Charleston's older neighborhoods are full of big early-1900s houses that were split into apartments generations ago. For investors, those buildings can produce strong rent relative to price, as long as the loan size and the legal unit count line up.
In short: LendingStreet finances duplexes, triplexes and fourplexes in Charleston, West Virginia, with DSCR loans that qualify on the combined rent of all units, with no W-2s or tax returns required. Loans start at $150,000 with no stated maximum, purchases go up to 80% LTV, cash-out refinances up to 75% LTV, the standard minimum DSCR is 1.0x and the minimum credit score is 620. In this market, fourplexes and larger triplexes are the most natural fit, because many duplexes sell for less than the loan minimum.
The East End, close to the Capitol and the University of Charleston, has large Victorian and early 20th-century homes, many converted to two to four apartments. The West Side, including the Elk City historic district, has similar older houses and some small brick apartment buildings at lower prices. Kanawha City and South Hills have mid-century duplexes and a few fourplexes, and South Charleston and St. Albans add more affordable side-by-side duplexes.
Purpose-built small buildings from the 1950s through the 1970s tend to have simpler layouts and separate utilities. Conversions have more character, more deferred maintenance and more questions about legal unit counts.
Before counting rent from every unit, confirm that the building's zoning and certificates allow its current number of units. The City of Charleston's zoning ordinance governs unit counts, and East End properties may also fall within a historic district with design review for exterior work. An appraiser who cannot confirm a unit is legal may not count its rent. South Charleston, Dunbar and St. Albans have their own zoning offices.
This example is illustrative and not a quote. An investor buys a converted East End fourplex for $260,000. Each unit rents for $775, so combined rent is $3,100. With 20% down, the loan is $208,000.
Estimated principal and interest is about $1,419. Taxes at the Class IV rate are about $230 and insurance about $190, so the total payment is about $1,839. The DSCR is about 1.69x. A $165,000 duplex at 75% LTV would need a $123,750 loan, below the $150,000 minimum, which is why fourplexes and blanket loans are common here.
| Line | Amount |
|---|---|
| Purchase price | $260,000 |
| Loan at 80% LTV | $208,000 |
| Combined rent, four units | $3,100 |
| Estimated principal and interest | $1,419 |
| Class IV taxes | $230 |
| Insurance | $190 |
| Total payment | $1,839 |
| DSCR | About 1.69x |
West Virginia assesses property at 60% of appraised value. If the seller lived in one unit, part or all of the building may have been taxed at the lower Class II rate. As a rental inside city limits, it becomes Class IV, where levy rates are twice the Class II rate. Ask the Kanawha County Assessor how the parcel is classified, and budget on the investor rate.
Taxes in West Virginia are often paid in two installments, and the timing of the reclassification can lag the sale. That can make the first year's bill look lower than it will be in year two. Budget on the Class IV rate from the start so a later increase does not catch you off guard, and keep a reserve for the difference.
Many East End and West Side buildings are close to a century old. Expect questions about wiring, plumbing, heating and lead paint, and check whether units have separate meters. If the owner pays heat or water for all four units, that cost comes out of your cash flow even though the ratio is based on rent, taxes, insurance and the loan payment.
Some neighborhoods near the Kanawha and Elk rivers fall in flood zones. Get a flood determination before you make an offer, and include any required premium in the ratio.
Demand for small units comes from state government workers, CAMC and Thomas Health staff, University of Charleston students and employees, and workers at the region's chemical and energy employers. Rents are modest compared with larger metros, but so are prices, so ratios on well-run buildings are often comfortable. Keep leases current and signed, since underwriters will use them or the appraiser's market rent.
Units close to the Capitol and the hospitals tend to lease fastest, and many tenants value walkability to downtown and Kanawha Boulevard. Off-street parking is limited in the East End, so a building with a lot or driveway has an edge. In South Charleston and St. Albans, garages and yards matter more to tenants than walkability.
Investors who buy several duplexes that are each too small for an individual loan can combine five or more under a blanket portfolio loan. Those who move up to five to eight units stay in residential programs, although max LTV can be lower depending on the program. Our Charleston, WV 5-8 unit and blanket pages cover both paths.
Our investor loans are business-purpose loans on non-owner-occupied property, so none of the units can be your home. Send the address, price, rent by unit, taxes and insurance, and LendingStreet will run the ratio and send options. Call (877) 298-1001 or use the form below. The West Virginia 2-4 unit page covers the rest of the state.
Yes, if the loan amount is at least $150,000. Many duplexes here sell for less, so fourplexes or blanket loans are often a better fit.
Only if all four units are legal under zoning. Confirm with the city before you count every unit's rent.
A rental inside city limits is Class IV, with levy rates twice the Class II owner-occupied rate.
Purchases go up to 80% LTV and cash-out up to 75% LTV, as long as combined rent covers the payment at the program minimum.
No. DSCR loans qualify on rent. You need a 620 or higher credit score and reserves.
Yes. Cash-out goes up to 75% LTV, and seasoning varies by program.
Parts of it are, and exterior changes there may need design review. Check with the city before planning a renovation.
With five or more properties, a blanket portfolio loan can combine them under one loan.
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