Detroit Rental Property Portfolio for a UK Portfolio Investor
$380,000 · 30 years · 7.25% fixed. An experienced UK property investor had identified Detroit's recovering property market as offering exceptional gross rental yields on modest purchase prices.
The Client
Buy-to-Let Investors Abroad
The Challenge
An experienced UK property investor had identified Detroit's recovering property market as offering exceptional gross rental yields on modest purchase prices. He planned to purchase four properties through a US LLC and manage them through a Detroit-based property management company.
Our Solution
Doulton arranged a DSCR (Debt Service Coverage Ratio) mortgage through a US non-QM lender - a product specifically designed for foreign investors where the rental income of the property, rather than the borrower's personal income, drives the underwriting. The LLC structure was accepted as borrower.
The Outcome
Four properties acquired. DSCR across the portfolio: 1.42x. Gross rental yield: 14.3% on total purchase price. Property management company in place from day one. Key highlights: DSCR mortgage - rental income drives underwriting; LLC structure accepted as borrower; Gross yield of 14.3% - US non-QM lender programme.