Most Detroit rentals are too inexpensive to finance one at a time with a DSCR loan. That is exactly why the blanket loan exists: eight $150,000 houses that cannot each support their own loan can together support one.
In short: LendingStreet's blanket portfolio loans combine five or more Detroit-area rentals, each with 1 to 8 units, into one loan with one closing, one payment and portfolio pricing. The loan qualifies on combined portfolio cash flow, with no tax returns, and release provisions let you sell a single house later. Because our $150,000 minimum applies to the whole loan, Detroit homes priced well below that can be financed as part of a portfolio.
Detroit has some of the lowest single-family prices of any large U.S. city, and solid brick homes in established neighborhoods often sell for well under $200,000. At typical leverage, many would produce a loan below $150,000 on their own. Investors who bought with cash or with small local loans often end up with equity they cannot easily tap.
A blanket loan solves that by sizing one loan on the combined value and rent of the group. It also replaces several small loans and escrow accounts with one payment.
On the west side, Warrendale, Grandmont-Rosedale, Bagley and the University District have brick bungalows and colonials with long-term renters. On the east side, East English Village and Morningside offer larger brick homes at moderate prices. Southwest Detroit and Hamtramck have two-family flats that add rent per property.
Suburban rentals in Dearborn Heights, Redford, Warren and other inner-ring suburbs usually have lower tax millage than the city and can steady the combined ratio. They also tend to have more recent comparable sales, which makes values easier to support at appraisal.
| Area | Typical rental | Portfolio role |
|---|---|---|
| Warrendale, Bagley, University District | Brick bungalows and colonials | Core long-term rentals |
| Grandmont-Rosedale | Brick colonials and Tudors | Stable tenants; higher values |
| East English Village, Morningside | Larger brick homes | Good rent per house |
| Southwest, Hamtramck | Two-family flats | Higher rent per property |
| Dearborn Heights, Redford, Warren | Suburban ranches | Lower millage; steadies ratio |
This example is illustrative and not a quote. An investor owns eight rentals worth $1,273,000 combined, renting for $12,300 a month. Every one of the eight would produce a loan under $150,000 on its own at 75% LTV, so none could be financed individually with a DSCR loan.
At 75% of combined value, the blanket loan is $954,750. Estimated principal and interest is about $6,513 a month. Taxes total about $2,750 a month and insurance about $1,040, for a total payment near $10,303 and a portfolio DSCR of about 1.19x.
| Property | Value | Rent | Monthly taxes |
|---|---|---|---|
| Warrendale brick bungalow | $128,000 | $1,300 | $300 |
| Grandmont-Rosedale colonial | $175,000 | $1,600 | $400 |
| East English Village colonial | $165,000 | $1,550 | $383 |
| Dearborn Heights ranch | $185,000 | $1,600 | $358 |
| Redford brick ranch | $150,000 | $1,450 | $308 |
| Morningside bungalow | $120,000 | $1,250 | $283 |
| Bagley two-family flat | $190,000 | $2,100 | $417 |
| Warren ranch | $160,000 | $1,450 | $300 |
| Total | $1,273,000 | $12,300 | $2,750 |
Michigan caps taxable value increases while you own a property, then uncaps them when it sells. For homes you have held for years, current bills may be modest. For homes bought recently, the uncapped bill applies, and investors do not get the principal residence exemption. Detroit's millage is high compared with most suburbs.
Use the actual current bill for each property, and for any recent purchase, confirm the uncapped amount. That mix of older and newer bills is part of why a portfolio ratio can look different from the sum of the listing sheets.
Detroit expects every rental to be registered, inspected and hold a certificate of compliance, with lead clearance for older homes. Each Detroit property in a blanket should have current registration and certification. The city has stepped up enforcement, and missing certificates can affect your ability to collect rent. Suburbs have their own inspection programs.
Each property gets an allocated share of the loan, usually based on its value. To sell one, you pay a release amount, typically above that share, and the lien comes off. Releases also work for refinancing a single property out of the blanket onto its own loan, for example after a renovation lifts its value. The remaining portfolio usually has to keep meeting the program's ratio and leverage limits. Ask for the release terms up front, especially if you plan to sell appreciating homes in areas like Grandmont-Rosedale while holding steadier rentals.
Most Detroit rentals were built before 1950. Insurers and appraisers look at roofs, electrical, plumbing and basements, and vacant homes in a portfolio may need separate vacant-property coverage until they are leased. Homes with updated systems insure more easily and appraise better. Ask about sewer backup coverage, given recent basement flooding in heavy storms, and collect declarations pages for every property early.
For Detroit investors the choice is often made for them: if most homes are worth under $200,000, separate DSCR loans are not available on many of them, and the blanket is the practical long-term option. Where a few properties are worth more, such as a renovated Corktown or Grandmont-Rosedale home, those can stand alone on individual loans, which makes them easier to sell later without a release paydown.
Many investors split the difference: a blanket for the core of lower-priced, long-term rentals and individual loans for the higher-value homes they may sell into Detroit's recovering owner-occupant market.
Investors who buy Detroit homes with cash, renovate them and lease them up often wait until they have five or more stabilized rentals, then refinance them together. Keep the paperwork clean as you go: certificates of compliance, leases, repair invoices and tax bills for each address. A complete file speeds the refinance and helps support the values the appraiser assigns to renovated homes on blocks with few recent sales.
Send a rent roll, tax bills, certificates of compliance, insurance declarations and current loan balances through the form below, or call (877) 298-1001. We will run the combined ratio and show which properties help and which hold it back.
Yes, in a blanket portfolio loan. The $150,000 minimum applies to the loan, not to each property.
Five or more investment properties, each with 1 to 8 units.
Detroit expects every rental to be registered and certified. Have them current for each property in the blanket.
Michigan uncaps taxable value on sale, and investors do not get the principal residence exemption.
Yes. Homes in Dearborn Heights, Redford, Warren and other suburbs can be combined with Detroit properties.
You pay a release amount set in the loan documents, and that house comes off the blanket.
Yes. Cash-out goes up to 75% LTV on DSCR programs, often lower on larger balances, and seasoning varies by program.
No. The loan qualifies on combined cash flow, with a 620 minimum credit score and LLC borrowers standard.
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