Much of Daytona's small multifamily is mid-century concrete block: one-story duplexes and two-story fourplexes on the beachside streets between the Halifax River and the ocean, built when the area was a winter resort. Their rents are solid. Their insurance bills decide whether they cash flow.
In short: LendingStreet finances Daytona Beach 2-4 unit rentals with DSCR loans that qualify on the combined rent of every unit, with no tax returns, a 620 minimum credit score and LLC borrowers welcome. Loans start at $150,000, purchases go up to 80% LTV and cash-out to 75% LTV, and the standard minimum DSCR is 1.0x. In Daytona the lines to price before you offer are wind and flood insurance and the non-homestead tax bill at your purchase price.
The beachside, especially the blocks around Seabreeze Boulevard, Main Street and the side streets off A1A, has the densest supply of older duplexes, triplexes and fourplexes. Many are concrete block with terrazzo floors and flat or low-slope roofs. Holly Hill and the area west of Ridgewood Avenue have one-story duplexes rented to long-term local tenants. Midtown and downtown near Beach Street have a mix of older frame duplexes and small apartment houses.
Newer duplexes are less common but appear in Port Orange, Deltona and DeLand, where lower insurance costs can make the numbers easier.
Check that the City of Daytona Beach or the relevant city zoning allows the existing number of units on the parcel and that the Volusia County property appraiser's record shows the same count. Older beachside buildings sometimes have units added over time without permits, and those units will not count.
Most 2-4 unit financing here is underwritten on long-term leases. Short stays are limited in many residential zones under local rules that predate Florida's 2011 vacation rental law, so do not count on nightly income unless the parcel is zoned for it.
Hurricane Ian flooded inland neighborhoods in 2022, and Hurricane Nicole damaged beachside property later that year. Insurers price older coastal buildings carefully. Roof age, roof shape, wind mitigation features and the flood zone all affect the premium, and a flat-roof fourplex near the ocean can carry a large wind premium plus separate flood coverage.
Get a wind mitigation inspection and the roof, electrical, plumbing and HVAC condition report insurers ask for on older homes early. Updated roofs, impact windows or shutters can reduce the premium. If the building is in a mapped flood zone, flood insurance is generally required and counts in the payment.
This example is illustrative and not a quote. A 1960s concrete-block fourplex a few blocks from the beach sells for $640,000, with four units at $1,450. At 75% LTV the loan is $480,000, with estimated principal and interest of about $3,274. Taxes at the purchase price are about $800 and wind plus flood insurance about $700, for a total of $4,774 and a DSCR of about 1.21x.
A one-story Holly Hill duplex sells for $330,000, with two units at $1,400. The loan at 75% LTV is $247,500, principal and interest about $1,688, taxes about $450 and insurance about $330. The total payment is about $2,468 and the DSCR is about 1.13x.
| Item | Beachside fourplex | Holly Hill duplex |
|---|---|---|
| Price | $640,000 | $330,000 |
| Loan at 75% LTV | $480,000 | $247,500 |
| Combined rent | $5,800 | $2,800 |
| Estimated principal and interest | $3,274 | $1,688 |
| Taxes | $800 | $450 |
| Insurance | $700 | $330 |
| DSCR | About 1.21x | About 1.13x |
Investor-owned property in Florida does not get homestead exemptions, so the assessment resets to market value when you buy. After that, increases on non-school taxes are capped at 10% a year for non-homestead property. Budget taxes on your purchase price, not the seller's bill, especially if the seller owned for many years.
Florida also charges documentary stamp tax on the note and an intangible tax on new mortgages at closing.
Tenants include hospital workers at AdventHealth and Halifax Health, Embry-Riddle and Daytona State College students and staff, tourism and service workers, and retirees who prefer renting near the water. Beachside units with parking, updated kitchens and in-unit laundry lease fastest. Florida law sets statewide landlord-tenant rules, and local governments generally cannot add their own, which keeps lease terms consistent across Volusia County.
Many beachside buildings come to market tired: original windows, older roofs, dated kitchens and units below market rent. Buying with cash or a bridge loan, renovating and then refinancing into a DSCR loan is a common Daytona path. The refinance then uses the higher rents and, often, a lower insurance premium thanks to the new roof and windows.
Pull permits for roofs, windows and structural repairs. Insurers and appraisers both look for them, and unpermitted work on coastal buildings can create problems at refinance. Keep invoices and photos, since documented wind mitigation work is what moves the premium.
Seasoning on a cash-out refinance varies by program. If you plan to pull capital back out soon after the work is done, ask about seasoning before you buy so the timeline fits your plan.
Some beachside and downtown apartment houses have five to eight units. Those still qualify as residential on our programs, though max LTV can be lower and varies by program. See our Daytona Beach 5-8 unit page. Buildings with nine or more units are commercial.
Send the address, unit count, rents, insurance quote with wind mitigation results, flood zone and price through the form below, or call (877) 298-1001.
Yes. The loan qualifies on combined rent of all four units, with a 1.0x standard minimum DSCR and no tax returns.
A lot. Wind and flood premiums on older coastal buildings can be the biggest expense after the mortgage, so get quotes before you offer.
Only if the parcel is zoned for short stays and other rules allow it. Most 2-4 unit loans here use long-term leases.
Usually. The assessment resets to market value on sale. After that, non-homestead increases on non-school taxes are capped at 10% a year.
Often. Documented roof straps, impact windows or shutters and a newer roof can reduce the premium and improve the DSCR.
Yes. Cash-out goes up to 75% LTV, and seasoning varies by program.
If the building is in a mapped flood zone, flood insurance is generally required. Even outside mapped zones, Hurricane Ian showed that inland flooding happens, so many investors buy it anyway.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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