DDetroit Off-MarketProperties™

Detroit Rental Cash Flow, NOI & Net ROI

NOI, operating expenses and how annual net ROI is calculated.

Cash flow is what is left after every real cost of owning a rental — not the gap between rent and price. In Detroit, property taxes, insurance and maintenance on older homes are where projections most often go wrong.

Our listings use one consistent definition of projected annual net ROI, and we screen against an aspirational 8%–12% target. A target is not a guarantee.

Read: Understanding Detroit investment returns →

What this topic covers

  • Net operating income (NOI)
  • Operating expenses checklist
  • Cap rate vs cash-on-cash
  • The 8%–12% target, explained

Guides

Frequently asked questions

What is a good net ROI in Detroit?
It depends on your risk tolerance, financing and the property. We use 8%–12% annual net ROI as a screening target, not a promise or historical average.
Is cap rate the same as net ROI?
Close for an all-cash purchase, but cap rate uses total property cost while cash-on-cash and financed returns depend on your loan terms.
Why do Detroit property taxes matter so much?
They can be a large share of expenses and may change after a sale. Always check the actual bill.

General information only — not legal, tax, financial or investment advice. Projections and targets are not guarantees.