In Flint, land is cheap and finished values are low, so new construction only pencils in the right places. In the southern suburbs, where buyers and renters pay for new homes, it can work well.
In short: LendingStreet finances ground-up construction of 1-8 unit investment property in the Flint area, including Grand Blanc, Fenton, Flushing, Davison, Burton and city neighborhoods where values support it. Loans are sized on loan-to-cost, funded in inspected draws and priced per project. In Genesee County, the honest test is whether the finished value and rent cover the cost of building, and that answer varies block by block.
Grand Blanc and Grand Blanc Township, Fenton and Mundy Township on the south side have the highest values and the most new construction, close to US-23 and I-75. Flushing, Davison and Swartz Creek offer smaller-town markets with newer subdivisions.
In Flint, the College Cultural area, Carriage Town and Mott Park have historic homes and some infill. The Genesee County Land Bank holds a large inventory of vacant lots, but in many city neighborhoods the finished value of a new home is below what it costs to build.
| Area | Typical build | Main concern |
|---|---|---|
| Grand Blanc, Mundy Township | Spec and build-to-rent homes | Lot prices, school demand |
| Fenton | Higher-end spec homes | Land cost |
| Flushing, Davison, Swartz Creek | Single-family and duplexes | Rent and value support |
| Flint city neighborhoods | Selective infill | Value often below cost |
Health systems, the remaining auto plants, Kettering University and the University of Michigan-Flint employ many renters. Newer homes in the southern suburbs lease to households who want good schools and modern systems.
Duplexes and single-family rentals in Grand Blanc and Fenton can command rents well above older Flint homes, which is what makes the construction math work there.
New construction also avoids the deferred-maintenance problems common in older Flint housing: aging roofs, old wiring and outdated furnaces. For a buy-and-hold investor, lower repair costs in the first decade are part of the case for building rather than buying.
Each city and township issues its own permits. In Flint, the city has replaced lead service lines across much of the system since the water crisis; confirm the service line material and connection at your lot.
Land bank lots are sold under land bank terms, which may include build timelines. Check whether the lot has old foundations or debris before you budget.
Michigan winters also shape the schedule. Footings must be below frost depth, and most builders try to have a house enclosed before December so interior trades can keep working through the cold months. A late-fall start without that plan can add months of interest.
Every Flint construction file starts with the budget. The loan is sized on loan-to-cost across land, vertical construction and soft costs, and the terms are set for that specific project rather than from a rate sheet.
After closing, the builder draws funds as work is completed and inspected. Plan for the gap between paying a subcontractor and receiving the draw; investors who budget a cash cushion for that timing rarely stall.
Michigan taxes property on taxable value, which is capped from year to year but resets to the state equalized value, set at a 50% assessment ratio of market value, when a property changes hands. A new home is added at its completed value.
Rentals do not qualify for the principal residence exemption, so investors pay additional school operating millage that owner-occupants do not. That difference is significant, so budget the non-homestead rate.
This example is illustrative and not a quote. An investor builds two two-bedroom units with garages on a lot zoned for two-family use. Land costs $45,000, hard construction costs $350,000 and soft costs $28,000, for a total project cost of $423,000. For illustration the loan covers 80% of cost, or $338,000, and the investor brings $85,000 plus closing costs; actual LTC is set per project.
Once built and leased at $3,600 a month, the property is valued at $480,000. A 75% DSCR refinance of $360,000 retires the construction loan. Estimated principal and interest runs about $2,456; add taxes of about $700 and insurance of about $140 and the payment is about $3,296, a DSCR of about 1.09x.
The same duplex built in a Flint neighborhood with weaker comps might appraise far below cost, which is why location decides these deals in Genesee County.
| Item | Amount |
|---|---|
| Land | $45,000 |
| Hard costs | $350,000 |
| Soft costs | $28,000 |
| Total project cost | $423,000 |
| Construction loan (80% of cost, illustrative) | $338,000 |
| Investor cash before closing costs | $85,000 |
| Completed value | $480,000 |
| DSCR refinance (75% of value) | $360,000 |
| Monthly rent | $3,600 |
| Estimated principal and interest | $2,456 |
| Taxes and insurance | $840 |
| Estimated DSCR | About 1.09x |
Our investor loans are business-purpose loans on non-owner-occupied property, covering 1 to 8 units: spec homes, build-to-rent houses, infill duplexes and fourplexes and small 5-8 unit buildings. Buildings of 9 or more units are commercial and are handled through our commercial loan program.
Most investor construction in the Flint area is built to hold. A DSCR refinance on completed rent repays the construction loan.
Spec homes for sale work best in Fenton and Grand Blanc, where buyers pay for new construction and recent sales support the price.
A complete package gets a clearer answer. Use the form below or call (877) 298-1001 with the Flint site, the plans, the budget and your exit. We will tell you quickly whether the project fits and how the draws would work.
In some places. In the southern suburbs, yes. In many city neighborhoods, finished values are below building cost. Check comps carefully.
Yes, if you own or have the lot under contract and meet land bank terms, with plans, permits and an experienced builder.
In stages. Each draw follows an inspection of completed work, so plan cash for the time between paying trades and receiving the draw.
Yes. Rentals do not get the principal residence exemption and pay additional school millage.
Confirm the service line and connection at the lot. The city has replaced many lead lines since the water crisis.
Yes. Many investors refinance a finished rental into a DSCR loan that qualifies on the property's rent, with 30-year terms available.
No. These loans are for investment property only: spec homes, rentals and small multi-unit buildings.
See our Michigan construction loans page.
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