Detroit is not a discount Chicago — it is a title, block, and carry market where the same renovated ranch trades $165K on one street and $95K two blocks east. Wayne County investors who import suburban Michigan comps misprice every file.
Hard money lenders in Detroit fund what local banks avoid: water shutoff liens, partial occupancy, auction timelines, and rehab scopes that start before conventional underwriting finishes ordering an appraisal.
Statewide context: Michigan hard money · Michigan fix and flip · Michigan DSCR. Luxury spec path: luxury new construction loans.
Detroit market conditions (2026)
Detroit carries one of the lowest big-city price points in the country. The 2024 American Community Survey puts the median owner-occupied home value at $95,900 and the median gross rent at $1,091 (Census Reporter, ACS 2024 1-year). The city has 645,702 residents, and about 51% of occupied homes are owner-occupied. The housing is old: roughly 78% of units were built before 1960, and 37% before 1940. Expect mechanical, roof, and sewer scope on most files.
At that basis, carry cost and clean title — not price — decide the deal. Block-level comps swing value far more than any citywide number, which is why the $165K-vs-$95K spread two blocks apart is the whole game here.
Wayne County listing data, September 2026
| Metric | September 2026 | A year earlier |
|---|---|---|
| Median list price | $163,875 | $159,950 |
| Median days on market | 47 | 43 |
| Active listings | 5,024 | 4,846 |
Sources: Realtor.com data via FRED for list price, days on market, and active listings. These figures cover all of Wayne County, including Dearborn, Livonia, and the Grosse Pointes, so they run well above Detroit proper.
Closed-sale values are still rising. The FHFA index for the Detroit-Dearborn-Livonia division rose 5.2% from Q2 2025 to Q2 2026 (FRED / FHFA). The Detroit metro unemployment rate was 5.4% in August 2026 (FRED / BLS). That is higher than many Midwest metros, so underwrite tenant turnover and collections conservatively.
Who invests in Detroit — and why
| Profile | Playbook |
|---|---|
| Auction operator | Wayne County tax sale and courthouse wins — 7-day proof of funds |
| BRRRR sponsor | Sub-$180K all-in duplex → $1,200–$1,450/side rent → DSCR exit |
| Value-add flipper | Cosmetic + mechanical on interior streets — ARV $145K–$235K |
| Small MF reposition | 4–12 unit east-side — per-door basis under $65K all-in |
Detroit rewards block walks and quiet title discipline — not Zillow radius comps.
2026 price bands (realistic)
| Asset | Acquisition | Rehab | ARV / rent |
|---|---|---|---|
| SFR value-add | $55K–$95K | $35K–$65K | Resale $145K–$195K |
| Duplex heavy | $75K–$130K | $45K–$75K | $185K–$245K; $2,400–$2,900/mo gross |
| Corktown / Midtown row | $180K–$320K | $80K–$150K | $320K–$480K — thinner margin |
| East-side 4-unit | $140K–$260K | $90K–$160K | Hold-weighted — verify occupancy |
Proposal A uncapping at transfer raises property tax line — model reassessment on every hold exit.
Programs in the Detroit metro
| Program | Use case |
|---|---|
| Hard money | Speed + distressed condition |
| Fix and flip | Sub-$250K finished SFR to O-O or landlord |
| DSCR | Permanent debt after lease-up |
| Luxury bridge | Premium Corktown spec if DOM extends |
Loan terms (2026)
| Parameter | Range |
|---|---|
| Rates | 8.99%–13.5% IO |
| LTC | Up to 100% on qualified files, capped at 75% of ARV |
| Close | 7–10 business days |
| Term | 6–12 months on flips; 12–24 months on bridge |
Worked example: east-side duplex BRRRR
Acquisition: $88,000 side-by-side — one unit occupied at $725/mo, shared panel, roof end of life.
Rehab: $52,000 — roof, dual panels, kitchens/baths both sides, exterior paint.
All-in: $140,000
Hard money: 89% LTC · 8-day close · 10.75% IO
Stabilized rent: $1,350 + $1,275 = $2,625/mo gross
Appraisal: $198,000
DSCR refi: 72% LTV → ~$142,560 permanent debt — returns equity for second acquisition
Title work cleared water account and delinquent tax before wire — non-negotiable on Wayne County files.
Worked example: interior SFR flip
Acquisition: $72,000 — estate sale, 12-day close window
Rehab: $48,000 — HVAC, kitchen, bath, windows
All-in: $120,000
Sale: $178,000 at 5-month mark — 8% selling costs, ~$8,200 carry
Net spread: ~$22,000 — percentage ROI strong on recycled capital
Wayne County diligence checklist
- Quiet title — tax sale, heir, or corporation chain
- Water shutoff / DWSD — account balance before LOI
- Occupancy — certificate of compliance path for rental exit
- Block vacancy — walk both directions at dusk
- Insurance — Detroit proper vs. suburban quote delta
- Comp corridor — Indian Village ≠ east-side interior ≠ Corktown
Scope surprises on pre-1940 Detroit houses
With more than a third of Detroit’s homes built before 1940, older systems are the norm, not the exception. Walk every file with these in mind:
- Sewer lateral. Clay and cast-iron lines crack and fill with roots. Camera the line before you set the budget.
- Wiring. Knob-and-tube or undersized service often means a full rewire, not a panel swap.
- Lead paint. Pre-1978 homes need lead-safe work practices, and BSEED investigates properties tied to child lead-poisoning cases. Hire a certified renovator and keep the paperwork for the rental inspection.
- Plaster and framing. Water damage behind plaster can hide rotten joists. Budget a contingency of at least 10–15% on houses that sat vacant.
- Scrapped mechanicals. Vacant houses often lose copper, furnaces, and water heaters. Price a full replacement unless you saw working systems.
Your contractor’s bid should name each of these. A bid that skips them is not cheaper — it is incomplete.
Corktown, Midtown, and premium pockets
Corktown / Midtown support higher finish and longer hold — overlap with luxury fix and flip when all-in exceeds $750K.
| Corridor | Deep-dive |
|---|---|
| Corktown / Midtown | Premium row and infill |
| Indian Village / Boston-Edison | Historic O-O flips |
| East side interior | Duplex BRRRR stack |
Full ranking: Best Detroit neighborhoods for flipping 2026
Auction and tax-sale timing
Wayne County auction wins require proof of funds in 7–10 days — conventional lenders rarely meet that window. Hard money underwrites as-is value + exit, not borrower W-2. Budget quiet title and register of deeds review before earnest money on tax-sale deeds; redemption periods affect resale timing on certain acquisitions.
Operators who stack three to five sub-$200K ARV exits per year recycle the same hard money relationship — each file still needs independent comp discipline. Do not assume Detroit-wide ARV; assume street-by-street ARV.
Neighborhood deep-dives (2026)
Every corridor in the Detroit flip ranking includes worked examples, draw schedules, and pre-qual checklists:
- East side interior — duplex BRRRR stack
- Indian Village / Boston-Edison — historic O-O flips
- Corktown / Midtown — premium row and spec
Winter rehab and insurance
Detroit winter slows exterior work November–March — build heat and security into carry. Landlord insurance on sub-$200K dwellings often runs $900–$1,400/yr; verify quote on each parcel before LOI. Vacant-property policies during rehab differ from stabilized landlord policies — bind the correct rider before draw one releases.
Compare Midwest depth markets
| Detroit | Indianapolis | Chicago | |
|---|---|---|---|
| Duplex buy | $75K–$130K | $118K–$145K | $280K–$420K |
| Primary risk | Title + block | Marion County basis | Permits + RLTO |
| Flip guide | Published | Published | Published |
Analyzing a Wayne County acquisition or duplex reposition? Pre-qualify for hard money or call (833) 264-7776 for proof of funds before your next auction or estate sale.
Michigan property tax: why the seller’s bill lies
Two Michigan rules make a Detroit seller’s tax bill a poor guide to your carry.
Uncapping on sale. Michigan limits yearly growth in a parcel’s taxable value to the lesser of 5% or inflation. When the property sells, that limit resets. Under MCL 211.27a(3), taxable value for the year after a transfer becomes the full state equalized value. A long-held house with a low taxable value can see a large jump the year after you buy it.
Losing the homestead exemption. A principal residence exemption frees an owner’s home from local school operating millage, up to 18 mills (Michigan Department of Treasury). An investor-owned rental does not qualify. Your bill can rise from both uncapping and the lost exemption at once.
What to do: ask the City of Detroit assessor for the parcel’s state equalized value. Estimate next year’s bill at full non-homestead millage on that value. Use that number in both your hard money carry and your DSCR refinance.
Detroit rental compliance before you refinance
A Detroit BRRRR is not finished when the rehab is. The city’s Buildings, Safety Engineering and Environmental Department (BSEED) sets the rules (City of Detroit rental property page):
- Rental registration. Any dwelling that is not an owner-occupied single-family home counts as rental property, including 1- and 2-family homes. Owners must register with BSEED.
- Certificate of Compliance. Residential rentals need one. It means the property passed inspection under the city’s property maintenance code. It stays valid for three years.
- What it takes. A current inspection no older than one year, all listed repairs completed, a passed re-inspection, and all inspection fees paid.
- Rent escrow. The city notes that tenants in non-compliant properties can pay rent into escrow. A rental without a certificate can lose its cash flow.
Build the inspection into your rehab schedule, not after it. Schedule the city inspection once the rough work is done, and leave room for a re-inspection before your first tenant moves in. A DSCR lender will want to see a signed lease, and a compliant property protects that lease.
Detroit draw and carry discipline
Tie draw releases to finished milestones — roof, mechanicals, kitchens and baths, final — not to calendar dates. Winter and inspection delays push exterior work past your interest reserve when draws run on a schedule.
Illustration: on the east-side duplex above, the hard money balance is about $124,600 (89% of $140,000). At 10.75% interest-only, each month costs about $1,116. Three extra months for a failed inspection or a slow lease-up add about $3,350. That is small next to the equity created, but it adds up fast if a file stalls. Hold three to four months of interest in reserve beyond the rehab plan.
Detroit operators who stack several files a year also watch one more number: Wayne County inventory grew about 3.7% in a year. More listings mean resale buyers have options. Price flips to sell, and keep the rental exit ready.
Rates, terms and conditions offered only to qualified borrowers and are subject to change without notice. All loans are subject to full underwriting. Jaken Finance Group only finances non-owner occupied investment properties.