Fort Worth's small multifamily stock is split between two very different worlds: student-oriented duplexes near TCU that rent by the bedroom, and older converted houses and brick fourplexes on the near south and east sides that rent to workers and families.
In short: LendingStreet finances Fort Worth 2-4 unit rentals with DSCR loans that qualify on the combined rent of all units, with no W-2s or tax returns and LLC borrowers allowed. Loans start at $150,000, purchases go up to 80% LTV, cash-out refinances up to 75% and the minimum credit score is 620. Because Texas property taxes are high and investors get no homestead exemption, many Fort Worth duplexes and fourplexes clear 1.0x at around 75% LTV rather than the maximum.
Near TCU, Bluebonnet Hills, Westcliff and the streets around Berry Street have many side-by-side duplexes, some rebuilt in recent years with three or four bedrooms per side. They lease to students, often on 12-month leases that start in summer.
Fairmount, Ryan Place and the Near Southside have early 1900s houses divided into units, plus garage apartments and small brick fourplexes. Arlington Heights and the West 7th area have some older duplexes, and the east side, including Polytechnic Heights near Texas Wesleyan, Riverside and Meadowbrook, has 1950s and 1960s fourplexes at lower prices.
Fort Worth zoning separates one-family districts (the A districts) from the B two-family district and multifamily districts. A duplex in a B district is usually straightforward. Triplexes and fourplexes are generally multifamily uses, and many older ones in near-south neighborhoods are legal nonconforming, built before current zoning. Confirm the legal unit count with the city before you buy.
Fairmount and several other near-south neighborhoods are local historic districts, so exterior changes such as windows, porches and additions need city review. That adds time to renovations but also protects the look of the street.
TCU-area duplexes can produce high combined rent because each side may have three or four bedrooms. Underwriters use the lease or market rent for the unit, not a sum of individual room rents unless the program allows it, so document leases carefully.
Check parking and occupancy rules as well. Fort Worth limits the number of unrelated occupants in some residential districts, and neighborhoods near campus watch closely for overcrowding. A lease that exceeds those limits can create code problems and weaken the income you are relying on.
Student turnover is predictable but steady. Many owners pre-lease for the next school year in the fall or winter, which helps show a lender stable income at refinance.
A Fort Worth fourplex can be taxed by Tarrant County, the city, the school district, Tarrant County College and the hospital district. Combined rates are high compared with most states, and rentals get no homestead exemption. Look up the full breakdown on the Tarrant Appraisal District site and budget on that number.
Insurance is the second issue. Wind and hail deductibles and older roofs on 1950s and 1960s fourplexes can raise premiums, so get a quote early.
This example is illustrative and not a quote. A rebuilt TCU-area duplex with three bedrooms per side sells for $540,000 and leases for $4,400 a month combined. At 75% LTV the loan is $405,000. Estimated principal and interest is about $2,832, taxes about $1,035 and insurance $230, for a total of about $4,097 and DSCR of about 1.07x.
A 1960s brick fourplex on the east side sells for $560,000 with four units at $1,150 each, or $4,600 combined. At 75% LTV the loan is $420,000. Estimated principal and interest is about $2,937, taxes about $1,073 and insurance $300, for a total of about $4,310 and DSCR of about 1.07x.
| Item | TCU-area duplex | East side fourplex |
|---|---|---|
| Price | $540,000 | $560,000 |
| Loan amount (75% LTV) | $405,000 | $420,000 |
| Combined rent | $4,400 | $4,600 |
| Estimated principal and interest | $2,832 | $2,937 |
| Taxes | $1,035 | $1,073 |
| Insurance | $230 | $300 |
| Total payment | $4,097 | $4,310 |
| DSCR | About 1.07x | About 1.07x |
Many Fort Worth duplexes are sold by long-time owners who may have lived in one side, carried a homestead exemption or had a below-market appraisal. After your purchase, the appraisal district can reset the value. If you run your numbers on the seller's bill, the ratio can drop below 1.0x the following year.
Budget taxes on your purchase price at the full combined rate. If the numbers work only at the seller's tax figure, lower your leverage or renegotiate.
Buildings with five to eight units are still residential for our programs, with more detailed underwriting and max LTV that can be lower. Fort Worth has a number of small brick apartment buildings in that range in the near south and east sides, often with shared laundry, surface parking and owner-paid water. See our Fort Worth 5-8 unit page. Buildings with nine or more units are commercial.
Investors who bought a tired fourplex with cash or a bridge loan and renovated it can use a DSCR cash-out refinance up to 75% LTV once the units are leased. Seasoning varies by program. Rate-and-term refinances can go up to 80% LTV on some programs. Texas cash-out rules that apply to homesteads do not apply to non-owner-occupied rentals.
Before you refinance, request your current appraisal notice and consider whether a protest could lower the value used for taxes. A lower tax bill improves the ratio and can support a larger loan.
Send the address, unit count, leases, tax record and your target loan. If the building is vacant or mid-renovation, include rent estimates and the repair budget so the team can tell you whether to start with a bridge loan. Call (877) 298-1001 or use the form below. Statewide context is on our Texas 2-4 unit page.
Yes. The loan qualifies on the combined rent of both units, documented by leases or market rent.
Usually property taxes. Texas rates are high and rentals get no homestead exemption, so the payment is larger than in many states.
Many are legal nonconforming. Confirm the legal unit count with the city, and note that exterior work in historic districts needs review.
It depends on the program. Most underwrite the unit's lease or market rent, supported by the appraisal. Ask before you assume per-bedroom income, especially on rebuilt duplexes with four or more bedrooms per side.
DSCR loans start at $150,000 with no stated maximum.
Yes. They are residential for our programs, with more detailed underwriting.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
No. Texas has no state real estate transfer tax, though recording fees and title insurance apply.
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