Small multifamily in Columbia is concentrated in a few places: around the University of South Carolina, in the older neighborhoods east and south of downtown, and along corridors where fourplexes were built in the 1970s and 1980s. Each pocket rents to a different tenant.
In short: LendingStreet finances Columbia 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. On a Columbia 2-4 unit building, the 6% assessment ratio on rental property is usually the number that sets the leverage.
Around USC, investors find duplexes and converted houses in Olympia, Granby, the edges of Shandon and Rosewood, and the streets between the campus and the Vista. Further out, Earlewood, Cottontown and Elmwood Park have older duplexes near downtown, and the Two Notch and Decker Boulevard corridors carry brick fourplexes from the 1970s and 1980s.
Across the river, West Columbia and Cayce have a scattering of duplexes at lower prices, and the area around Fort Jackson has fourplexes and duplexes that rent to military families and civilian staff.
Prices for 2-4 unit buildings in Columbia are moderate by Southeast standards, which means many duplexes sit close to the $150,000 loan minimum. If a single building is too small, investors sometimes buy two duplexes at once or wait to combine several into a blanket loan. A fourplex in decent condition is usually comfortably above the minimum.
| Area | Typical building | Main renters |
|---|---|---|
| Olympia, Granby, near USC | Duplexes, converted houses | Students, young professionals |
| Rosewood and Shandon edges | Older duplexes | Hospital staff, graduate students |
| Earlewood, Cottontown, Elmwood Park | Historic duplexes | Downtown workers |
| Two Notch and Decker corridors | 1970s-80s fourplexes | Working households, military |
| West Columbia and Cayce | Small duplexes | Commuters to downtown |
Columbia's zoning code determines how many units a parcel may hold, and some older converted houses near campus are legal nonconforming. That is usually financeable if the appraisal supports the unit count, but bring permit history if you have it. The city has also had rules limiting how many unrelated people may live together in some residential districts, which matters for student rentals leased by the bedroom.
The City of Columbia has required permits for non-owner-occupied residential rentals, with inspection authority. Confirm current registration requirements for each building before closing.
Parking is a practical zoning issue near campus. Some converted buildings were approved with fewer spaces than tenants now expect, and street parking on game days is scarce. Neither affects the loan directly, but both affect rent and turnover, and an appraiser will notice if comparable buildings rent higher because they have off-street parking.
South Carolina taxes rental property at a 6% assessment ratio, half again the 4% assessment ratio owner-occupants pay, and rentals do not get the school operating millage exemption. On a fourplex, the tax bill can be the second-largest monthly cost after principal and interest. A sale also resets the taxable value, so the seller's bill may understate what you will pay.
Lexington County properties often carry different millage than Richland County ones, so compare the same building on both sides of the river before deciding where to buy.
Counties in South Carolina reassess on a five-year cycle, and the state caps how much an existing property's taxable value can rise at each reassessment unless it sells. Long-held buildings can therefore carry artificially low bills that disappear the moment you buy. Ask the county assessor for an estimate at your contract price.
This example is illustrative and not a quote. An investor buys a brick fourplex for $420,000 with 25% down. The four two-bedroom units rent for $950 each, $3,800 a month combined.
The loan is $315,000. Estimated principal and interest is $2,203, taxes at the 6% assessment ratio are budgeted at $770 a month and insurance at $240. The total payment is $3,213 and DSCR is about 1.18x.
| Item | Amount |
|---|---|
| Purchase price | $420,000 |
| Loan (75% LTV) | $315,000 |
| Combined rent, 4 units | $3,800 |
| Estimated principal and interest | $2,203 |
| Taxes | $770 |
| Insurance | $240 |
| Total payment | $3,213 |
| DSCR | About 1.18x |
Student-area duplexes near USC often rent by the bedroom on August-to-July leases. Total rent can be strong, but turnover is concentrated in one month, and parents frequently sign for the lease personally. Lenders add the bedroom leases together for the property's rent. Fourplexes in the corridors rent on standard 12-month leases with turnover spread through the year.
Either can work for DSCR. What matters is that the leases are at market rent and that the appraiser's rent schedule supports them.
A practical note on by-the-bedroom leases: if a building is leased to four students on four separate leases, the appraiser will usually compare the total with similar buildings rented as whole units. If the per-bedroom total is far above whole-unit market rent, the lender may use the lower figure.
South Carolina's deed recording fee, about $3.70 per $1,000 of price, is customarily paid by the seller, but confirm in your contract. Buyers pay title, lender and recording costs.
When you are ready for 5-8 units, those buildings are still residential for our DSCR programs, with max LTV that can be lower and terms that vary by program. The Columbia 5-8 unit page covers them.
Many Columbia investors grow by refinancing a stabilized duplex or fourplex for cash out after seasoning and using the proceeds as the down payment on the next building. Because each loan qualifies on the property's rent, the path does not depend on your W-2 income or tax returns.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, price, unit mix, current leases and the tax bill. We will run the ratio at a few leverage levels with taxes at the investor rate. The South Carolina 2-4 unit page covers the rest of the state; call (877) 298-1001 or use the form below.
Yes. The loan qualifies on combined rent, including by-the-bedroom student leases added together, with no personal income documentation.
It can make the tax bill much higher than an owner-occupant pays on the same building. Budget on the rental figure and expect leverage to adjust if needed.
Often yes, if the units are legal or legal nonconforming and the appraisal supports three units.
Up to 80% on many programs, as long as rent covers the payment at the program minimum.
Non-owner-occupied rentals inside Columbia city limits have been subject to a permit requirement. Confirm with the city for each building.
Yes, up to 75% LTV, with seasoning rules that vary by program.
Yes. A lease at market rent counts the same regardless of how the tenant pays.
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