All Forum Posts by: Travis Biziorek

Hey Alex,

This is an insanely loaded question—Detroit is a very block-by-block market, and what cash flows well in one area might be a nightmare just a few blocks over. That said, you have a huge advantage being local. Being able to drive and walk through different neighborhoods is one of the best ways to get a real sense of what areas align with your strategy.

For background, I started investing in Detroit in 2019 while I was living there and built a 12-door portfolio in just over two years. I’ve written a lot about my experience—both the good and the challenges—and I’m happy to share some of that info if you’re interested.

If you want some first-hand insights, feel free to reach out. I’ve published a lot of resources that might help you navigate the market and figure out what makes the most sense for you.

Good luck!

Hey Ryan, I do something like this for one of my Detroit duplexes.

Water is really the only concern here since gas & electric are both sub-metered (almost always) in Detroit. 

For water, landlords are usually paying it because there's just one meter and splitting it is insanely costly for some reason. I had another client look at splitting it and it was going to be thousands of dollars... not worth it.

So what I do on one of mine is I state that tenants will be billed back for 25% of the monthly water bill. I pay 50% as the landlord and the two units equally split the other 50%.

Honestly, it's a bit of a pain to go in and bill the tenants each month. And there have been months where I just forget to do it lol. 

I'll probably stop doing it here at some point as we continue to raise rents over the years. And what I'm doing it pretty rare in Detroit. Most are just paying it themselves.

Hey Kash, that my site you linked to! My calendar says we have a call tomorrow, and I look forward to chatting.

What you're describing is exactly what me and my team help investors do every day. We execute 120+ BRRRR deals in Detroit each year right now, largely with out of state and out of country investors.

I've worked with quite a few people from BiggerPockets and hopefully some will chime in. I like to think I have a pretty strong reputation here.

As others have mentioned, this is a viable strategy, sure. But you also have a lot of cooks in the kitchen.

I work with a lot of investors wanting to get started in the Detroit market, and from time to time I'll be approached by a group like this. It's either extremely tough to get the deal done, or it never happens. This is largely because the group either has a hard time all getting on the same page, or they cannot do so in a timely manner. 

Great deals move quickly, and if there are too many decision makers, it's more likely the deal is gone before they can all make a decision.

I was in a similar position when I started my portfolio. I only had about $50,000 in savings to use. I leveraged my home equity via a HELOC as well as a 401k loan on both my and the wife's 401k's. Finally, I also added a loan via LightStream for another $50k.

It was a lot of debt to be carrying but I was able to service it and, in my opinion, was far better than having a bunch of partners that would have slowed me down.

All that said, if this is your best/only path I'd say to go for it. Just try and keep the number of partners to a minimum.

Hey Jinming, welcome! I’m also in CA and completely understand looking to the Midwest for better cash flow—Bay Area prices make that nearly impossible there.

I built my rental portfolio in Detroit while living there, and now that I’m back in CA, my team helps other investors do the same. Detroit still has some of the best rent-to-price ratios in the country, and if you know where to buy, there are strong path-of-progress areas with appreciation potential too. It’s a market that requires some due diligence, but for cash flow, it’s tough to beat.

If you’re exploring Midwest markets and want to learn more about Detroit, I’ve written a ton about it and am happy to share resources. Feel free to reach out!

Hey Cooper, I know you’re looking at Tuscaloosa, but I’d be remiss if I didn’t plug Detroit given your criteria.

With a $100K-$175K budget and a focus on cash flow, Detroit is one of the few markets where you can still find solid rental properties that cash flow well—especially if you're strategic about neighborhood selection. Rents are strong relative to purchase prices, and if you're considering the BRRRR strategy, there are still opportunities to make it work.

I built a 12-door portfolio in Detroit using BRRRR and have written extensively about the market, including the nuances, challenges, and where I see the best opportunities today. If you want to check out some of my resources, feel free to reach out—I'm happy to share more info!

P.S. I also live in CA but up here on the Central Coast.

You're conflating SEV with taxable value. The two essentially have nothing in common so comparing the percentage increase of the SEV over the previous owner's taxable value makes no sense.

I like the way you did your math to project your future tax liability, and it got you in the ballpark of the true, new SEV. And I can confirm this is basically what we're seeing with many of our clients... the estimated SEV is falling slightly short of the new assessed value. 

It happens, and there's really nothing you can do about it.

I don't know the details of the property, so can't advise whether appealing or not makes sense. I've appealed almost all of my purchases in Detroit and had a ton of success doing it. But I was doing significant rehabs and have a specific strategy for appeals. 

That said, appealing is free if you do it yourself (I always did), so it's a great risk/reward.

When you say, "based on my math"... what was your math based on?

If you weren't pulling the current SEV and using the online property tax estimation calculator then it's just pulling numbers out of thin air. 

Based on the 45% figure it sounds like you were making the common mistake most people make and not doing it that way.

I'm not faulting you, just trying to clear things up for others. Property taxes in Detroit don't just jump 45% out of nowhere. They can move like that when they become uncapped, but it's pretty easy to get within about 5% of what that uncapped value will be before purchasing.

Detroit is definitely worth considering. I built my 12-door portfolio there in just 2.5 years using BRRRR, and while it's not as easy as it was a few years ago, it's still one of the few markets where BRRRR actually works.

A few reasons why Detroit makes sense:

• Affordability – You can still buy solid properties with cash under $100k in the right areas.

• Rent-to-price ratio – Section 8 and market-rate rents can both produce strong cash flow.

• Appreciation story – Detroit is on the upswing, and certain areas are seeing major redevelopment.

• High rental demand – Plenty of renters looking for quality housing, especially near strong C to B-class neighborhoods.

That said, it’s not an easy market. You need the right team, local knowledge, and a game plan—especially if you’re investing out of state. I’ve written a lot about it and openly share my numbers, strategies, and lessons.

If you’re serious about exploring Detroit, feel free to reach out. Happy to share more insights!

Hey Jason,

I own 12 doors in Detroit, and 3 of them are rented to Section 8 tenants, so I’ve had firsthand experience with the program. It can be great, but it’s not for everyone.

Pros:

• Guaranteed rent payments – The biggest perk. When a large portion (or all) of the rent is paid by the government, you eliminate a major risk.

• High demand – There are more tenants looking for Section 8 housing than available properties, which makes filling vacancies easier.

• Longer tenant stays – Section 8 tenants tend to stay put since finding another landlord who accepts vouchers isn’t always easy.

• Potentially higher rents – In some markets, Section 8 can pay above-market rent, though it depends on the local housing authority.

Cons:

• Lower tenant quality (on average) – Not all Section 8 tenants are bad, but they often have lower incomes and credit scores, requiring careful screening.

• More red tape – Initial inspections, annual renewals, and additional paperwork can slow things down.

• Slower leasing process – It typically takes longer to place a Section 8 tenant due to inspections and approval delays.

• Neighborhood impact – Too much Section 8 in one area can hold back neighborhood improvement if landlords don’t properly screen tenants.

Would I recommend it? It depends on your goals and risk tolerance. I personally like having a mix of cash and Section 8 tenants in my portfolio. If you’re careful about tenant selection and understand the trade-offs, it can work really well.

I’ve written a lot more about this—if you want more insights, feel free to reach out and I can point you to the right resources.

Best,

Travis