Denver's 2-4 unit stock ranges from 1920s brick fourplexes in Capitol Hill to brand-new side-by-side duplexes on scraped lots in West Highland. They lease well. At today's prices, the harder part is getting the rent to cover the payment.
In short: LendingStreet finances Denver duplexes, triplexes and fourplexes with DSCR loans that qualify on the combined rent of all units, with no tax returns and LLC borrowers welcome. Loans start at $150,000 with no stated maximum, purchases go up to 80% LTV and cash-out to 75% LTV, and the standard minimum DSCR is 1.0x, with sub-1.0 programs for some files. In Denver, the leverage that clears the ratio is often lower than the maximum, so plan the down payment around rent, not price.
Capitol Hill, Cheesman Park, Congress Park and Uptown have brick walk-up fourplexes and small apartment houses from the 1910s through the 1930s, often with steam or hot-water heat. Baker, Sunnyside, Berkeley and Whittier have older duplexes and Denver Squares converted to two units. In Highland, West Highland, Sloan's Lake and Jefferson Park, many older bungalows have been replaced with modern side-by-side duplexes sold as separate units or held together.
On the southwest and east sides, in Athmar Park, Westwood, Harvey Park and parts of Aurora, mid-century duplexes trade at lower prices and are where cash flow is easiest to find.
| Type | Where | Financing note |
|---|---|---|
| Brick walk-up fourplex | Capitol Hill, Cheesman, Congress Park | Strong rent; usually needs lower leverage |
| Converted Denver Square duplex | Baker, Sunnyside, Whittier | Confirm legal unit count |
| New side-by-side duplex | Highland, Sloan's Lake, Jefferson Park | Often condo-mapped; check ownership structure |
| Mid-century duplex | Athmar Park, Westwood, Aurora | Closest to program maximum leverage |
Denver's zoning code allows two-unit homes in two-unit (TU) districts, row houses in RH districts and larger buildings in multi-unit districts, and the city expanded where accessory dwelling units are allowed. Many older fourplexes in Capitol Hill predate current zoning. Confirm with the city that the existing units are legal and that the assessor's record matches.
New Highland duplexes are often split into two separately owned units. If you are buying both sides, make sure you are buying the whole structure under a structure you can finance as one 2-unit property, or plan for two separate loans.
This example is illustrative and not a quote. A brick fourplex near Cheesman Park sells for $1,250,000, with four units at $1,550. At 75% LTV the loan is $937,500, estimated principal and interest is about $6,395, and taxes and insurance add $733. The payment of about $7,129 gives a DSCR near 0.87x, below 1.0x.
At 60% LTV the loan is $750,000, principal and interest is about $5,116 and the payment is about $5,850. The DSCR is about 1.06x, which clears the standard minimum.
An Athmar Park duplex sells for $640,000 with two units at $2,000. At 70% LTV the loan is $448,000, the payment is about $3,526 and the DSCR is about 1.13x.
| Item | Fourplex at 75% | Fourplex at 60% | Duplex at 70% |
|---|---|---|---|
| Price | $1,250,000 | $1,250,000 | $640,000 |
| Loan | $937,500 | $750,000 | $448,000 |
| Combined rent | $6,200 | $6,200 | $4,000 |
| Estimated principal and interest | $6,395 | $5,116 | $3,056 |
| Taxes and insurance | $733 | $733 | $470 |
| DSCR | About 0.87x | About 1.06x | About 1.13x |
Every long-term rental in the City and County of Denver needs a residential rental license, which requires an inspection by a licensed inspector. On a fourplex, every unit is covered. Ask the seller for the current license and inspection, or plan time to obtain them.
Colorado requires for-cause grounds for most evictions and has updated security deposit and notice rules, while state law still bars local rent control. Review existing leases for compliance when you buy an occupied building.
Colorado assessors revalue property in odd-numbered years, and residential assessment rates have changed several times through recent legislation. Taxes are moderate compared with many states, which helps the ratio. Insurance is driven by hail: older flat or low-slope roofs on brick fourplexes and older shingles on duplexes can raise premiums and deductibles.
Ask for the roof's age and any hail claims history during your inspection period, and get a quote that shows the wind and hail deductible, not just the premium. A recently replaced roof can lower both and improve the ratio.
Many Capitol Hill buildings have original boilers, galvanized plumbing and limited electrical service. Utilities are not part of the DSCR, but landlord-paid heat in a single-boiler building is a real cost, and insurers look closely at old systems. Budget for upgrades and get the inspection early.
Most Denver 2-4 unit sales come with tenants. The loan can use current leases or market rent, depending on the program and the appraiser's rent schedule. If existing rents are well below market, the ratio on in-place rent may come out lower than you expect, and Colorado's for-cause eviction rules mean you generally cannot simply end leases to re-rent at market.
Ask for every lease, the deposit ledger and the rent payment history before you commit. A building with below-market rents can still be a good buy, but size the loan on the rent you will actually collect in the first year, and treat increases at renewal as upside rather than the base case.
Many Denver walk-ups have five to eight units. They remain residential on our programs, with max LTV that can be lower and varies by program; see our Denver 5-8 unit page. Buildings with nine or more units are commercial.
Send the address, unit mix, current rents, rental license status, tax bill and price through the form below, or call (877) 298-1001. We will show the loan amount that clears the ratio and options with sub-1.0 programs where they fit.
Yes. The loan qualifies on the combined rent of all four units. In central Denver, leverage is often below the maximum to keep the DSCR at 1.0x or better.
Prices are high relative to rents, so the payment at high leverage exceeds the rent. A larger down payment or a sub-1.0 DSCR program can make it work.
Long-term rentals in Denver need a residential rental license with an inspection. Have it current or plan the timing with the seller.
Often, but check whether the sides are separately owned. Two separately owned units may need two loans.
They can, for some borrowers and properties. Terms differ from standard programs.
Yes. Cash-out goes up to 75% LTV, subject to the rent covering the new payment. Seasoning varies by program.
It depends on the program and the appraisal. Many files use in-place leases, so size the loan on the rent you will actually collect.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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