Open 24/7, 365 Days/Yr | Call Us: (877) 298-1001 NOTE: For a FASTER Response, please Inquire Using Form
DSCR · Florida 2-4 Units

DSCR Loans for 2-4 Unit Rentals in Florida

Florida duplexes and fourplexes range from 1950s concrete block buildings in Tampa and St. Petersburg to newer side-by-sides in Jacksonville and Orlando. Rents are solid in most metros, but insurance can make or break the ratio.

Get a quote →

In short: LendingStreet offers DSCR loans on 2-4 unit rentals throughout Florida, sized on the total rent from every unit rather than your personal income. Loans start at $150,000 with no stated maximum, with up to 80% LTV on a purchase, up to 75% on a cash-out, a 1.0x standard minimum ratio and a 620 minimum credit score; LLC borrowers are standard. In Florida, get an insurance quote first: wind, flood and roof age often move the payment more than anything else on a 2-4 unit file.

Florida 2-4 unit markets

Tampa's Seminole Heights, Sulphur Springs and Tampa Heights have older block duplexes, and St. Petersburg's Kenwood and Old Northeast have small buildings and garage apartments. Jacksonville's Springfield, Riverside and Murray Hill have historic two-family homes and many postwar duplexes at lower prices.

Orlando has duplexes in College Park, Pine Hills and around Colonial Drive, while Broward County's Hollywood and Fort Lauderdale neighborhoods have older triplexes and fourplexes. Miami's Little Havana and Allapattah have small multi-unit buildings with high demand and high prices.

AreaTypical 2-4 unit stockWhat to check
Tampa and St. Petersburg1950s block duplexes, small buildingsRoof age; flood zone near the bay
JacksonvilleHistoric two-families and postwar duplexesLower prices; insurance on older homes
OrlandoDuplexes and small fourplexesWorkforce demand; HOA in newer builds
South FloridaTriplexes and fourplexesHigh prices, wind insurance, flood

How the ratio works on a duplex, triplex or fourplex

A DSCR loan on a 2-4 unit building looks at one number: the combined monthly rent of every unit divided by the full monthly payment, which includes principal, interest, property taxes, insurance and any HOA dues. A ratio of 1.0x means the rent exactly covers the payment, and that is the standard minimum.

For occupied units, the lender uses the signed leases and checks them against the appraiser's market rent schedule. For vacant units, market rent from the appraisal is usually used. No W-2s or tax returns are needed, and the property can be held in an LLC.

The ratio is only as accurate as the costs behind it. In Florida, use the current local tax bill as it will look after your purchase and a real insurance quote for the whole building, not a listing estimate or the seller's numbers, before you set your offer.

Non-homestead taxes and doc stamps

Florida's 3% cap on assessment increases applies only to homestead property. Investment property is non-homestead, where increases are capped at 10% a year on non-school taxes. When you buy, the property is reassessed to market, so the seller's homestead bill is not a guide to yours.

Florida charges documentary stamp tax on deeds and on new promissory notes, plus an intangible tax on new mortgages. On a purchase with financing, the note and mortgage taxes are buyer costs. Ask the title company for the full estimate early.

Worked example: a duplex in Jacksonville

This example is illustrative and not a quote. An investor buys a duplex in Jacksonville for $330,000. Rent is $1,350 per unit, or $2,700 a month across both units. Taxes reflect a non-homestead reassessment at the purchase price, and insurance reflects a wind policy on a 12-year-old roof.

At 80% LTV, the loan is $264,000, estimated principal and interest is about $1,756, taxes are $450 a month and insurance is $350, for a total payment of about $2,556 and a DSCR of about 1.06x. The ratio clears 1.0x, but not by much. If the insurance quote came in higher, a slightly lower loan amount would be needed.

ItemAmount
Purchase price$330,000
Combined monthly rent$2,700
Loan amount (80% LTV)$264,000
Estimated principal and interest$1,756
Property taxes (monthly)$450
Insurance (monthly)$350
Total monthly payment$2,556
DSCRAbout 1.06x

Wind, flood and roof age

Florida's insurance market has been volatile, and many owners end up with Citizens Property Insurance or a smaller carrier. Insurers look closely at roof age and type, and an older roof can mean higher premiums or no coverage at all. Wind mitigation features help. Flood insurance is required in mapped flood zones, and many inland areas flood too. Because the premium sits inside the payment, a high quote lowers the ratio directly.

Florida leasing rules

Florida preempts local rent control in most circumstances, and a 2023 state law limited local landlord-tenant ordinances, so rules are largely set by the state. Some cities still require business tax receipts or rental registration, and condo or HOA rules can restrict leasing in some duplex communities.

If one unit will be a vacation rental, county and city STR registration and tourist development tax rules apply, so check them before you rely on nightly income.

Before closing, confirm that each unit is permitted and that any garage apartment or added unit has proper approvals.

Duplex, triplex, fourplex or 5-8 units

Two to four units are residential for DSCR purposes, and the same core terms apply: loans from $150,000 with no stated maximum, up to 80% LTV on a purchase and up to 75% on a cash-out refinance. Each added unit spreads vacancy risk, since one empty unit hurts a fourplex less than a duplex.

Buildings with five to eight units are still residential but are often underwritten with more review, and max LTV can be lower; terms vary by program. Nine or more units are commercial and fall under our multifamily programs.

What to have ready

Having these items ready shortens underwriting and keeps the appraisal on track.

How LendingStreet reviews a Florida 2-4 unit rental

LendingStreet finances business-purpose DSCR loans on 2-4 unit rentals across Florida. Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, price, rents and target leverage, and we will run the ratio on realistic taxes and insurance and come back with options. You can call (877) 298-1001 or use the form below.

Common questions

Why is insurance so important for a Florida DSCR loan?

Because it is part of the payment. A higher wind or flood premium lowers the ratio directly, so get a firm quote early.

Does Florida's 3% tax cap apply to my rental?

No. That cap is for homestead property. Rentals are non-homestead, with a 10% cap on non-school taxes after the purchase reassessment.

Can I finance a South Florida fourplex?

Yes. Higher prices and insurance often mean a lower loan amount or a sub-1.0 DSCR program, but many South Florida fourplexes work.

Do newer Florida duplexes insure better?

Usually. Newer roofs and construction built to current wind codes tend to draw lower premiums, which helps the ratio.

How is a vacant unit treated?

Usually at market rent from the appraisal. Programs vary, so a signed lease on the vacant unit can help if the ratio is close.

Can I live in one unit and rent the others?

No. Our investor loans are business-purpose loans on non-owner-occupied property, so the borrower cannot live in any unit.

How much cash can I pull from a Florida duplex or fourplex?

Up to 75% of appraised value, minus the payoff and closing costs, if the rent still clears the program minimum at the new payment. Seasoning varies by program.

Do I need tax returns to finance a Florida fourplex?

No. DSCR loans qualify on the building's rent, not your personal income. Expect a 620 minimum credit score, reserves and LLC documents if you use an entity.

DSCR loans in FloridaFlorida 5-8 unit DSCR loansFlorida DSCR cash-out refinanceFlorida blanket portfolio loansDuplex investment property loansTriplex investment property loansFourplex investment property loansDSCR calculator

Get Your 2-4 Unit DSCR Quote

2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.

By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.