All Forum Posts by: Travis Biziorek

Leo, good to see you here brother!

I know you've been doing well in Toledo and you've been potentially eyeing Detroit as well.

Absolutely love your story and enthusiasm, and I know you've got a lot of knowledge and inspiration you can share with investors that are just getting started.

Hey Juan Carlos,

If you're looking for cash flow in the Great Lakes region, I'd recommend considering Detroit. I've been investing there since 2019, and I do it from California.

Detroit is one of the few markets where you can still find great price-to-rent ratios, with properties often well below your $150k budget. There are neighborhoods with strong rental demand, and the city's seeing a lot of revitalization, with the population starting to grow again. This combination helps with both rental demand and potential appreciation.

It’s a market where you can still find a good mix of cash flow and appreciation without overwhelming competition. Small multi-families or single-family homes would make a solid first investment, and cash flow can be quite strong given the rent-to-price ratios.

Happy to share more insight if you’re interested!

Hey Kris,

I totally get where you're coming from—I live in California, and it's a similar story here. Finding good deals is nearly impossible with the prices, tenant laws, and taxes working against us.

Since you're considering the Midwest, I'd definitely suggest keeping Detroit on your radar. I've been investing there since 2019, and there's a lot going for it. Property prices are still very affordable, which makes it great for BRRRR or buy-and-hold strategies. The rent-to-price ratios here make cash flow realistic, and there's a lot of revitalization happening that adds appreciation potential.

Detroit’s population is officially growing again, and there’s strong rental demand, especially in neighborhoods seeing more development. It’s been a good blend of cash flow and appreciation for me, and it might be worth checking out as part of your trip to the Midwest.

If you want to chat more about Detroit, feel free to reach out. I’m happy to share more insight to help you get a sense of the market.

Hope this helps!

Hey Ximei,

I totally understand wanting to maximize the impact of your initial investment, and if you're open to taking on a bit more complexity, the BRRRR route can be a game changer. Here's why it might be the right fit for you:

1. Accelerating Your Growth: BRRRR is all about using your capital efficiently to keep growing. If your goal is to scale faster and get to the point where your real estate cash flow allows you to spend more time with your kids, BRRRR can help you snowball your investments instead of parking all your cash into one deal.
2. Building Equity: With BRRRR, you get the chance to build significant equity upfront by adding value through renovation. If done well, it means you can refinance and use that capital for your next investment—helping you move more quickly towards your goal of creating enough cash flow to change your work/life balance.
3. Market Opportunity: Given the current market in some areas, you can still find deals that make sense for BRRRR, though they do take some effort to locate and execute. The key here is finding the right market and building a strong team—especially for things like contractors. It will take extra work at first, but the payoff can be well worth it if you're up for the challenge.

I won't sugarcoat it—BRRRR isn't easy, especially when you're juggling everything else in life. It can be stressful without contractor connections, but the potential returns and ability to quickly grow a portfolio can make it worthwhile. If you can establish a solid network (even virtually at first), and maybe leverage your savings to buy a property with rehab in mind, the reward could be the path you're looking for to make those five-year goals a reality.

Of course, the risks are there, but if you're comfortable and see the upside, it could be worth leaning into.

If you need more insight into BRRRR execution or anything specific about market selection and building a remote team, feel free to ask.

Hope that helps!

Hey Alyssa,

I’m in a similar situation—I live in California and invest out of state. I've been primarily focused on Detroit since 2019, and it's been quite the ride.

Out-of-state investing has its pros and cons. On the positive side, the price points and rent-to-price ratios in Detroit make it a compelling option compared to California. But I’d say the key to success is building a reliable team on the ground. I was fortunate enough to live in Detroit for several years, so I was able to establish a network before moving back to California. Managing properties remotely is definitely possible, but it’s a lot smoother when you have good contacts for maintenance, property management, and leasing.

Another challenge I've faced is that Detroit is very block-by-block—you have to really understand the neighborhoods. A good team can make or break your ability to navigate that effectively.

If you’re considering out-of-state investing, I'd be happy to share some resources on getting started and making it work for your goals.

Hope that helps!

Hey Priyanka,

The best strategy I've found is to identify listings that are of interest to you, look at the listing agent, and then contact them directly. Even if you’re not necessarily looking to buy that specific house, the listing agent is often a good person to talk to since they’re already working with the type of properties you're interested in.

One thing to understand about the Detroit market is that, given the low price points of many properties, agents often don’t make very much on these transactions. That means it can be challenging to find someone who is super motivated and professional, especially if they're not seeing larger commissions from these deals. It’s just a reality of the market there, so setting your expectations accordingly can save you some frustration.

Hope that helps!

Hey Jeffrey,

Welcome to the community, and great to hear you’re looking into Section 8. I've been navigating the Section 8 space for a while, and I'd be happy to share some insights from my experience.

**Getting Started**: The most important thing is to understand how Section 8 works in your market. The rules and payment standards vary significantly from one area to another, so familiarizing yourself with the local housing authority's procedures is key. Connecting with them directly will help you get a better sense of voucher amounts, inspection standards, and timelines.

**Selecting Properties**: When choosing a property for Section 8, focus on neighborhoods with strong rental demand. You’ll want to invest in areas that have tenant interest but also aren't on the extreme end of neighborhood quality—this means avoiding the very toughest spots, where turnover can be high and managing tenants can be difficult. I’ve found that C to B-class neighborhoods tend to perform best for Section 8 rentals. They're affordable enough to allow good cash flow, while also attracting decent tenant quality.

**Navigating Inspections**: Section 8 inspections are stricter than typical tenant move-in inspections, and that can be a hurdle. Small details like a handrail on stairs or window locks can cause your unit to fail an inspection, delaying the start of rent payments. The best thing you can do is familiarize yourself with Housing Quality Standards (HQS) and ensure your property meets them before your initial inspection.

**Tenant Screening**: The Section 8 program will cover a tenant's rent, but that doesn’t mean you should skip tenant screening. Even with guaranteed rent, it's important to thoroughly vet applicants. Section 8 tenants can be fantastic renters if screened properly. Look at their rental history, the conditions of their previous residence, and ensure they have a good track record with past landlords. Don’t just focus on the voucher—focus on the person behind it.

**Cash Flow & Reliability**: The cash flow can be great, especially since the rent is typically above the average for the area, and it’s guaranteed by the government. But keep in mind that there might be some delays in getting payments started, particularly in the first month or two as inspections are completed and paperwork is processed. Once it’s set up, though, payments tend to come like clockwork, which is one of the biggest perks.

That said, it's important to remember that rent isn’t necessarily guaranteed forever like a lot of folks assume. Voucher amounts are reassessed annually, and they can change on a dime depending on the tenant's situation. I've had instances where a voucher went to literally zero, and the tenant was no longer on the program. It’s always best to keep this in mind and not rely entirely on the expectation of stable payments.

**Mixed Feelings**: I do have mixed feelings about the program overall. While it does offer stability in rental income, there can also be frustrations, especially around dealing with inspections and bureaucracy. It’s worth considering the trade-offs between the stability of income and the increased oversight and hoops you'll have to jump through.

**Maintenance**: Be prepared for a bit more wear and tear compared to market-rate rentals. This isn't always the case, but in general, I've found Section 8 homes tend to require more frequent minor repairs. It helps to build a good network of reliable contractors, especially if you’re investing out of state.

Section 8 has been a part of my strategy, and while it’s not all rainbows, it’s been a solid way to build consistent cash flow. Feel free to ask any more specific questions you have—there’s definitely a learning curve, but it can be a great tool in the right market and for the right property.

Hope this helps, and welcome again!

Hey Anne,

Honestly, it really depends on the specific meetup. When I was living in the Detroit Metro, I went to several meetups. Some of them were genuinely about making connections, sharing knowledge, and just getting to know other investors in the area. But, there were definitely others that felt like a sales pitch from the moment I walked in.

The best way to figure out which ones work for you is to give a few different ones a try. You can usually tell pretty quickly if the meetup is legit networking or if it's just a funnel for a sales pitch. Once I found the right group, it became an invaluable resource for learning, sharing experiences, and growing my network.

It might take a bit of trial and error, but if you find one that clicks, it can be really worth it!

Good luck out there!

Hey Tucker,

I actually self-manage my 12-door portfolio in Detroit, all while being based in California. That said, I lived in Detroit from 2017-2022, which means I was able to build an on-the-ground network before moving away. Without that existing network, I’d find out-of-state management much more challenging, and I generally wouldn’t advise OOS management for new investors who don’t have reliable local contacts.

Currently, I’m in the process of transitioning my properties to a local property manager. It’s not because self-management hasn't worked, but rather because I’m looking to free up my time to scale my portfolio further and focus on some other time-intensive projects.

If you’re managing from a distance, the key is building a local network you trust—contractors, handymen, leasing agents. It makes all the difference. And, if you’re not in a place to build that network yourself, working with a good property manager is probably the way to go.

Hope that helps!

Hey Clint,

If I were starting from scratch today, I'd seriously consider Detroit. I've been investing there since 2019, and I continue to see a lot of strong reasons why it's a compelling market:

• Revitalization & Growth: Detroit has been experiencing significant revitalization over the past few years. The city’s investment in infrastructure, new businesses opening up, and revitalization projects have made a real difference in neighborhood quality and overall economic activity.
• Population Growth: After decades of decline, Detroit's population is finally growing again. This is huge because more people moving in means increased demand for housing, which is great for rental properties.
• Low Entry Price Points: The barrier to entry is still quite low compared to other cities, meaning you can get in with a lower capital investment and still have the potential for solid cash flow. You can find properties under $100k that cash flow well, which allows for lower initial risk compared to higher-priced markets.
• Strong Rental Demand: There’s a solid demand for rental units, particularly in certain neighborhoods. The mix of affordability for tenants and upward trends in neighborhood development has kept the rental demand strong, which is key when looking at any rental market.
• Appreciation Potential: While cash flow is a key consideration, many parts of Detroit are seeing appreciation as revitalization continues. Neighborhoods like Morningside, East English Village, and Bagley are great examples of areas where properties have appreciated, and there are still a lot of up-and-coming pockets where there’s growth potential.

Detroit isn't perfect, of course, and it has its challenges, but I've found it to be a great market to build a rental portfolio that balances cash flow with appreciation. The city’s growth trajectory and the amount of investment being poured in have made me optimistic about the long-term outlook.

Hope that helps give you some insight, and feel free to reach out if you'd like some specific resources.