All Forum Posts by: Travis Biziorek

I've heard a lot of complaints about it this year. For a baseline, I own 12-doors in Detroit but I also have a couple hundred clients I've helped buy rentals there over the last couple years.

Everyone seems to be complaining about higher property taxes. The reality is, you should be pulling the current SEV for any new acquisition and doing your property tax calculations based on that figure before buying. I do this for every single client.

But even that is not bulletproof and I've seen new adjustments going 5-10% higher than that.

You can appeal property tax assessments, and I've done so with a lot of success in the past. But it's best if you have done some significant rehab to the property (at least that's my experience. 

All that said, you shouldn't be seeing anything close to a 2x in expected property taxes unless you completely fumbled the ball on pulling the current SEV before purchase.

A lot of people do their numbers based on what the current owner is paying or what Zillow shows. This is a huge mistake, and it's where most people get into trouble.

This is sounding like a no-brainer to me. I understand you may be nervous but this is a fantastic way to get started, especially with your gf on board.

I own 12-doors in Detroit... 8 SFH's and 2 duplexes. But I currently live in California where we just built an ADU at our primary residence that we'll be operating as a short-term rental.

I didn't get started until 2019 but I WISH I'd gotten started much earlier. I have a high risk tolerance so getting started for me wasn't too difficult/challenging. I just looked at it as "what's the worst that can happen?" and went for it.

Lots to unpack here, but I generally agree with @Nicholas L.

You are not going to get what you desire at this price point. I will say that I help investors do duplexes in Detroit, all-in, sometimes in the $120k range. These are C/C+ areas and, when done, they are worth $160,000+

And that's the catch. These people are buying them cash (usually in the $60,000 range) and dumping another $50,000 - $60,000 into a rehab. 

So, yes, if you're willing to do that you can achieve what you're talking about. 

But trying to find something in the $100k-$120k range that's occupied and needs very little work? It basically doesn't exist outside of a D class area, and you really don't want that.

Cameron, my quick thoughts are this sounds like a good opportunity for you if the location makes sense for you and your lifestyle.

I don't know what you currently pay in rent, but if it's more than $1,000/mo this seems like owning this duplex would be a nice move forward. You'll build equity and you can learn the ropes on how to be a landlord.

Personally, I wouldn't even worry too much about making a profit on this because you could potentially get your living costs reduced dramatically by having the other side of the duplex subsidize whatever you currently pay.

In short, I'd value owning a property, building equity, having exposure to potential appreciation, etc. over making money on this acquisition. You have to consider, the vast majority of people that own a home own it as completely liability without it generating any income. House hacking turns that on its head. I'd go for it!

Hey Mostafa, I agree with Drew.

Worry about the deal and you won't have an issue finding a buyer. For some perspective, I do 100+ deals in Detroit per year right now so feel free to send me what you have when you have it.

That said, the problem with most wholesalers is they don't actually know what a good deal looks like. They are so desperate to just get something under contract that they don't property negotiate and/or they don't actually understand the numbers.

Again, if you take the time to be somewhat educated and actually get strong deals, it won't be an issue finding a buyer.

The biggest challenge for most people is tuning out the noise and not listening to other people. 

Let's be real, it's fine to talk to other people and hear about what they are doing, their opinions, and what's worked for them. But understanding that most of advice is highly biased to that specific person because it worked (or didn't work) for them is key.

Everyone told me not to invest in Detroit in 2019. Even locals. But I saw an opportunity and I went all in. I did a lot of things in the market that were against conventional wisdom at the time. And it's paid off immensely. 

Had I listened to everyone else I'd perhaps done ok, but I wouldn't be anywhere close to where I am now.

Managing rentals from out of state isn’t easy. Some parts you can systematize, but for things like turnovers, repairs, and showings, you need real boots on the ground.

I built a 12-door portfolio in Detroit while living there, then moved back to California and managed them remotely for a while. It worked, but it was a grind. Now, I’m transitioning everything to full property management.

For this to work, you need a solid team—leasing agents, maintenance, and a reliable contractor or handyman. Some investors use leasing agents with a lockbox setup for showings, but you still have to coordinate repairs, inspections, and make sure things actually get done.

I wrote a post on the pros/cons of long-distance self-management. If you want to check it out, shoot me a message and I’ll send it over.

I actually just wrote about this in my newsletter last week!

For my C/C+ class rentals in Detroit, I almost never include appliances. It’s just not expected by the tenant base, and I’ve found that supplying them creates more headaches than benefits.

Here’s why:

• More maintenance & costs – Tenants in lower-income areas tend to be rougher on appliances. If you provide them, you’re on the hook for repairs or replacements.

• Not a rental value booster – Unlike in higher-end rentals, including appliances doesn’t significantly increase rent in C-class areas.

• Tenants often have their own – I’ve had tenants specifically ask me to remove appliances because they already had their own set.

• Longevity argument? Not my style – Some landlords believe requiring tenants to bring appliances keeps them in place longer, but I’m not a fan of that mindset.

Early on, I tried supplying used appliances to strike a balance, but every single one broke within two years. When I did provide them, I ended up switching to new ones, but if I were buying today, I’d skip them altogether.

Hope that helps!

Hey Samantha, Detroit can be an amazing market.

Two things I'd recommend:

1) Google the "Renegade Detroit Investors" and start attending their monthly meeting. It's fantastic and there's a great mix of investors at different stages there.

2) Join the Metro Detroit Real Estate Investors Facebook group. It's extremely valuable but you need to be careful in there... some people can be extremely unforgiving. But you'll learn a lot just lurking for awhile too.

If you want a ton of resources specifically about the Detroit market feel free to shoot me a DM. I'm heavily invested there and have been since 2019. 

Hope that helps!

Christian, BRRRR can absolutely work out of state, but it's not easy—especially if you're dealing with full rehabs. It all comes down to having the right team and knowing your market inside and out.

For context, I built a 12-property portfolio in Detroit that now brings in $16K/month in gross rents. I was on the ground when I did it, but I live in CA now, and my team helps out-of-state investors execute the same strategy. We source off-market deals, manage rehabs, and handle property management so investors don’t have to be local to make it work.

If you're thinking about BRRRR remotely, the key is getting your team dialed in before you buy. A lot of investors think they’ll figure it out as they go, but that’s where they run into problems. If you want to chat more, feel free to DM me. Happy to share insights.