A $1M bridge loan in Detroit rarely buys a single house. It buys a package of fifteen or twenty rentals from an out-of-state owner who wants out, a block of flats in Southwest, or a historic Boston-Edison or Indian Village home that needs a full restoration.
In short: LendingStreet makes residential investor bridge loans from $1M to $5M+ in Detroit and southeast Michigan, from a program that starts at $150,000, with rates from 7.99%. Bridge loans are short-term and interest-only, can close in as little as 10 days, and exit by sale or refinance into DSCR, blanket or jumbo DSCR loans. Larger balances usually need a full valuation, and given Detroit price levels, most large requests are packages of homes or small buildings rather than one property.
Detroit's rental market has seen many large portfolio trades, including sales by out-of-state investors who bought homes in bulk years ago and now want to exit. Those packages often include a mix of occupied and vacant houses, some needing work and certification. Bridge financing lets a buyer close quickly, then renovate, certify and lease before refinancing.
Other uses include renovating large historic homes in Boston-Edison, Indian Village, Palmer Woods and Sherwood Forest for resale, buying 5-8 unit buildings in Midtown and New Center, and paying off maturing loans on existing portfolios.
| Scenario | Why bridge | Exit |
|---|---|---|
| Portfolio from an exiting investor | Speed; vacancies and certification gaps | Blanket portfolio loan |
| Historic home restoration | Not financeable long-term until restored | Sale or jumbo DSCR |
| Midtown 5-8 unit building | Renovation and lease-up | DSCR loan |
| Maturing portfolio loan | Payoff deadline | DSCR or blanket refinance |
This example is illustrative and not a quote. An investor buys 16 single-family rentals across Warrendale, Brightmoor and Redford from one seller for $1,568,000, about $98,000 each. Five homes are vacant and several lack current certificates of compliance. A bridge loan at 70% of the price is $1,097,600, with estimated interest-only payments of about $9,604 a month. The investor funds about $210,000 in repairs from reserves.
After repairs, certification and lease-up, all 16 homes rent at $1,350, or $21,600 a month, and the package is valued at $2,240,000. A blanket refinance at 70% of value is $1,568,000, which repays the bridge loan.
Estimated principal and interest on the blanket is about $10,697 a month. Uncapped taxes of about $5,280 and insurance of about $2,080 bring the payment to about $18,057, a portfolio DSCR near 1.20x.
Larger balances usually need a full valuation of each property. On a Detroit package, expect questions about each house's condition, occupancy, lease terms, rental registration and certificate status. Tax status matters too: confirm there are no delinquent taxes or pending foreclosures on any parcel. Title on each parcel should be clean, since older Detroit properties sometimes carry liens or gaps from past tax sales.
Bridge loans can close in as little as 10 days with a complete file. On packages, title, tax status and insurance binders for every parcel are the usual timing factors. Order title on all parcels at once, and ask the seller to clear any delinquent taxes, water bills or code liens before closing. Michigan charges state and county transfer taxes on deeds, and buyers must file a property transfer affidavit after closing; budget both on every parcel.
Michigan uncaps taxable value the year after a sale, and investors do not get the principal residence exemption. The seller's bills on a package are often lower than yours will be. Run the exit numbers on uncapped, non-homestead estimates for each property, or the refinance ratio can disappoint.
Suburban homes in a package, such as those in Redford, usually carry lower millage than Detroit homes of similar value, which helps the combined ratio on a blanket exit.
Detroit's historic districts have large homes that sell above $1M after restoration, and some renovation projects reach that level even before. Bridge loans can fund the purchase while you restore; the exit is usually a sale. Historic district rules can require approval for exterior changes, which affects budgets and timelines.
These homes can be 5,000 square feet or more, with slate roofs, plaster, original millwork and boilers. Restoration budgets often surprise first-time buyers. Bring contractor bids that reflect historic work, and allow extra term for approvals and specialty trades.
Large Detroit packages often come from owners who bought years ago from a distance and managed through third parties. Records can be thin. Expect to verify rents against bank deposits, walk every house, and check for code violations, blight tickets and water bills tied to each address. Price in the cost of bringing every house up to certification standards, not just the visible repairs.
Tenants in place are an asset when they pay and a cost when they do not. Ask for payment histories, and plan for the time it takes to resolve nonpaying tenancies under Michigan law before counting those homes as stabilized.
Package deals take time. Certification inspections, lead clearance, contractor schedules and Michigan winters can all stretch the timeline. Build a carry budget covering interest, taxes, insurance and utilities on vacant homes for the full term, and keep reserves outside the loan. Gather leases, certificates and invoices as homes are finished so the exit file is ready when the last one leases.
Send the property list, price, rent roll, certificate status, renovation budget and planned exit through the form below, or call (877) 298-1001. Larger balances are reviewed case by case.
Yes. Our residential investor bridge program runs from $150,000 to $5M+, with larger balances reviewed case by case.
Rates start from 7.99%. Pricing depends on leverage, the properties and the exit.
Yes. Packages of 1-8 unit properties can be financed together and refinanced into a blanket portfolio loan.
Larger balances usually need a full valuation of each property.
Yes, with a plan and budget to certify them. Certification is usually needed before the long-term refinance.
In as little as 10 days with a complete file. Title and tax status on every parcel are the usual timing factors.
Most packages refinance into a blanket portfolio loan once homes are repaired, certified and leased. Historic home restorations usually exit by sale.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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