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 proper carries the lowest big-city basis in the country — a median sale price near $100,000, up ~4.1% year over year, with homes averaging ~54 days on market (Redfin, 2026). At that basis, carry cost and clean title — not price — decide the deal, and block-level comps swing value far more than any citywide number, which is exactly why the $165K-vs-$95K spread two blocks apart is the whole game here.
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 90% on qualified files |
| Close | 7–14 business days |
| Term | 12–18 months |
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
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.
Detroit — carry and draw discipline (2026)
Draw releases on Detroit should tie to inspection milestones — calendar-based schedules stall when permits or weather push exterior work past your IO reserve.
Reserve two to four months IO beyond rehab on Detroit acquisitions. Include scope contingency before demo.
Replay the worked structure on this page (Acquisition: $88,000 side-by-side — one unit occupied at $725/mo, shared panel, roof e) with your own sold comps and insurance quote before LOI.
| Gate | This file |
|---|---|
| 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 |
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.