All Forum Posts by: Hayley Beckman

In our experience, Remote Investing requires finding a PMC that takes the time to understand an owner's expectations and discusses if & how they can be met.

A common problem is a percentage of Remote Investors expecting their PMC to be a personal assistant. That only works with smaller, desperate PMCs. While they may answer their cell phone at all times of the day, most owners soon find out that the manager is spread too thin and constantly over-promises and under-delivers.

At the other end of the spectrum there are owners who are too hadns off, leaving their PMC to try to figure out how much they can do without owner approval. Often, a major or emergency repair is needed and the owner doesn't respond to fund the repair. Even if the owner responds, it's often all negative as they somehow expect their property to never need repairs.

There has to be a good balance of communication & expectations for the relationship to work.

Excellent points Drew. My typical threshold I set with our Property Managers is $500. Anything less than $500 the PM has autonomy to send out a technician or make repairs and send me the invoice later. Anything more than $500 requires prior consent by me before taking place.

1 Vote

Long distance real estate investing opens up a world of possibilities by allowing investors to tap into markets far beyond their local reach. While living in high cost cities has its own advantages, one of the disadvantages is the high investment cost it takes to enter into real estate investing. With advancements in technology and communication, managing properties remotely has never been easier! Investors can now leverage online platforms for property tours, market analysis, and property management, enabling them to overcome geographical barriers and diversify their portfolios.

One of the key benefits of long distance investing is the ability to access markets with higher potential returns (particularly in the Midwest). Typically speaking, individuals living on either the West Coast or East Coast experience significantly higher home values which makes investing in rental real estate properties more difficult. The cost to value and cash on cash (COC) returns can often be 200-300% higher in the Midwest when compared to your local real estate markets. Investors can strategically target these areas to secure properties at lower prices, benefiting from economic growth and development trends.

Living in a very expensive real estate market (like my Seattle area), long distance real estate investing provides a dynamic path for building a robust and diversified portfolio that I didn’t think was available. The digital age has allowed me to explore new markets, manage properties from afar, and capitalize on undervalued opportunities in the Midwest that might have otherwise been overlooked. For those willing to embrace a broader horizon, long distance investing not only enhances potential returns but also builds a resilient investment strategy with significantly lower cost to entry for real estate investing.

I’d love to hear your thoughts: would you consider long distance real estate investing to seek out greater rates of return and a lower investment cost?

5 Votes

Quote from @Michael K Gallagher:

@Hayley Beckman Thanks for sharing! are you an investor in the detroit market?

While I've never invested personally in Detroit, my usual word of caution to investors in these "lower cost" markets is that while cashflow is great on a % basis, make sure to look at the actual quantity of cashflow. Many of these homes in the midwest can be old, and have deferred maintenance and the management of these assets (ie. handling Detroit winters) is often where the deal is made or missed. If a $200 a month cashflow is 20% return then that's still only $2,400 a year and that can get eaten up by capex and other issues pretty quick. I don't mean to suggest $200 a month in cashflow is a bad return its actually amazing, but the expectations should be clear and understood in my experience.

However, to your point the underlying fundamentals of the market clearly are worthy of investigation.

Agreed totally. A lot of the issues brought up can be mitigated and decreased with great property management in place. Are you invested in the Columbus, OH area at all?

1 Vote

Detroit, Michigan

Quote from @Travis Biziorek:

Detroit has a lot going for it—affordable prices, strong rent-to-price ratios, and an appreciation story that’s still unfolding. But the reality? It’s not for everyone.

I built a 12-door portfolio in Detroit, generating $16,000/month in gross rents, and I’ve seen the good, the bad, and the ugly. Most people will sell you on the upside—cheap properties, high cash flow, and a growing city—but they conveniently skip over the challenges.

Tenant risk is real. Late rents, evictions, and turnovers happen more frequently than in higher-end markets. If you’re not prepared for that, Detroit (and similar markets) might not be a fit.

Older housing stock means more maintenance. Many homes are pushing 100 years old. Plumbing issues, sewer line replacements, and unexpected rehab surprises are part of the game.

Break-ins and theft happen. Vacant properties are targets. If you leave a house unsecured, there’s a chance you’ll lose a furnace or water heater. It’s preventable with proper precautions, but still something to factor in.

Appraisal risk is a wildcard. If you're doing BRRRR, know that bad appraisals can and do happen in Detroit. If you don't have a backup plan, you're in for a rough time.

I don’t say any of this to scare people off—I’ve navigated all these challenges and built a great portfolio. But I do want people to go in with eyes wide open. The folks who struggle in Detroit are the ones who expect smooth sailing.

Happy to share more if anyone’s considering the market. Detroit can be a fantastic place to invest if you’re prepared for the realities that come with it.

I couldn't agree more with what you just said. We have 4 doors in Detroit at the moment and the weather, tenants, theft, etc. is a reality. You have to have the stomach to weather the ups and downs for sure.

But appreciation in Detroit has been next to none over the last several years, and with entry level prices being under 100k it presents a real opportunity for investors!

0 Votes

Detroit, Michigan

Quote from @Ty Coutts:

Hi Hayley

Detroit’s resurgence offers a unique opportunity for real estate investors, with affordable property prices and strong potential for appreciation. Growing demand for rentals in neighborhoods like Midtown and Corktown provides consistent cash flow, and government incentives such as Opportunity Zones further enhance the investment climate.

To add my perspective, it's important to conduct thorough market research and assess trends carefully. Consider exploring financing options like FHA loans and refinancing as the city grows. Properties in high-demand zones may also lead to better financing terms, and staying aligned with Detroit's infrastructure improvements can help ensure your investment's long-term success.

If you need any help on the financing to any of your future projects, feel free to DM me!

Yes, the city of Detroit has committed over $300 million to infrastructure and downtown renovations over the next several years, meaning long term appreciation gains should increase for the foreseeable future.........

0 Votes

Detroit, Michigan

Quote from @Drew Sygit:

How high can housing prices in the City of Detroit go?

In case you missed it, Detroit' Mayor Duggan announced that the value of houses in the city increased 23% in 2024.

In the last 7 years, Detroit housing is up over 300%!

That's an average of 17% annually over that time.

The City of Detroit has not only outperformed every city in the Metro Detroit area, its outperformed every city in the USA from 2014-2024:

Let that sink in for a minute ... you'll probably need more time than that to process this!

Not only did Detroit beat every city in other popular Midwest states like Indiana, Missouri, Ohio, Wisconsin, etc...

Detroit beat every city in the super popular states of Arizona, California, Florida, and Texas - Detroit beat them ALL!

Now let's be real, yes housing values are up overall in the city, but they do vary by Neighborhood. So, it's still NOT a good idea to try to invest by zip codes - which are too big in our opinion/experience. Please stop asking us for "the best" zip codes to invest in.

Detroit has around 183 Residential Neighborhoods - wouldn't it be nice if "some proprety mangagement company" Classified them all as A, B, C, or D on an interactive map that real estate investors could use to make better decisions?

Absolutely!! With Detroit experiencing 20% appreciation in home values for both 2023 and 2024 I will continue to invest in Mo Town for quite some time

0 Votes

Detroit, Michigan

Quote from @Nick Rutkowski:

@Hayley Beckman thanks for your perspective. A few others have me mentioned other rust belt cities reviving because of cheaper housing prices, rising rents, and new business moving in. I see it in Upstate NY - Buffalo, Rochester, and Syracuse.

I totally agree that although real estate prices have skyrocketed along both the East and West Coast, there are still VERY lucrative real estate markets to invest in!

0 Votes

Detroit, Michigan

Detroit, Michigan, is experiencing a resurgence, making it an increasingly attractive destination for real estate investors. With its rich history and revitalizing economy, the city offers unique opportunities for long-term growth. The cost of real estate in Detroit remains significantly lower than many major cities in the U.S., allowing investors to purchase properties at a fraction of the cost compared to cities like New York, Los Angeles, or Chicago. This affordability gives investors the chance to acquire valuable assets while taking advantage of the potential for appreciation as Detroit continues its revitalization.

Another benefit of investing in Detroit real estate is the city's growing rental market. As more people flock to the city due to job opportunities, educational institutions, and an expanding arts and culture scene, the demand for rental properties has risen. Investors can benefit from steady rental income, especially in high-demand areas like Midtown, Corktown, and downtown Detroit. The city’s diverse workforce, combined with new developments and infrastructure projects, ensures that there is a consistent pool of renters, which can result in reliable cash flow for property owners.

Finally, the Detroit real estate market is supported by numerous incentives for investors. Michigan offers tax credits and breaks for development projects, especially in designated areas like Opportunity Zones. Additionally, the city is actively encouraging redevelopment and attracting businesses back to the area. As a result, investors can often tap into government resources that help offset some of the risks of real estate ventures. With ongoing improvements to public services, transportation, and commercial developments, Detroit is positioning itself as a thriving urban hub—making it a prime location for real estate investment!

3 Votes

Detroit, Michigan