Colorado Springs is mostly a single-family city, which makes its small multifamily buildings scarce and closely watched. Most of them sit in a ring around downtown, built before the suburbs spread north and east.
In short: LendingStreet finances Colorado Springs duplexes, triplexes and fourplexes with DSCR loans that qualify on the combined rent of all units, with no W-2s or tax returns and LLC borrowers allowed. Loans start at $150,000 with no stated maximum, purchases go up to 80% LTV, cash-out goes up to 75% LTV and the standard minimum DSCR is 1.0x. Separate meters, legal unit count and a realistic hail-ready insurance quote matter most here.
Look first at the older neighborhoods close to downtown: the Hillside area, Mill Street, the Westside around Old Colorado City, Ivywild, Patty Jewett and the blocks around Colorado College and the Knob Hill area east of downtown. Many buildings are converted houses or brick duplexes from the mid-century; others are 1970s and 1980s fourplexes along older arterials.
Newer duplexes and townhome-style buildings show up in pockets of the east side and near UCCS on the north side, where students and young staff rent. A converted house needs a careful look at how the units were permitted.
Inventory is thin. Small buildings near downtown change hands less often than houses, and many sell off-market between local landlords. Investors who want several doors often buy one duplex at a time over a few years, which is why a DSCR loan that closes on rent alone, without tax returns, fits this market well.
| Area | Typical building | Renter base |
|---|---|---|
| Westside and Old Colorado City | Converted houses, small brick duplexes | Service workers, downtown commuters |
| Hillside and Mill Street | Older duplexes and triplexes | Downtown workers, students |
| Knob Hill and east of downtown | 1970s-80s fourplexes | Military families, hospital staff |
| Near UCCS | Newer duplexes, townhome units | Students, university staff |
| Southeast near Academy Blvd | Duplexes and fourplexes | Fort Carson and Peterson families |
In 2023 Colorado Springs replaced its zoning code with a new unified development code, often called ReToolCOS, and many zone district names changed. A building used as a triplex for decades may sit in a district that would not allow it today, which can make it legal nonconforming. That is usually financeable, but the appraiser and title work need to support the unit count.
Ask the seller for permits on any conversion and pull the county assessor record to see how many units it lists. If the assessor shows one unit and you are buying three, sort that out before closing.
Colorado's 2024 housing laws pushed larger cities toward allowing accessory dwelling units and more housing near transit, and city rules are still settling. Do not count on adding a unit to a duplex until you have a written answer from the planning department. An accessory unit you build later is a separate project from the purchase loan.
This example is illustrative and not a quote. An investor buys a triplex near Old Colorado City for $585,000 with 25% down. The three units rent for a combined $4,350 a month.
The loan is $438,750. Estimated principal and interest is $3,068, taxes are budgeted at $230 a month and insurance at $265. The total payment is $3,563 and DSCR is about 1.22x.
| Item | Amount |
|---|---|
| Purchase price | $585,000 |
| Loan (75% LTV) | $438,750 |
| Combined rent, 3 units | $4,350 |
| Estimated principal and interest | $3,068 |
| Taxes | $230 |
| Insurance | $265 |
| Total payment | $3,563 |
| DSCR | About 1.22x |
Older Colorado Springs duplexes often share a boiler or a single water meter. If the owner pays heat or water, that cost does not reduce the DSCR calculation on most programs, but it does reduce your actual cash flow, and winter gas bills here can be sizable. Separately metered units are easier to run and easier to sell.
Rent per unit in a small building usually trails a comparable single-family home, but three or four rents on one roof generally produce more total income for the price.
The renter base here is unusually broad for a city this size: soldiers and airmen from Fort Carson, Peterson and Schriever, staff at the Air Force Academy, students at UCCS and Colorado College, and workers at the hospitals and defense contractors. Military tenants move on orders, so turnover can be higher than in a typical market. Budget for a vacancy or two a year in a fourplex, even though the DSCR calculation uses full lease rent.
Colorado taxes residential property, including 2-4 unit buildings, at a residential assessment ratio that the legislature has changed several times recently. El Paso County reappraises every two years in odd-numbered years. Buildings with five or more units have historically been classified differently, which is one reason the 1-4 unit line matters.
When you budget, use the assessor's current actual value and the most recent mill levy for the specific tax area, not the seller's last bill. A building near downtown can sit in a different set of special districts than one on the east side, and those districts change the total.
Once you outgrow fourplexes, 5-8 unit buildings are still residential for our DSCR programs, though max LTV can be lower and terms vary by program. In Colorado Springs these are mostly older walk-up buildings near downtown and along Platte Avenue. The Colorado Springs 5-8 unit page covers them in detail.
A common path is to hold two or three duplexes, refinance them for cash out, and use that equity toward a larger building. Each step qualifies on the property's rent, so your growing portfolio does not have to be justified with personal income.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, price, unit mix and current rents. We will check the ratio at a few loan amounts and tell you what documents the file needs. The Colorado 2-4 unit page covers the rest of the state, and you can call (877) 298-1001 or use the form below.
Yes. The loan qualifies on the combined rent of both units, with no personal income documentation.
It can work if the units were permitted or are legal nonconforming and the appraisal supports the unit count. Bring permits if you have them.
It may have changed the zone district name or what new construction is allowed. Existing legal units usually continue, but confirm with the city.
Up to 80% LTV on a purchase on many programs, subject to the rent covering the payment at 1.0x or better.
On most programs DSCR uses rent against principal, interest, taxes, insurance and HOA, so owner-paid utilities do not enter the ratio, but they do affect cash flow.
Yes, up to 75% LTV, subject to seasoning rules that vary by program.
Rent is rent. A signed lease at market level counts the same whether the tenant uses a housing allowance or not.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.