Colorado's small multifamily runs from century-old Denver duplexes to newer fourplexes near military bases in Colorado Springs. Prices along the Front Range are high, so investors look closely at which submarkets still let the rent cover the payment.
In short: Yes. LendingStreet finances duplexes, triplexes and fourplexes across Colorado with DSCR loans that qualify on the combined rent of all units, with no W-2s or tax returns. Loans start at $150,000 with no stated maximum, purchases go up to 80% LTV and cash-out up to 75% LTV, and the standard minimum DSCR is 1.0x with a 620 minimum credit score. The Colorado items that most often move a 2-4 unit file are hail-driven insurance costs, local rental licensing, and Denver prices that can push the ratio below 1.0x.
Denver's older duplexes and small apartment buildings are concentrated in Capitol Hill, Baker, the Highlands, Congress Park and Park Hill, along with many newer side-by-side duplexes built on scraped lots. Aurora, Lakewood and Englewood offer lower prices per unit.
Colorado Springs has a large base of military renters tied to Fort Carson, Peterson Space Force Base, Schriever and the Air Force Academy, and its older west side and central neighborhoods have duplexes and fourplexes at prices well below Denver. Fort Collins and Greeley have student and workforce rentals, and Pueblo offers some of the lowest prices on the Front Range.
| Area | Typical 2-4 unit stock | What to check |
|---|---|---|
| Denver | Older duplexes and walk-ups; newer side-by-sides | Rental license; prices vs rents |
| Colorado Springs | Duplexes and fourplexes near bases | Military moves; hail-exposed roofs |
| Fort Collins and Greeley | Student and workforce rentals | Local occupancy and licensing rules |
| Pueblo | Lower-priced older buildings | Condition and deferred maintenance |
The debt service coverage ratio compares the building's gross monthly rent with its monthly housing payment. On a duplex, triplex or fourplex, that rent is the total from all units, and the payment includes principal, interest, taxes, insurance and HOA dues where they apply.
Leases on occupied units are compared with the appraiser's rent survey, and a vacant unit is usually counted at market rent. Because the loan qualifies on the property, there are no W-2s or tax returns, and borrowing in an LLC is standard.
Run the numbers with figures you can verify. For a Colorado purchase, that means taxes estimated for an investor owner, a written insurance quote covering every unit, and rents that match the leases or the local market, so the ratio holds up in underwriting.
Colorado reassesses property every two years, and the residential assessment ratio is set by state law. The legislature has changed it several times in recent years after sharp jumps in value, so check the current figure and the county's latest notice of value before relying on an old bill. Mill levies vary widely by county, city, school district and special districts.
Colorado's state documentary fee on transfers is very small, so closing costs are driven mostly by title, recording and any local taxes. Some mountain towns charge real estate transfer taxes, but most Front Range cities do not; confirm with the title company.
This example is illustrative and not a quote. An investor buys a triplex in Colorado Springs for $585,000. Rent is $1,450 per unit, or $4,350 a month across all three units. Taxes are budgeted from the county's current notice of value, and insurance reflects a hail deductible on a 15-year-old roof.
At 80% LTV, the loan is $468,000, estimated principal and interest is about $3,114, taxes are $225 a month and insurance is $225, for a total payment of about $3,564 and a DSCR of about 1.22x. The triplex clears 1.0x. A similar building in central Denver would usually cost far more for similar rent, which is why many investors look south.
| Item | Amount |
|---|---|
| Purchase price | $585,000 |
| Combined monthly rent | $4,350 |
| Loan amount (80% LTV) | $468,000 |
| Estimated principal and interest | $3,114 |
| Property taxes (monthly) | $225 |
| Insurance (monthly) | $225 |
| Total monthly payment | $3,564 |
| DSCR | About 1.22x |
The Front Range is one of the most hail-prone areas in the country, and insurers have raised premiums and deductibles, often using a percentage deductible for wind and hail. A fourplex with an older asphalt roof may face higher costs or limited coverage. Wildfire risk is also real in foothill and wildland-urban areas, as the 2021 Marshall Fire showed. Get a full quote early and ask about roof age and material.
Denver requires a residential rental license for most long-term rentals, which involves an inspection, and other cities including Aurora and Boulder run their own licensing programs. Colorado has expanded tenant protections in recent years, including rules on fees and notice, and a 2024 law requires just cause for many evictions. Statewide law still bars local rent control.
Build licensing time into your closing plan if a unit will be re-leased right after purchase.
A duplex, triplex and fourplex all qualify the same way, on combined rent, with up to 80% LTV on purchases and up to 75% on cash-out. The practical difference is risk: a duplex with one vacant unit loses half its income, while a fourplex loses a quarter.
If you are looking at a five- to eight-unit building, it is still a residential loan, but expect closer review and possibly lower leverage, which varies by program. Buildings of nine units or more move to commercial financing.
Gather these before you apply.
LendingStreet finances business-purpose DSCR loans on 2-4 unit rentals across Colorado. Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, price, rents and target leverage, and we will run the ratio on realistic taxes and insurance and come back with options. You can call (877) 298-1001 or use the form below.
Yes, Denver requires a residential rental license for most long-term rentals, and it includes an inspection. Other Colorado cities have their own programs.
Through insurance. Higher premiums and percentage deductibles raise the monthly payment, which lowers the ratio. A newer, impact-rated roof can help.
Possibly. Sub-1.0 DSCR programs exist, or a larger down payment can bring the ratio up. We can show both options.
Often, because prices are lower relative to rent. Each property is different, so we run the ratio on actual taxes, insurance and rents.
The vacant unit is usually counted at the appraiser's market rent, though some programs adjust for vacancy. A signed lease on that unit before closing can make the file stronger.
No. Our investor loans are business-purpose loans on non-owner-occupied property, and every unit must be a rental.
Yes. Cash-out goes up to 75% LTV, and the rent has to cover the new, larger payment at the program minimum. Seasoning varies by program.
No. The ratio is built from the property's rent and payment. Credit of 620 or higher, reserves and entity documents for an LLC are the main borrower items.
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