Fayetteville has more small multifamily than most cities its size, and the reason is obvious from a map. Duplexes and fourplexes cluster along the roads that lead to Fort Bragg's gates, built over decades to house junior enlisted soldiers and young families who want to live close to work.
In short: LendingStreet finances Fayetteville-area 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 with no stated maximum, purchases go up to 80% LTV, cash-out goes up to 75% LTV, the standard minimum DSCR is 1.0x and the minimum credit score is 620. LLC borrowers are standard.
The densest clusters are along Yadkin Road, Bragg Boulevard and the streets between them, in Spring Lake just outside the base, and in pockets of west Fayetteville off Raeford and Cliffdale roads. Most of these are one-story brick or frame duplexes from the 1970s through the 1990s, plus some two-story fourplexes. Hope Mills and parts of Hoke County have newer duplexes and townhome-style buildings.
Tenants are mostly junior enlisted soldiers, young military families and civilian workers on post, plus staff at Cape Fear Valley Medical Center and students at Fayetteville State University and Fayetteville Technical Community College.
Many tenants pay rent from their Basic Allowance for Housing, which is set by rank and duty location and updated each year. That gives landlords a fairly clear sense of what the market will bear for a two-bedroom unit near the base. It also means rents can move when allowance rates change. Underwriting uses actual leases and the appraiser's market rent estimate, not the allowance itself, but it is a useful check on whether your rents are realistic.
This example is illustrative and not a quote. An investor buys a brick duplex off Raeford Road for $255,000. Each side rents for $1,050, for $2,100 combined. At 80% LTV the loan is $204,000. Estimated principal and interest is about $1,392, taxes are $265 and insurance is $150, for a total of about $1,807. DSCR is about 1.16x.
Another investor buys a fourplex near Yadkin Road for $420,000. Each unit rents for $925, or $3,700 combined. At 75% LTV the loan is $315,000. Estimated principal and interest is about $2,149, taxes are $440 and insurance is $240, for a total of about $2,829. DSCR is about 1.31x. The fourplex has more cushion, which helps when a unit turns over on short notice.
| Item | Raeford Road duplex | Yadkin Road fourplex |
|---|---|---|
| Price | $255,000 | $420,000 |
| Loan amount | $204,000 (80% LTV) | $315,000 (75% LTV) |
| Combined rent | $2,100 | $3,700 |
| Estimated principal and interest | $1,392 | $2,149 |
| Taxes and insurance | $415 | $680 |
| Total monthly payment | $1,807 | $2,829 |
| DSCR | 1.16x | 1.31x |
The Servicemembers Civil Relief Act lets service members end a lease early when they receive permanent change of station or deployment orders. Leases near Fort Bragg usually include a military clause that reflects this. For a 2-4 unit building, that means more frequent turnover than in a typical market, concentrated in the summer.
Plan for it. Budget for turns and short vacancies, keep units rent-ready and work with a manager who knows the military market. Lenders look at the leases in place and the market rent, so a building with one vacant unit at closing can still qualify if the market rent supports it.
The City of Fayetteville's unified development ordinance, and the codes for Spring Lake, Hope Mills and Cumberland County, decide where two- to four-unit buildings are allowed. Many older duplexes along the base corridors are in zones that permit them, but some were built or converted under older rules. Confirm the zoning district and the legal number of units before you buy, especially for a house that was split into apartments.
Property taxes are a county rate plus a city or town rate inside municipal limits, applied to assessed value. Cumberland County reappraises on a regular cycle, so ask when the next revaluation is scheduled and how recent sales compare with the current assessment. North Carolina charges an excise tax on deed transfers of $1 per $500 of value, usually paid by the seller.
Insurance is moderate for the state, but the Cape Fear River and local creeks flood in big storms, as they did in Hurricanes Matthew and Florence. Pull the flood zone for every building.
Appraisers use sales of similar small multifamily buildings and a rent schedule for each unit. Fayetteville has a steady supply of duplex sales, so comparables are usually available. For older buildings, expect notes on roof age, HVAC, windows and any deferred maintenance, which can affect value and insurance. Bring signed leases and a current rent roll to support the income. If the appraiser's rent schedule comes in below your leases, ask which figure the program uses, since some use the lower of the two.
Investors who outgrow duplexes often move into 5-8 unit buildings along the same corridors. Those still fall under our residential DSCR programs, though max LTV can be lower and varies by program; see our Fayetteville 5-8 unit DSCR loans page. Owners with five or more rentals can combine them into a blanket portfolio loan, which also helps when a lower-priced duplex is too small to meet the loan minimum on its own.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, price, rent roll and lease terms through the form below or call (877) 298-1001. We will run the combined-rent ratio and come back with options. Statewide details are on our North Carolina 2-4 unit rental loans page.
On the combined rent of both units compared with the full monthly payment. No W-2s or tax returns are needed.
Underwriting uses the leases and the appraiser's market rent estimate. The allowance is a useful benchmark but not the qualifying figure.
It affects cash flow more than qualification. Lenders look at current leases and market rent, so keep units rent-ready.
Sometimes. A lower-priced duplex may need a larger down payment to stay at a workable loan size, or several properties can be combined into a blanket loan.
Yes. Cash-out goes up to 75% LTV, as long as the combined rent covers the new payment at the program minimum.
The appraiser's market rent estimate can often support the vacant unit. Signed leases on the other units help.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so every unit must be rented.
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