A lot of Davenport's small multifamily stock was never built as multifamily. It is big late-1800s and early-1900s houses on the bluffs above downtown that were split into two, three or four apartments decades ago.
In short: LendingStreet finances Davenport 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, purchases go up to 80% LTV and cash-out up to 75% LTV, and the standard minimum DSCR is 1.0x. In Davenport the key items to verify are the legal unit count, the city rental inspection status and the post-sale tax bill.
Walk the Hamburg Historic District, the Gold Coast, the streets around Vander Veer Park or the blocks near Palmer College and you will see the pattern: tall Victorian and Foursquare houses with separate entries, exterior stairs and two or three electric meters. Most were converted rather than purpose-built, so layouts, ceiling heights and unit sizes vary widely.
Purpose-built side-by-side duplexes are more common in north and northwest Davenport and in Bettendorf, often from the 1970s onward. They tend to rent for less per unit than a renovated Victorian flat, but they are simpler to maintain and insure.
Because so many buildings were split up informally, the first question is whether the city recognizes every unit. Check the zoning district, the assessor's record and the rental registration to make sure they agree on the number of units. A building marketed as a triplex that is legally a duplex will be valued and underwritten as a duplex.
Davenport registers and inspects rental property. Ask the seller for current rental permits and recent inspection results, and plan for any open items before closing. Code repairs on older converted houses, such as egress windows, stairs and smoke detectors, are common findings.
The loan qualifies on the combined market or lease rent of every unit. In a converted house, a large first-floor unit and a small attic unit can rent very differently, so the appraiser's rent schedule matters as much as the purchase price.
Taxes are the other big line. Scott County assessors revalue in odd-numbered years, and Iowa's residential rollback sets how much of the assessed value is taxed. Owner-occupant credits come off when an investor buys, so use the full bill without credits. Landlord-paid heat in older buildings with a single boiler also eats into cash flow, even though utilities are not part of the DSCR calculation itself.
This example is illustrative and not a quote. An investor buys a converted up-down duplex near Vander Veer Park for $238,000. The units lease for $1,075 and $1,025, or $2,100 combined.
At 75% LTV the loan is $178,500, with estimated principal and interest of about $1,218 a month on a 30-year term. Taxes are budgeted at $370 and insurance at $140, for a total payment of about $1,728. The DSCR is about 1.22x.
| Item | Vander Veer duplex | Northwest fourplex |
|---|---|---|
| Purchase price | $238,000 | $335,000 |
| Loan at 75% LTV | $178,500 | $251,250 |
| Combined rent | $2,100 | $3,100 |
| Estimated principal and interest | $1,218 | $1,714 |
| Taxes and insurance | $510 | $730 |
| Total payment | $1,728 | $2,444 |
| DSCR | About 1.22x | About 1.27x |
The table also shows a 1970s fourplex in northwest Davenport bought for $335,000, with four units at $775 each. The loan at 75% LTV is $251,250 and the total payment is about $2,444, for a DSCR near 1.27x. Lower rent per unit, but four of them, and fewer surprises behind the walls than a converted Victorian.
Some of the best-priced small multifamily sits close to the river or along Duck Creek, where homes can fall in mapped flood zones. Flood insurance is generally required there and counts in the payment.
Insurers also look closely at knob-and-tube wiring, old boilers and roof age on older converted houses. Get the quote during your inspection period so the premium is real when the ratio is calculated.
Duplexes and triplexes near Palmer College of Chiropractic and St. Ambrose University often lease to students. Demand is reliable, but leases turn over annually and wear is heavier. A DSCR loan can use the current leases or market rent; make sure leases are signed with the units, not by the bedroom, if you want the cleanest file.
Some of the larger houses on the bluff and a handful of small apartment buildings downtown have five to eight units. Those are still residential under our programs, though max LTV can be lower and varies by program. See our Davenport 5-8 unit page for that size. Buildings with nine or more units are commercial.
To start a 2-4 unit quote, send the address, unit mix, rents and tax bill through the form below or call (877) 298-1001.
Tenants in Davenport duplexes and fourplexes are a broad mix: hospital staff at the Genesis and UnityPoint campuses, workers at the Rock Island Arsenal, the Arconic plant in Riverdale and the Deere operations across the river, and younger renters who want walkable blocks near downtown and the Village of East Davenport. That spread of employers helps keep vacancy manageable across economic cycles.
Units with in-unit laundry, off-street parking and separate heat tend to lease faster and hold tenants longer. When you underwrite an older converted house, price in the cost of adding what the building lacks, and expect the appraiser's rent schedule to reflect what the units offer today, not after future upgrades.
If a building needs real work before it can be rented at market, a bridge or fix and flip loan can carry the renovation, with a DSCR refinance once the units are leased.
Yes. The loan qualifies on the combined rent of both units, with a 1.0x standard minimum DSCR, a 620 minimum credit score and no tax returns.
The property will generally be valued and underwritten on the legal unit count. Confirm zoning, the assessor record and rental registration before you buy.
Davenport registers and inspects rental property. Have current permits or a plan to clear open items, since inspection status can affect the file and your ability to lease units.
Purchases go up to 80% LTV, subject to the rent covering the payment. Loans start at $150,000 with no stated maximum.
Not always. Appraisers compare it with similar conversions where possible, and unusual layouts or small units can affect value and rent.
Yes. Cash-out goes up to 75% LTV, and seasoning varies by program.
The assessed value is set the same way, but owner-occupant credits do not apply to investors. Budget on the full bill without credits, and expect the number to move when Scott County revalues in odd-numbered years.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so every unit must be rented to tenants.
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