In Michigan, the tax bill after you buy can look very different from the seller's. A purchase uncaps taxable value, and investors pay non-homestead school taxes, which matters on every package of Detroit-area rentals and every Lake Michigan vacation home.
In short: LendingStreet provides Michigan bridge loans from $1M to $5M+ on 1-8 unit investment properties, with rates from 7.99% and closings in as little as 10 days. Larger balances are reviewed case by case and usually need a full valuation. Michigan investors use them for rental packages in metro Detroit, student and professional rentals in Ann Arbor and Grand Rapids, and lakeshore homes, then refinance into DSCR or jumbo DSCR loans.
In Detroit, Corktown, Woodbridge, West Village, Indian Village and Boston-Edison have historic homes and small multi-unit buildings. Suburbs such as Royal Oak, Ferndale, Berkley, Dearborn, Warren and Livonia have large numbers of single-family rentals, and Birmingham and Bloomfield Hills have high-value homes.
Ann Arbor has strong rental demand from the University of Michigan and its medical center. Grand Rapids neighborhoods such as Heritage Hill and Eastown attract investors, as do Lansing, Kalamazoo and Traverse City. Along Lake Michigan, Saugatuck, South Haven, Holland and Traverse City have vacation rentals.
Flint, Saginaw and other lower-priced cities can offer high rents relative to price, but a $1M+ bridge there means a large number of homes, and condition varies widely from house to house.
| Area | What a $1M+ bridge usually buys | Main local check |
|---|---|---|
| Detroit neighborhoods | Packages of homes, small multi-unit | City rental registration and certificate |
| Royal Oak, Ferndale, Dearborn, Warren | Groups of suburban rentals | Local rental inspections |
| Ann Arbor | Student and professional rentals | City rental licensing |
| Grand Rapids, Kalamazoo, Lansing | Rental portfolios | Older housing condition |
| Saugatuck, South Haven, Traverse City | Vacation homes | Local STR caps and permits |
Michigan files above $1M usually involve:
The program covers 1-8 unit investment property from $150,000 to $5M+, with rates from 7.99% and interest-only payments. We size large balances deal by deal rather than off a rate sheet, looking at value, cost, experience and the exit.
Plan on a full valuation for a large balance. That is the main item that sets the calendar; when it is ordered right away and the title work is clean, closings can happen in as little as 10 days.
Under Proposal A, a property's taxable value rises slowly while one owner holds it, but it uncaps in the year after a sale, jumping toward half of market value. Investors also pay the non-homestead school operating millage that owner-occupants avoid through the principal residence exemption. Together, these can make your bill much higher than the seller's.
Michigan charges state and county transfer taxes, customarily paid by the seller. Recording fees apply to each mortgage. Budget taxes on the uncapped, non-homestead estimate for every property in a package.
Detroit property tax rates are among the highest in the state, while some suburbs are lower. On a package that mixes city and suburban homes, estimate each one separately rather than using an average.
This example is illustrative and not a quote. An investor buys twelve single-family rentals in Warren, Roseville and northwest Detroit from one landlord for $1,560,000. Nine are leased; three need repairs to get city certificates.
The three homes are repaired, pass inspections and are leased, and the package refinances on a blanket loan. The refinance at 75% LTV comes to $1,238,000, which repays the $1,170,000 bridge balance and returns about $68,000.
Taxes are budgeted on uncapped, non-homestead values, which is why they are such a large part of the payment. Using the sellers' old bills would overstate the ratio.
| Line item | Amount |
|---|---|
| Bridge loan | $1,170,000 |
| Estimated monthly interest-only payment | $10,237 |
| Hold period | 6 months |
| Value at refinance | $1,650,000 |
| DSCR loan at 75% LTV | $1,238,000 |
| Estimated principal and interest | $8,551 |
| Taxes | $3,100 |
| Insurance | $1,300 |
| Total monthly payment | $12,951 |
| Monthly rent | $17,400 |
| DSCR | 1.34x |
Detroit requires rental registration and a certificate of compliance, with inspections, and has enforced these rules more strictly in recent years. Other cities, including Ann Arbor, Royal Oak and Grand Rapids, have rental licensing or inspections. Confirm status for every property.
Michigan winters are hard on roofs, furnaces and plumbing. On a package bought in fall, budget reserves for repairs and vacancy during winter.
Ann Arbor requires rental housing certificates and inspections, and student leases there are often signed many months ahead. A spring bridge purchase can line up with the next fall lease cycle.
Many Lake Michigan towns, including Saugatuck, South Haven and Traverse City, regulate short-term rentals with permits, caps or zone limits, and rules have tightened in some places. Confirm a permit is available before buying for vacation income.
Vacation rental income on the lakeshore is concentrated in summer. If the refinance will use short-term income, a full year of history or a third-party projection gives a more realistic picture.
Shoreline properties may also face erosion or high-water risks. Ask about erosion history and insurance before closing.
Every bridge needs a way out. Most large files end in a sale or a refinance into a 30-year DSCR loan that qualifies on rent, with no W-2s or tax returns and LLC borrowers standard. Balances of about $1.5M and up move into jumbo DSCR, where max LTV can be lower and varies by program.
Run the DSCR math before you close the bridge. The standard minimum is 1.0x, meaning rent covers principal, interest, taxes, insurance and any HOA dues.
The fastest large files arrive complete. Have these ready when you request a quote:
Taxable value resets toward half of market value in the year after a sale, so your bill can rise sharply. Budget on the uncapped figure.
Yes. Non-homestead property pays school operating millage that owner-occupants avoid.
Yes. Detroit requires rental registration and a certificate of compliance with inspections.
On some programs, yes, if local rules allow short-term rentals and the income is documented or projected.
In most cases. A seven-figure balance usually needs an appraisal or similar report, so we order it as soon as terms are accepted.
In as little as 10 days when the valuation, title and entity documents move quickly. Complex packages can take longer.
The program is listed at $5M+, so larger requests are possible and reviewed case by case.
Yes. We offer DSCR and jumbo DSCR loans as the takeout, qualifying on the property's rent with LLC borrowers standard.
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