All Forum Posts by: Travis Biziorek

 Yes, please keep me in mind if you can take them all :-)

Thanks, Scott.

 Scott, is this something you're looking at purchasing or are you representing the seller? If the latter, shoot me a note.

 Makes perfect sense to me, Marisa unless builders are getting increasingly pulled to the suburbs and build prices are rising simply to entice them to Detroit proper (not sure that's necessarily a bad thing though either).

Curious where you're getting this data. I'd love to keep an eye on this metric.

 I see a lot of sellers using the "turn key" term in listings, but like Richard said it's not the same. Turn key providers are generally rehabbing houses and selling afterward. Turn key in Detroit tends to mean there's a tenant in place and the house doesn't need much work.

Great points, Brian. My family relocated to metro Detroit almost two years ago. The change in even that short time frame has been amazing to watch. But there's still a long way to go and it's easy to make mistakes. After a ton of research, walking neighborhoods, etc. we're putting out offers and have our first accepted on the west side. 

I can't imagine trying to invest in Detroit from out of state. I've learned so much going to meetups, talking to folks on-the-ground, and learning the market. I'm sure some more experienced folks could and do do it, but for a newer investor I can see how it'd be very easy to get burned.

 All I meant is that the investor community is tightly knit because it's not mainstream or "cool" to invest in Detroit yet. Those that are focusing their efforts on Detroit proper (not the suburbs) are hard to find. 

I was at the MREI meetup in Troy last week and met one person that's focused on Detroit. But you'd be surprised at how many people, even locally, will try to steer you away from the city. I'll also be going to the Detroit Renegades meetup next month. I'd suggest getting out to meetups and finding like-minded folks.

We put offers on three different properties last week, all in Detroit, and had one that was accepted. 

I've been digging into the Detroit market for a couple months now after slowly researching the last 12-18 months (my family relocated here almost two years ago).

My take is the market hasn't stabilized to the point where you're seeing turnkey providers pop up, not on the scale you see them for cities like Nashville, Atlanta, etc. 

My opinion on this is you simply don't see the investment demand for these companies to crop up yet. Most folks are still deathly afraid of Detroit. So while there's a fair amount of money coming into the city, much of it is corporate, large scale development which requires time to take root. 

There's no doubt folks who are investing in SFH's, etc. but it's just nothing close to mainstream which is when you'd start seeing turnkey providers. I do know some people who do a fair number of flips and will sell some of them, but it's still a tightly knit group that's difficult to break into from out of state, especially if you're new to real estate in general.

Can we make this thread for “Negative reactions by BP members when you tell them you’re investing in Detroit”?

😭

@Vinh Huynh

This won’t get you to cash flow break even, but what about management costs?

I have a friend who owns a home in SoCal that he literally just breaks even on. He lays 7% for property management. 10% in expensive markets seems absurd to me. So if you’re paying that much, see if you can shop it around or negotiate with your current manager.

@Ben Gabin, you mentioned your contract is up in June. Be careful and check the rules. If you are no longer employeed with the employer you're at when you take the loan you'll need to repay it in full immediately.