In El Paso, a fourplex often makes more sense than a single house. The combined rent of four units spreads the heavy Texas tax bill, and low prices keep the loan modest.
In short: LendingStreet finances El Paso duplexes, triplexes and fourplexes with DSCR loans that qualify on the combined rent of all units, with no W-2s or tax returns. Loans start at $150,000, purchases go up to 80% LTV, the minimum credit score is 620 and LLC borrowers are standard. Budget taxes at the full combined rate with no homestead exemption, since they are usually the largest expense after the loan payment.
The Northeast has many fourplexes and duplexes built in the 1970s and 1980s, close to Fort Bliss and leasing to service members and families. Central neighborhoods near UTEP, including Kern Place and Sunset Heights, have older brick duplexes and courtyard buildings, some expanded over the years. The east side has newer duplexes in a few subdivisions, along with scattered fourplexes along major corridors.
Construction is usually brick, stucco or block with flat or low-slope roofs. Many units have evaporative coolers instead of central air, which affects both rents and maintenance. Buildings with separately metered units and tenant-paid electric are easier to run than those where the owner pays utilities for the whole building.
| Area | Typical stock | Watch for |
|---|---|---|
| Northeast near Fort Bliss | 1970s-80s fourplexes and duplexes | Roof condition, cooling type |
| Central near UTEP | Brick duplexes, courtyard buildings | Legal unit count, older wiring |
| East side | Newer duplexes in some subdivisions | HOA rules, MUD taxes |
El Paso's zoning code sets which districts allow two-family and multi-family buildings. In older central areas, some courtyard properties were expanded over the decades, so confirm the legal unit count with the city and check permits for any added units. An unpermitted unit may not be counted toward rent.
Code enforcement applies to rentals, including property maintenance standards. Ask the seller about any open code cases before you sign.
This example is illustrative and not a quote. An investor buys a fourplex in the Northeast for $420,000. Each unit rents for $975, or $3,900 a month combined. Taxes at the full combined rate with no homestead exemption are budgeted at $820 a month, and insurance at $230.
At 75% LTV the loan is $315,000. Estimated principal and interest on a 30-year term is about $2,149, bringing the total payment to about $3,199. The DSCR is about 1.22x.
Taxes are more than a quarter of the payment, but four rents carry them. A single-family home with the same tax burden and one rent would struggle to reach 1.0x at the same leverage.
| Item | Amount |
|---|---|
| Purchase price | $420,000 |
| Loan at 75% LTV | $315,000 |
| Estimated principal and interest | $2,149 |
| Taxes (no homestead) | $820 |
| Insurance | $230 |
| Total payment | $3,199 |
| Combined rent | $3,900 |
| DSCR | About 1.22x |
Service members at Fort Bliss make up much of the Northeast renter base. Military tenants often receive a housing allowance, pay reliably and leave on orders, which means turnover can come with short notice. Plan for some vacancy between tenants and keep units ready to re-lease.
Appraisers use market rents from similar units nearby. In the Northeast, comparable fourplex rents are usually plentiful, which makes the rent schedule easier to support. Near UTEP, tenants are more often students and hospital staff, and leases tend to follow the school calendar.
Texas relies on property taxes, and El Paso's combined rates from the county, city, school district, college and hospital district are high relative to values. The El Paso Central Appraisal District often revalues after a sale, so budget on your purchase price at the full rate.
Owners can protest values each spring. On a fourplex, a successful protest can lower the payment and improve the ratio on future refinances.
Hail and wind storms occur in the region, and insurers look closely at roof age on flat and low-slope roofs. Get a quote before you set your offer. Units with evaporative coolers are cheaper to run but may rent for less than units with refrigerated air; factor that into rent assumptions.
Owner-paid water and common-area costs are not part of the DSCR formula, which uses principal, interest, taxes, insurance and HOA dues, but they reduce your cash flow.
Many Northeast fourplexes changed hands among local landlords for decades, and some carry deferred maintenance: tired roofs, original plumbing, worn cooling equipment and units that sit vacant between military moves. If a building cannot be leased as it stands, a DSCR loan may not fit right away.
In that case, a bridge or fix and flip loan can fund the purchase and the repairs, and a DSCR refinance can follow once the units are leased at market rent. Before you buy, price the exit: the expected rents, the full tax bill on the new value and a real insurance quote. If the refinance clears 1.0x at a realistic loan size, the plan holds together.
Keep records of the work and the costs. Appraisers and underwriters both look for evidence that the improvements support the higher value and rent.
Texas has no transfer tax and no mortgage recording tax, and title insurance is priced on a state-set schedule. Closing costs are mostly title, escrow, recording and lender fees, which keeps cash to close lower than in many states.
El Paso has many five to eight unit buildings that trade at moderate prices. They are still residential for our programs; see our El Paso 5-8 unit page, where leverage can vary by program. Nine or more units is commercial.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, price, rent roll, appraisal district record and insurance quote. LendingStreet will run the ratio at the full tax rate and show you options. Call (877) 298-1001 or use the form below. See also our Texas 2-4 unit page.
Four rents spread the high Texas tax bill, and low prices keep the loan modest, so the ratio often clears 1.0x.
The loan qualifies on the property's rent, whatever the tenant's source of income. Market rent from the appraisal or signed leases is used.
Not on our loans. Our investor loans are business-purpose loans on non-owner-occupied property, and investors do not get the homestead exemption.
Only legal, permitted units count toward rent. Confirm the unit count with the city.
Purchases go up to 80% LTV on some programs, so as little as 20% down plus closing costs.
No. Closing costs are mostly title, escrow, recording and lender fees.
Yes, though a DSCR loan may wait until the units are leased. A bridge or rehab loan can come first, followed by a DSCR refinance.
Yes. Owners can protest each spring with the El Paso Central Appraisal District.
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