Des Moines has two very different kinds of 2-4 unit rentals: brick fourplexes and converted houses in the older neighborhoods around Drake, Ingersoll and Sherman Hill, and newer twin homes going up in Ankeny, Altoona and Waukee.
In short: LendingStreet finances Des Moines duplexes, twin homes, 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, purchases go up to 80% LTV and cash-out to 75% LTV, and the standard minimum DSCR is 1.0x. In Des Moines, the two things to verify early are the full tax bill after any abatement and, for twin homes, whether both sides are one parcel or two.
Around Drake University, on the streets between University Avenue and Forest Avenue, many houses were split into two or three units decades ago and rent to students and staff. Along Ingersoll and Grand avenues and in the Roosevelt and Woodland areas, brick fourplexes and small walk-ups from the early 1900s line the side streets. Sherman Hill has Victorian homes converted to apartments, many in a historic district with design review for exterior changes.
On the east side and the south side, investors find smaller frame duplexes at lower prices. They can cash flow, but some fall below our $150,000 loan minimum at typical leverage.
Ankeny, Altoona, Waukee, Grimes and Norwalk have built many side-by-side twin homes. Some are platted as two separate lots, each sold on its own; others are a single parcel with two units. If the sides are separate parcels, each side is financed as a single-family home, and a single-family DSCR loan on one side must meet the $150,000 minimum by itself. If it is one parcel, it can be financed as a duplex on combined rent.
Newer twin homes rent well to young professionals and families working at the region's insurance, financial and manufacturing employers, and they usually need fewer repairs than older city buildings.
| Stock | Where | What to check |
|---|---|---|
| Converted houses | Drake neighborhood, Sherman Hill | Legal unit count; historic district rules |
| Brick fourplexes | Ingersoll, Roosevelt, Woodland | Boiler, electrical, parking |
| Frame duplexes | East side, south side | Price vs $150,000 minimum |
| Twin homes | Ankeny, Altoona, Waukee, Grimes | One parcel or two; abatement |
Confirm that the city's zoning and the Polk County Assessor's record agree on the number of units. A converted house with an unpermitted attic unit is a triplex on the listing and a duplex at appraisal. In Sherman Hill and other historic districts, exterior changes such as new windows, porches or stairs may need design review, which affects renovation budgets and timelines.
Des Moines requires a rental certificate after inspection. Ask the seller for current certificates and inspection results. Older buildings often need work on egress, smoke detectors and electrical before they pass.
This example is illustrative and not a quote. A single-parcel twin home in Ankeny sells for $410,000, with each side renting for $1,650. At 75% LTV the loan is $307,500 and estimated principal and interest is about $2,098. Taxes at the full post-abatement bill are about $550 and insurance about $170, for a total payment of about $2,818 and a DSCR near 1.17x.
A brick fourplex near Drake sells for $360,000, with four units at $875. At 75% LTV the loan is $270,000, estimated principal and interest is about $1,842, taxes are about $600 and insurance about $230. The total payment is about $2,672 and the DSCR is about 1.31x.
| Item | Ankeny twin home | Drake-area fourplex |
|---|---|---|
| Price | $410,000 | $360,000 |
| Loan at 75% LTV | $307,500 | $270,000 |
| Combined rent | $3,300 | $3,500 |
| Estimated principal and interest | $2,098 | $1,842 |
| Taxes | $550 | $600 |
| Insurance | $170 | $230 |
| DSCR | About 1.17x | About 1.31x |
Polk County assessors revalue in odd-numbered years, and Iowa's residential rollback sets how much of the assessed value is taxed. Investors do not receive homestead credits. Des Moines and several suburbs have offered tax abatement on new construction, which lowers bills for the first years and then steps up. On a newer twin home, ask how much abatement remains and budget the full bill if it ends soon.
Drake-area units lease reliably, often a year in advance, with heavier wear and annual turnover. Leasing by the whole unit rather than by the bedroom keeps the file simple. Check city occupancy limits for unrelated tenants before you count on a high per-bedroom rent.
Beyond students, older Des Moines 2-4 unit buildings rent to hospital staff at Iowa Methodist and MercyOne, downtown office workers and young professionals who want to live near the Ingersoll and East Village restaurant districts. Units with off-street parking and in-unit laundry lease faster and hold tenants longer, which matters in a market with real winters.
If a building needs substantial renovation before it rents at market, a bridge or fix and flip loan can carry the work, with a DSCR refinance once the units are leased.
Hail is common in central Iowa, and insurers look at roof age on every building. Some older neighborhoods north of downtown and near the rivers flooded in 2008; check the flood zone for each property and include any flood premium in the payment.
Some Ingersoll and Sherman Hill buildings have five to eight units. They remain residential on our programs, with max LTV that can be lower and varies by program; see our Des Moines 5-8 unit page. Nine or more units is commercial.
To request a 2-4 unit quote, send the address, unit count, rents, tax bill and abatement details, and price through the form below, or call (877) 298-1001.
If both sides are on one parcel, yes, on combined rent. If each side is a separate lot, each is financed as a single-family home.
It lowers taxes while it lasts. If abatement ends during your hold, size the loan on the full bill.
Yes, rental property in Des Moines needs a certificate after inspection. Have it current or plan to obtain it.
Yes. The loan qualifies on combined rent, with a 1.0x standard minimum DSCR and no tax returns.
At 75% LTV the loan may fall below our $150,000 minimum. Consider a larger building or a blanket loan for five or more rentals.
Yes. Cash-out goes up to 75% LTV, and seasoning varies by program.
Students and staff near Drake, hospital workers, downtown office employees and young professionals, plus families in suburban twin homes.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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