All Forum Posts by: Travis Biziorek

Hey Ben,

I get where you’re coming from—sometimes those numbers can seem too good to be true, especially when you compare Detroit to other markets. I’ve been investing here since 2019, and while the numbers can look attractive on paper, the key is understanding the nuances of Detroit’s neighborhoods.

There are definitely pockets that can yield the kind of returns you’re looking for, but you’ll want to be strategic about which neighborhoods you’re targeting. The 1% rule is doable, but don’t just go off that—focus on areas with strong rental demand and where tenant quality is solid. Neighborhoods like Bagley, Morningside, or parts of East English Village can be good spots to start researching. They have a mix of solid rental demand and still offer relatively affordable entry points.

FWIW, those aren't areas I specifically invest in today but they will give you some anchors and are examples of strong neighborhoods.

As for schools, it’s true they can be a challenge in a lot of Detroit. It’s important to weigh how much that impacts your tenant base, especially if you’re planning to rent to families. I’d also advise being cautious with turnkey listings that look overly perfect—they often come with a higher price tag and might not deliver the promised returns.

Also, I’d encourage you to really assess property management options. A good PM in Detroit can make or break your investment here, especially if you’re not local.

If you're looking for some more in-depth resources about the market shoot me a note. Happy to send you some stuff.

Hope that helps!

Hey Glenn,

Detroit might be worth a look if you’re exploring new Section 8 markets. I’ve been investing there since 2019, and there’s a lot going for it—especially in terms of affordable properties and a strong rental demand.

You can still find single-family homes under $100k that cash flow well. Plus, Detroit’s Section 8 program has been really solid from my experience, with a stable tenant base and reliable payment structure.

Another thing to consider is the city’s growth trajectory. Detroit’s population is officially on the rise again, and there’s significant revitalization happening in many neighborhoods. Morningside, East English Village, and the Bagley area, for instance, have all seen positive trends, both in terms of appreciation and rental demand. While these aren't areas I'd be investing in today, there are plenty of up-and-coming pockets in Detroit.

It’s also not a market that’s overly saturated yet—you can find opportunities where you can scale by picking up multiple units in similar areas without running into huge competition.

If you’re looking for somewhere with potential to expand into a few neighborhoods without the “three homes and done” situation, Detroit could be a solid choice. Shoot me a message if you want me to share some resources about the market there.

Hope that helps!

Hey Wei,

If you can house hack, absolutely do it! Not everyone has that flexibility in life, so if you have the opportunity, grab it! I’ve never met anyone who regretted house hacking—it’s a powerful way to get started.

House hacking can help you get better financing terms, live in and manage your property directly, and start building equity right away. It sets a solid foundation for your real estate journey. Sure, the cash flow might be tight, especially in a high-cost area like Seattle, but you’re building stability and experience, which is invaluable when you’re just starting out.

To be transparent, I invest out-of-state and help others do the same, so I’m incentivized to tell you the opposite. But I genuinely believe that if you’re just getting started, house hacking is the better option. It allows you to build a stable, solid base. Once you’ve got that down and want to keep growing, you can start looking at out-of-state investments if they align with your goals.

Best of luck with whichever direction you decide to take!

—Travis

Hey Minji,

I built my 12-door Detroit portfolio with the BRRRR strategy and it's been huge for me. That's not to say it's easy! I'm currently based in California FWIW.

Detroit has a lot going for it: affordable properties, a solid rent-to-price ratio, and a ton of neighborhoods with strong rental demand. The population is also officially growing again. You can still find properties that are well below what you'd see in New York, and with the right approach, the BRRRR model can work really well here.

I get that being close enough to drive by is a big plus, but if you're open to a market a little further out, Detroit is worth a look. It's one of the few places where you can get a mix of great cash flow and appreciation potential without breaking the bank upfront.

If you're curious and want to dig deeper, I’m happy to send over some resources that might help you get a better sense of Detroit as a market.

—Travis

Hey Josh,

I’ve been renting to Section 8 tenants in Detroit for a few years now, and I know the topic comes up a lot for landlords. It can be a great system, but there are definitely tradeoffs.

The pros? You get guaranteed rent, and it’s generally in high demand—I’ve had instances where even when I explicitly say I’m not accepting Section 8, the inquiries just keep coming in. Section 8 tenants also tend to stay longer, which means less turnover and vacancy costs. That’s a big plus for anyone trying to keep consistent cash flow.

But there are cons too: extra paperwork, annual inspections, and generally a bit more red tape. Plus, you’re often dealing with a lower-quality tenant base, which means more maintenance issues.

It’s not for everyone, but if you’re looking for consistent rent and less turnover, it could be worth considering. Just be prepared for the added challenges that come with the territory.

Happy to answer any specific questions you might have!

Best,

Travis

Visit them.

If you don't feel safe, it's D Class.

If it feels a bit sketchy but you don't feel in real danger, it's C Class.

If it feels like a place you could see yourself living, it's B Class.

If it feels like a place you could see yourself feeling the need to keep up with the Jones' it's A Class.

Hey Omer,

Welcome to BiggerPockets and great to see you diving into the BRRRR strategy! With a $150k all-in budget, Detroit is a market that could be a strong fit for what you're aiming to do.

I've been investing in Detroit since 2019, focusing heavily on BRRRR deals myself, and currently run a turnkey service specifically tailored to helping investors execute BRRRR in Detroit. We source off-market properties, manage rehabs, and set you up with property management. Just a heads up, we only work with cash-only purchases.

If you're interested in discussing Detroit as a potential market for your BRRRR investments, feel free to shoot me a DM and we can chat.

Best of luck, and I’m happy to help you get started in Detroit!

Best,
Travis

Hey Cliff,

Welcome to the forums—glad to see you're jumping in!

Finding that first market can be overwhelming, and it's totally understandable that you're getting pulled in different directions. There’s no shortage of opinions out there, and often they don’t take into account what’s best for you.

A framework I use, which I also encourage others to consider, revolves around a few key ideas:

1. Understand Your Goals: The best market for you will depend on your personal real estate goals. Whether it's cash flow, appreciation, or something else, be very specific. For example, my original goal was to create $8,000 in monthly cash flow within 5 years. It was clear and drove all my decisions.
   
2. Leverage What You Know: The best markets are often the ones you have some familiarity with. When I started investing in Detroit, I lived nearby, which allowed me to understand the market and be present when challenges arose. If investing locally isn't an option, look for a place where you have some roots—like where you've lived before or have connections. If that’s still not possible, choose a market that matches your goals and commit to learning it in-depth.
   
3. Make Sure It's Viable for You: Make sure you have the financial means and the bandwidth to invest in your chosen market. A market may look great on paper, but if you don’t have the capital to execute your strategy or the time to manage it properly, it won’t work.

For me, Detroit has been a good fit because of the favorable rent-to-price ratios and cash flow potential. Today, I’m buying properties in the $80-90k range, with rents around $1,200-$1,300 per month—resulting in a strong rent-to-price ratio of about 1.5%. The city has also shown a slight uptick in population recently, which is encouraging after years of decline.

If you want to discuss more or have questions about choosing a market, feel free to reach out. I'd be happy to share some additional resources that might help you determine what’s best for your specific situation.

Best of luck as you navigate this process—getting this right will make all the difference down the road.

Best,
Travis

Hey Vinay,

Welcome to the forums, and great to see you're interested in building a Section 8 portfolio—especially with a mission to help Veterans and families in need. That’s a powerful goal!

I've been investing in Section 8 properties in Detroit since 2019, and I’d be happy to share some insights. Here are a few thoughts based on your questions:

Markets to Target: I’ve found success in Detroit, where the rent-to-price ratios are particularly favorable for cash flow. For instance, most deals I'm doing now are $80-90k all-in, with rents around $1,200-$1,300—giving a strong rent-to-price ratio of around 1.5% or higher. The Midwest can be great for affordability and cash flow, and Detroit stands out for Section 8 because of the demand for rental units.

Mentors & Resources: Finding a mentor who has direct experience with Section 8 investing is ideal. My best advice is to look for someone who’s active in the markets you’re interested in and has been through the challenges of Section 8 (e.g., inspections, tenant management).

Analyzing Deals: With Section 8 properties, it's crucial to understand that Fair Market Rents (FMRs) aren't guaranteed, and neither are rents overall. The reality is that the FMR can change, and passing inspections can impact your rental timeline. Make sure the property will pass a Section 8 inspection without too much trouble, as these inspections can be quite thorough.

Realtors, Inspectors & Contractors: You want a team that knows the Section 8 process well. I don’t have specific recommendations, as I’m a realtor myself in Detroit but only handle off-market deals for my clients. The most valuable team members are those who understand the compliance side of Section 8 well and can help navigate that process.

Property Management: Managing Section 8 tenants comes with its own challenges and benefits, especially in communication with the housing authority. A property management company experienced with Section 8 is crucial. They should be able to navigate both the tenant relationship and the bureaucratic processes smoothly.

Feel free to reach out directly if you'd like more tailored resources or to discuss Detroit as a market. I'm happy to send some articles that dig deeper into Section 8 investing as well.

Best of luck on your journey!

Best,
Travis

Good stuff, Shaheen. I'm also in CA (up on the Central Coast). Shoot me a DM any time and I can send you some info/resources.