All Forum Posts by: Kristi K.

Quote from @Travis Biziorek:

Hey Richard, I'm doing a lot of them in Detroit still (and I live in California).

Detroit still has cash flow, although it is getting increasingly difficult to find. The best way to find deals is to add value via a BRRRR type strategy. This is what I help out of state investors do with my team on the ground in Detroit.

We're generally seeing SFH's in the $80k-$90k range all in and duplexes in the $110k-$130k range. Then we're seeing appraisals from $100k - $120k on SFH's and $150k+ on duplexes.

I literally had a client email me yesterday. His duplex appraisal came in at $206k and he was in for $160k total. Not bad!

In terms of net cash flow, you'll see anywhere from $100 - $200 per door. And it can definitely go lower if you have a high equity deal (e.g. that duplex I just mentioned). 

I'm in the camp where I'd rather get as much of my capital back as possible and operate closer to break even.

It should be noted that net cash flow includes all expenses... that means a line item for capex/repairs/vacancy as well (lots of folks don't do this in their numbers).

Finally, I can talk for hours about Detroit. The city is crushing it and going through a major revitalization. I personally own 12-doors there and I'm under contract for another duplex currently.

I've been buying there since 2019 and I have some decent equity in my properties. I'm starting to do cash out refi's on them to buy more.

Happy to talk any time or share a bunch of resources about the market there.

If I had a nickel for every out of state investor who came to the Detroit market to attempt to do a BRRRR or got into bed with folks claiming it’s a viable way to succeed in the Detroit rental market if they hired them to help in a direct or non-direct manner and fell on there face I could build another couple dozen rental properties on top of the couple dozen we build in Detroit every year. It’s one thing to come do it yourself and stay in the city to oversee the construction/rebuild of your rehab it’s a whole other trying to oversee from OOS or OOC full time or part time for that matter. Or even worse paying someone else who resides Out of State to oversee your rehab lol. Our clients appreciate that we lower they’re risk on investment drastically because we are in fact the company that built they’re property, and we’re the one’s that are familiar with it, we’re the actual boots on the ground team and we’re the actual in-house management team. Finding contractors in Detroit that aren’t going to take advantage of you and your investment and sink your BRRRR or eat up most of your profits and put you under water is extremely challenging as well. Just another big reason our clients are thankful for our large number of our trusted skilled workers and tradesman that have been with us for years. Again, I HIGHLY recommend when doing the BRRR Strategy in Detroit or anywhere else for that matter to make certain that you reside nearby your rehab or at the least In-State and not accross the country. Happy to chat anytime or share more thoughts on the market.

OOS = Out Of State

OOC = Out Of Country

The BRRRR strategy or method is a real estate investment method that involves buying, fixing up, renting out, and refinancing properties to build a portfolio and generate passive income. BRRRR stands for "Buy, Rehab, Rent, Refinance,

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