The Detroit duplex is usually a two-family flat: one unit on the first floor, one upstairs, separate front doors on a shared porch. They were built by the tens of thousands for factory workers in the early 1900s, and many still rent well today.
In short: LendingStreet finances Detroit two-family flats, triplexes and fourplexes with DSCR loans that qualify on the combined rent of all units, with no tax returns and LLC borrowers welcome. Loans start at $150,000, purchases go up to 80% LTV and cash-out to 75% LTV, and the standard minimum DSCR is 1.0x. In Detroit, the items to nail down before closing are the city certificate of compliance for each unit and the uncapped, non-homestead tax bill you will pay after you buy.
Two-family flats are concentrated in Southwest Detroit and Mexicantown, the North End, Islandview, Virginia Park and the areas near the old Packard and Dodge plants, as well as in Hamtramck, which is its own city surrounded by Detroit. Woodbridge and Midtown have larger Victorian homes split into three or four units and small brick apartment buildings. Many of these blocks lost buildings over the years, so the condition of the street matters as much as the building.
Prices vary widely. A flat needing work can sell far below our loan minimum, while a renovated Woodbridge fourplex can sell for several hundred thousand dollars.
| Stock | Where | What to watch |
|---|---|---|
| Two-family flats | Southwest, North End, Hamtramck | Separate utilities; certificate for each unit |
| Converted Victorians | Woodbridge, Midtown | Legal unit count; older systems |
| Brick fourplexes | Midtown, near New Center | Boiler and roof condition |
| Suburban duplexes | Ferndale, Hazel Park, Dearborn | Lower millage; higher prices |
Detroit's zoning code includes two-family residential (R2) districts, and many flats sit in those districts or predate current zoning. Confirm the zoning, the assessor's record and the city rental registration agree on the number of units. Attic or basement units added without permits will not count.
Hamtramck, Dearborn and other cities have their own zoning and rental rules, so check the specific city if the property is outside Detroit. Hamtramck in particular has a dense stock of two-family houses on narrow lots and its own rental inspection requirements.
If a flat has been vacant for a long time, ask whether its legal two-family status is intact and whether utilities and services can be restored without major work.
Detroit expects every rental unit to be registered, inspected and hold a certificate of compliance. Most flats were built before 1978, so lead clearance is generally part of the process. The city has stepped up enforcement in recent years. Ask the seller for current certificates, or budget the time and repairs to obtain them; a building without certification can be harder to lease and to finance.
This example is illustrative and not a quote. A renovated two-family flat in Southwest Detroit sells for $215,000, with each unit renting for $1,150. At 75% LTV the loan is $161,250, estimated principal and interest is about $1,100, uncapped non-homestead taxes are about $425 and insurance about $160. The total payment is about $1,685 and the DSCR about 1.36x.
A renovated four-unit Victorian in Woodbridge sells for $520,000, with four units at $1,350. At 75% LTV the loan is $390,000, principal and interest is about $2,660, taxes about $900 and insurance about $260. The total payment is about $3,820 and the DSCR about 1.41x.
| Item | Southwest flat | Woodbridge fourplex |
|---|---|---|
| Price | $215,000 | $520,000 |
| Loan at 75% LTV | $161,250 | $390,000 |
| Combined rent | $2,300 | $5,400 |
| Estimated principal and interest | $1,100 | $2,660 |
| Taxes | $425 | $900 |
| Insurance | $160 | $260 |
| DSCR | About 1.36x | About 1.41x |
Michigan caps taxable value increases while an owner holds a property, then uncaps it after a sale. Investors also do not get the principal residence exemption. On a flat where the seller lived in one unit, the bill can rise sharply the year after you buy. Use the city's estimate of the uncapped, non-homestead bill when you run the numbers, and file the property transfer affidavit on time after closing.
Many flats have separate furnaces and meters for each unit, which keeps heat on the tenant and is one reason flats remain popular with Detroit landlords. Others share a boiler or water service. Utilities are not part of the DSCR formula, but landlord-paid utilities reduce real cash flow. Inspect basements and sewer lines closely; heavy storms in 2021 caused widespread basement flooding, and sewer backup coverage is worth pricing.
Tenants include workers at the hospitals in Midtown and New Center, Wayne State students and staff, employees of the auto plants and suppliers around the city, and families who want more space than an apartment. Southwest Detroit has a large, established community and steady demand for well-kept flats close to Vernor Highway's businesses. Woodbridge and Midtown units attract younger renters who want to walk to campus, restaurants and the QLine.
Renovated units with updated kitchens, separate utilities and off-street parking lease fastest. Appraisers in Detroit often have few recent comparable sales on a block, so documenting your renovation and recent leases on similar units helps support both rent and value.
Many Detroit flats sell for less than our minimum loan supports at typical leverage. Options include buying renovated buildings, focusing on larger fourplexes, buying in suburbs with higher values, or combining five or more rentals in a blanket portfolio loan. A bridge or fix and flip loan can fund a renovation, with a DSCR refinance after the units are certified and leased.
Some Midtown and New Center buildings have five to eight units. They remain residential on our programs, with max LTV that can be lower and varies by program; see our Detroit 5-8 unit page. Nine or more units is commercial.
To start, send the address, unit count, rents, certificate status, tax estimate and price through the form below, or call (877) 298-1001.
Yes, if the loan is at least $150,000 and the combined rent covers the payment at 1.0x or better on standard programs.
Detroit expects every rental unit to be registered and certified. Have them current or plan the work to obtain them.
Michigan uncaps taxable value after a sale, and investors do not get the principal residence exemption.
Yes. Hamtramck has its own rental and zoning rules, so confirm them for the property.
At 75% LTV the loan may fall below our minimum. Consider a renovated or larger building, or a blanket loan for five or more rentals.
Yes. Cash-out goes up to 75% LTV, and seasoning varies by program.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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