Flint's small apartment buildings are mostly older frame houses converted into several units and some brick walk-ups near downtown, Carriage Town and Kettering University. Prices are very low, and Michigan's taxable value rules mean the tax bill can jump after a sale.
In short: Yes, LendingStreet finances 5 to 8 unit rental buildings in Flint with DSCR loans that qualify 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, the standard minimum DSCR is 1.0x and maximum LTV on 5-8 units varies by program. In Flint, Michigan's uncapping of taxable value after a sale, the loss of the principal residence exemption and the building's condition are the main items.
Carriage Town, the area around Kettering University and UM-Flint, and the blocks near downtown have older houses divided into five or six units and some brick walk-ups. Mott Park and the East Village area have smaller buildings and conversions.
Grand Blanc, Flushing, Fenton, Burton and Flint Township have newer small buildings at higher prices. The Genesee County Land Bank holds many vacant lots and houses in the city, which can affect nearby values.
| Area | Typical building | What to check |
|---|---|---|
| Carriage Town, downtown | Converted houses and walk-ups | Building age, code status |
| Near Kettering, Mott Park | Small buildings and conversions | Student turnover, renovation scope |
| Grand Blanc, Fenton, Burton | Newer small buildings | Higher prices, newer systems |
A building with five to eight units is still residential for our programs; nine or more units moves to commercial or multifamily financing. The loan qualifies on the debt service coverage ratio: the combined rent of every unit divided by the monthly payment of principal, interest, taxes, insurance and any HOA dues.
DSCR loans start at $150,000 with no stated maximum, the standard minimum DSCR is 1.0x and the minimum credit score is 620. You do not provide W-2s or tax returns, LLC borrowers are standard and 30-year terms are available. Maximum LTV on 5-8 unit buildings can be lower than on a single-family home or duplex, so leverage varies by program.
If you are coming from fourplexes, expect the same core process with more paperwork: a full rent roll, leases for every occupied unit and an insurance policy that covers the whole building. If your plan is to buy several smaller buildings instead, a blanket portfolio loan can combine five or more rentals under one loan.
Michigan assesses property at a 50% assessment ratio, and taxable value increases are capped each year while one owner holds the property. In the year after a sale, taxable value uncaps and resets to the assessed value, so the seller's bill can understate yours. Rentals also do not qualify for the principal residence exemption, so non-homestead school millage applies.
Michigan's state and county transfer taxes are customarily paid by the seller. Title, recording and lender costs still apply.
Check with the City of Flint and any township for rental registration and inspection requirements, and confirm the legal unit count, since many houses were converted decades ago.
After the water crisis, Flint ran a large program to replace lead service lines. Ask for records on the building's water service line and any replacement work.
This example is illustrative and not a quote. An investor buys a 6-unit converted house in Carriage Town for $300,000. The units average $675 a month, so gross rent is $4,050. Taxes are budgeted at $800 a month and insurance at $340.
At 75% LTV the loan is $225,000, estimated principal and interest is about $1,573 and the total payment is about $2,713, for a DSCR of about 1.49x. At 70% LTV the loan drops to $210,000, the total payment to about $2,608 and the DSCR rises to about 1.55x. Low prices give room in the ratio, but the tax figure must reflect uncapped taxable value and non-homestead school millage.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Loan amount | $225,000 | $210,000 |
| Gross monthly rent | $4,050 | $4,050 |
| Estimated principal and interest | $1,573 | $1,468 |
| Property taxes | $800 | $800 |
| Insurance | $340 | $340 |
| Total monthly payment | $2,713 | $2,608 |
| DSCR | About 1.49x | About 1.55x |
With six or eight tenants, small gaps add up. One unit leased below market, another sitting vacant and a third on a month-to-month arrangement can pull the qualifying rent down by several hundred dollars a month.
The appraisal on a building this size typically weighs comparable sales and the building's income. Bring current leases for every occupied unit and a realistic market rent for any vacant one, and the ratio you calculate will be much closer to the one underwriting uses.
Michigan winters are hard on roofs, gutters and heating systems. Older converted houses often have aging boilers or multiple furnaces, outdated electrical and original windows, and insurers will ask.
Some areas near the Flint River and Thread Lake are in mapped flood zones; check the FEMA map.
Hurley Medical Center, McLaren Flint, Ascension Genesys, General Motors operations, Kettering University and UM-Flint support rental demand.
Prices are very low, so many Flint five to eight unit buildings trade below $350,000. That can make the ratio look strong, but loan size, condition and the uncapped tax bill all need a close look. Remember that DSCR loans start at $150,000.
Underwriting goes faster when the rent and expenses are documented up front. Gather the following, then get a quote through the form below or by phone at (877) 298-1001.
LendingStreet is an investment property financing company. Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, unit mix, rent roll and price, and we will run the ratio at a few loan amounts and come back with options, including sub-1.0 DSCR programs where they fit.
Michigan resets taxable value to the assessed value in the year after a sale, so your tax bill can be much higher than the seller's.
No. Rentals pay non-homestead school millage, which raises the tax bill.
Yes. DSCR loans start at $150,000.
Yes, if the building has 5 to 8 legal units and the rent supports the payment.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
On our programs, buildings with up to 8 units are residential. Nine or more units is commercial financing.
The standard minimum is 1.0x, meaning the rent covers the full monthly payment. Sub-1.0 DSCR programs exist with different pricing and leverage.
Loans start at $150,000 with no stated maximum. Maximum LTV on 5-8 unit buildings can be lower than on 1-4 units and varies by program.
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