris' reply above and he's right that if you look at appreciation from 2000–2020, it's not impressive. But you really have to understand what Detroit went through during that time—bankruptcy, population decline, zero lending post-recession—and how much has changed.

If you zoom in on the last 10 years, the appreciation has been phenomenal, especially in neighborhoods that have benefited from public/private investment (Strategic Neighborhood Fund, new streetscape projects, Ford’s Michigan Central, etc.). The trajectory is still unfolding, and I think there’s plenty of room to run if you buy in the right pockets.

That said, Detroit isn’t without its challenges. Vacancy, property management, theft, permitting delays—they’re all real factors here. It’s not a market for everyone, but if you’re willing to put in the work (or work with someone who’s local and knows the city well), the returns can be very compelling.

Let me know if you want more details on cash flow numbers, areas to focus on, or the types of deals I’m doing right now.