2-4 unit rental loans
A small multifamily building gives you several rent checks on one property. If one unit is empty, the others keep paying, which is why plenty of investors like a duplex or fourplex as an early rental.
Who this is good for
- Investors who want more than one rent stream from a single purchase
- Buyers in areas where small multifamily is common
- Investors refinancing a 2-4 unit property they already own and rent out
Investment property only
This is a business-purpose loan for non-owner-occupied investment property. You cannot live in the property. GoDSCR is a mortgage broker: we arrange and shop financing from wholesale lenders, and every loan is subject to the lender's underwriting and approval.
How it works
Add up every unit
The DSCR uses the combined rent from all units compared to the one total payment. Use our calculator with the total rent.
Look at the leases
Existing tenants come with existing leases. Lenders usually review them along with the appraiser’s market rent estimate for each unit.
We shop programs
Not every DSCR program treats 2-4 unit properties the same. We find the wholesale lenders whose guidelines fit your building.
Close and manage
More units means more tenants, more maintenance and more bookkeeping. Line up your property management plan before closing.
What to expect
- Leases and rent rolls for occupied units
- An appraisal that estimates market rent for each unit
- Reserve requirements that may be higher than for a single-family rental
- A business-purpose certification confirming you will not live in any of the units
Watch-outs
- Living in one unit and renting the others is owner-occupancy, which these business-purpose loans do not cover.
- Older small multifamily buildings can hide big repair items. Get a thorough inspection.
- Check local rent rules before assuming you can raise rents.
Questions about 2-4 unit rental loans
Can I live in one unit of a duplex with a DSCR loan?
No. DSCR loans we arrange are strictly for non-owner-occupied investment property. If you plan to live in any unit, we are not the right fit for that loan.
What if some units are vacant?
Lenders often use market rent estimates for vacant units, though some programs are more cautious. We will tell you how each lender handles vacancies.
Are 5+ unit buildings available?
Five or more units usually fall into commercial multifamily lending, which is a different process. GoDSCR focuses on 1-4 unit rentals for early-stage investors.
Other ways we can help
First rental purchase loans
Buy rental #1 (or #2, #3...) using the rent the property can earn to help you qualify.
DSCR cash-out refinance
Tap the equity in a rental you already own and put it toward the next one.
DSCR rate-and-term refinance
Swap your current rental loan for one with a better payment, term or structure, with no cash out.
Short-term rental loans
Financing for vacation and nightly rentals, where income is evaluated differently than a 12-month lease.
Ready to line up rental #1 (or #2)?
Tell us about the property. We will shop wholesale lenders for a business-purpose DSCR loan and walk you through every step in plain English.