If you’re looking to buy your first multifamily investment property in Metro Detroit, this story is exactly what you need. As a mentor and investor actively scaling toward 1,000 units, I want to walk you through acquiring a 14-unit property—an inspiring example of how the right strategy and support can fast-track your real estate success.
Whether you’re aiming for your first 5-unit property or scaling toward larger multifamily investments, this blog will give you actionable takeaways to help you avoid common mistakes and build lasting wealth through Metro Detroit real estate.
Real Advice From Real Operators (Not Just Online “Gurus”)
There’s no shortage of online advice out there, but here’s the truth: not all of it comes from people who actually own and operate properties. My wife and I aren’t armchair investors—we currently own and manage 257 units, and with our latest acquisition under contract, we’re closing in on 400 units.
We’re living this every day. And that’s the difference. I’m not here to sell you hype or unrealistic dreams; I’m here to show you how to buy smart, operate well, and scale intentionally.
The First Deal Blueprint: Why 5 to 25 Units is the Sweet Spot
If you’re new to real estate investing, the idea of jumping into a 100-unit apartment building might sound thrilling. But here’s what I tell every client: start where you can learn the game without risking it all.
For most new investors in the Metro Detroit area, that sweet spot is a 5 to 25-unit deal. It’s big enough to benefit from economies of scale, yet small enough to manage without institutional-level infrastructure.
Even if you have millions in the bank, I’d still suggest starting smaller—because these are the deals where you gain the operational experience that makes or breaks your long-term success.
How Small Rent Increases Create Massive Value
Let’s break this down with simple math. In multifamily investing, value is based on Net Operating Income (NOI) and capitalization rates (cap rates). When you increase NOI—either by raising rents or cutting expenses—you directly increase the property’s value.
For example:
- A $100 rent increase across 5 units = $6,000 more NOI per year.
- At a 7% cap rate, that’s an $85,000 increase in property value.
Now scale that:
- A $100 increase across 20 units = $24,000 more NOI.
- At the same cap rate, that’s a $342,000 boost in value.
That’s the beauty of multifamily investing in Metro Detroit—you’re not just earning rent checks; you’re creating equity out of thin air.
The Power of Picking the Right Location
If there’s one thing I emphasize again and again to investors, it’s this: do not compromise on location.
This 14-unit deal my client closed is in a strong, high-demand Metro Detroit neighborhood where I’ve personally invested before. The reason? Great locations attract quality tenants, support long-term rent growth, and protect your downside in market shifts.
Buying a “cheap” property in a rough area might feel like a win at first—but trust me, the headaches that come from poor tenant retention and high turnover aren’t worth it.
Unlike stocks, you can’t just click a button and “sell” your way out of a bad real estate deal. So be patient, do your due diligence, and always choose the better location—even if it means buying fewer units to start.
The Secret Sauce: Operational Efficiency
Larger deals often come with hidden opportunities to boost cash flow—not by raising rents, but by lowering expenses.
Take this example: On one of my 100-unit buildings, the previous owner had a $15,000 contract for basic services. My wife’s team renegotiated it to $7,000. That’s $8,000 of NOI added overnight—pure value creation.
This kind of upside often exists in 14-unit to 100-unit properties that have been managed inefficiently by large companies. Smaller properties, especially mom-and-pop-owned duplexes and triplexes, typically don’t offer the same room for optimization.
So if you’re serious about growing your portfolio in Metro Detroit, pay close attention to the operational side of your investments. That’s where real money is made.
Why Now is Still a Great Time to Buy
Every year someone asks, “Is now a good time to invest?”
My answer is simple: the best time to start was yesterday; the second-best time is today.
2020, 2021, 2022, 2023, and 2024 all turned out to be amazing buying opportunities—for those who took action. If you’re still on the sidelines, chances are you’re stuck in one of three areas:
- Confidence – You’re unsure you’re ready
- Clarity – You don’t know what makes a good deal.
- Connections – You’re not seeing the best opportunities.
That’s where a mentor comes in. The difference between guessing your way through real estate and growing a powerful portfolio is having someone who’s already done it guide you step-by-step.
Let Me Help You Close Your First (or Next) Multifamily Deal
If you’re serious about buying your first multifamily property—whether it’s a 5-unit in Royal Oak or a 20-unit in Ferndale—I want to help you get there.
I’ve mentored dozens of Metro Detroit investors and helped them turn real estate into a real source of freedom for themselves and their families. My goal? To mentor 1,000 new investors to their first deal.
If that sounds like something you want, let’s talk. You can learn about my coaching program here.
Final Thoughts
You don’t need a trust fund or decades of experience to succeed in Metro Detroit real estate. You just need the right strategy, the right guidance, and the courage to take the first step.
Let’s build your legacy—one deal at a time.
