In Lansing, a lot of small multifamily housing looks like a single-family home from the street. Upper and lower flats, houses split into side-by-side units, and small fourplexes are tucked into older neighborhoods on the Eastside, Westside and near downtown. Prices are low enough that the loan minimum, not the leverage limit, can be the first hurdle.
In short: LendingStreet finances Lansing-area duplexes, two-flats, triplexes and fourplexes with DSCR loans qualified on the combined rent of all units, with no W-2s or tax returns and LLC borrowers allowed. Loans start at $150,000 with no stated maximum, purchases go up to 80% LTV, cash-out refinances up to 75% and the standard minimum DSCR is 1.0x. Because Michigan uncaps taxable value after a sale, budget the new owner's tax bill, not the seller's.
Older two-flats, with one unit on each floor, and converted houses are common on the Eastside between downtown and Frandor, on the Westside, and in the neighborhoods around Old Town and REO Town. Many were built in the 1910s through 1940s for auto and government workers. Purpose-built side-by-side duplexes and small fourplexes from the 1960s and 1970s appear in South Lansing, Lansing Township and parts of Delta Township.
Near Michigan State, duplexes rent to students and staff, but East Lansing's licensing and occupancy rules limit how many unrelated tenants a unit can house, which directly affects rent.
| Building type | Where it is common | Watch for |
|---|---|---|
| Upper and lower two-flat | Eastside, Westside, Old Town | Separate furnaces and meters, stairs to upper unit |
| Converted older house, 2-3 units | Near downtown and REO Town | Permits for the conversion, egress |
| 1960s-70s side-by-side duplex | South Lansing, Lansing Township | Roof, sewer lateral, basement water |
| Small fourplex | Delta Township, near major corridors | Shared systems, parking, laundry |
| Student duplex | Near MSU in East Lansing | Rental license, occupancy limits |
Lansing's zoning code determines where two-family and multi-family buildings are allowed, and the city requires rental units to be registered and inspected. East Lansing has its own rental license and occupancy limits, and townships such as Delhi, Delta, Meridian and Lansing Township each have their own codes.
Confirm that every unit in the building is legal and registered. A unit added without permits may not be counted by the appraiser, and that rent would not count in the DSCR.
Tenants for Lansing duplexes include state government workers, hospital staff, GM plant workers, students at MSU and Lansing Community College, and young professionals downtown. A DSCR loan adds the rent from every unit, from signed leases or the appraiser's market rent, and divides it by the full monthly payment.
If you pay heat or water for both units, that cost is not in the ratio but does come out of your cash flow. Separate furnaces and meters help on both fronts. Units near downtown, the Capitol and the hospitals tend to lease fastest, while larger units in South Lansing compete on space and parking.
This example is illustrative and not a quote. An investor buys an upper and lower two-flat on the Eastside for $210,000. The units rent for $1,050 and $1,000, or $2,050 combined. Taxes are budgeted at $400 a month after uncapping and without the principal residence exemption, and insurance at $120.
At 80% LTV the loan is $168,000, which clears the $150,000 minimum. Estimated principal and interest is about $1,175, so the total payment is about $1,695 and DSCR is about 1.21x. If the purchase price were under $187,500, the loan at 80% would fall below the minimum, which is why some Lansing investors combine properties or buy fourplexes instead.
| Item | Amount |
|---|---|
| Purchase price | $210,000 |
| Loan at 80% LTV | $168,000 |
| Estimated principal and interest | $1,175 |
| Property taxes (non-homestead) | $400 |
| Insurance | $120 |
| Total monthly payment | $1,695 |
| Combined rent | $2,050 |
| DSCR | About 1.21x |
While one owner holds a Michigan property, its taxable value can rise only by the lesser of inflation or 5% a year. After a sale, the cap is removed and taxable value resets to half the assessor's estimate of market value. A long-held duplex can see its tax bill jump sharply in the first full year after you buy.
Rental property also pays school operating millage that a principal residence is exempt from. City of Lansing millage is generally higher than in the surrounding townships, so compare carefully when two duplexes are priced alike.
Most Lansing two-flats are wood-frame houses more than 70 years old. Appraisers and insurers will look at the systems and the separation between units.
Michigan's state and county real estate transfer taxes are usually paid by the seller, but the contract controls. As the buyer, plan for title, recording, appraisal and escrow deposits for taxes and insurance, which can be significant given the size of the post-sale tax bill.
Lansing has some five to eight unit buildings near downtown and along major corridors. Those are residential, but leverage can be lower and reviews more detailed; see our Lansing 5-8 unit page. Nine or more units is commercial, covered at /multifamily-loans.html. If you own five or more rentals, a blanket loan can combine them, which also solves the minimum loan problem for lower-priced buildings.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, price, rent for each unit and the rental registration status through the form below, or call (877) 298-1001. We will run the ratio on a realistic Michigan tax figure and show options next to our Michigan 2-4 unit programs.
Yes. The loan is qualified on the combined rent of both units, with no W-2s or tax returns, and LLC borrowers are standard.
At 80% LTV the loan would be under the $150,000 minimum. Options include a larger building, a fourplex, or combining several rentals in a blanket loan.
Michigan uncaps taxable value after a sale, and rentals pay school operating millage that a principal residence does not. Ask the assessor for an estimate at your price.
Yes. East Lansing's rental licensing and occupancy limits cap how many unrelated tenants can live in a unit, which limits rent on student rentals.
The City of Lansing requires rental registration and inspections. Have current certificates for each unit before closing, and ask the seller for the latest inspection results so repair items do not surprise you.
Up to 80% LTV on a purchase and up to 75% on a cash-out refinance, subject to the 1.0x standard minimum DSCR and the $150,000 loan minimum.
Not always, but separate heat and meters make units easier to rent and lower your operating costs. In a Michigan winter, a shared boiler you pay for can be one of the largest expenses in a two-flat.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.