Harrisburg's tall brick rowhouses were built for single families in the late 1800s and early 1900s, and many were later divided into two, three or four apartments. Those conversions, along with up-and-down duplexes on the West Shore, make up most of the region's small multifamily stock.
In short: LendingStreet finances Harrisburg-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, 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.
Midtown and Uptown have the largest concentration of converted rowhouses, many three stories tall with a unit per floor, along with corner buildings and larger Victorians split into apartments. Allison Hill has more, typically at lower prices and with more deferred maintenance. Near the Capitol and Front Street, buildings tend to rent to state workers and professionals.
On the West Shore, Lemoyne, Camp Hill, New Cumberland and Enola have up-and-down duplexes and side-by-side twins converted to two units. Steelton, Middletown near Penn State Harrisburg, and Carlisle near Dickinson College add more duplexes and small apartment houses.
A converted rowhouse has to be a permitted use for its unit count, or a documented legal nonconforming use. Many conversions are decades old; some were done with permits and some were not. Ask the zoning office for the building's approved unit count and check that the rental registration matches. A three-unit building that is legally a duplex will usually be valued and financed as a duplex.
If you plan to add a unit, expect a zoning review, building permits and, in some districts, parking requirements. Historic district rules can also apply to exterior changes in parts of Midtown and Uptown.
On the West Shore, each borough and township has its own zoning code. A twin converted to two units in one borough may be a permitted use, while the same building a mile away in a neighboring township may not be. Confirm with the municipality, not just the county.
This example is illustrative and not a quote. A converted three-story rowhouse in Midtown costs $285,000, with units renting for $950, $1,000 and $1,100, $3,050 a month. Taxes are about $520 and insurance $210 a month. At 75% LTV the loan is $213,750, estimated principal and interest is about $1,458, the payment is about $2,188 and the DSCR is about 1.39x.
An up-and-down duplex in Lemoyne costs $330,000, with two units at $1,350, $2,700 a month. Taxes are about $560 and insurance $150. At 75% LTV the loan is $247,500, the payment is about $2,398 and the DSCR is about 1.13x. The city triplex produces more rent per dollar; the West Shore duplex usually brings lower maintenance and steadier tenants.
| Item | Midtown triplex | Lemoyne duplex |
|---|---|---|
| Purchase price | $285,000 | $330,000 |
| Combined rent | $3,050 | $2,700 |
| Loan at 75% LTV | $213,750 | $247,500 |
| Estimated principal and interest | $1,458 | $1,688 |
| Taxes and insurance | $730 | $710 |
| Total payment | $2,188 | $2,398 |
| DSCR | 1.39x | 1.13x |
Harrisburg requires rental units to be registered and subject to inspection by its codes office, and multi-unit conversions draw attention to fire separation, egress, smoke and carbon monoxide detection and electrical capacity. Several West Shore and eastern suburban municipalities run their own rental programs. Keep current registrations and inspection results for each building; lenders and appraisers look for them.
Small multifamily tenants in Harrisburg include state employees, staff at UPMC Harrisburg and the Hershey medical center, workers at the distribution centers along I-81 and I-83, and students at Harrisburg University, Penn State Harrisburg, Messiah University and Dickinson College. One- and two-bedroom units dominate. Rents in the city are generally moderate, and buildings near the Capitol or with parking tend to command more.
Separate utility meters make a big difference to cash flow. Many older conversions share a single water or heating system, and the landlord pays. Those costs do not enter the DSCR, but they reduce your actual return, so price them into the offer and consider separating systems where practical.
Vacancy matters at closing. Lenders use the lease in place or a market rent estimate, depending on the program, so an empty unit can reduce the qualifying rent. Try to close with signed leases on every unit.
Taxes come from the county, the municipality and the school district, and Pennsylvania counties do not reassess on a set schedule, so use the parcel's current bill. Pennsylvania's realty transfer tax includes a 1% state share plus a local share that varies, commonly split between buyer and seller.
Buildings near the river, in Shipoke and parts of the West Shore and Middletown, can sit in mapped flood zones. Flood insurance is generally required there and counts in the payment.
Larger converted buildings and small apartment houses with five to eight units are still residential for our DSCR programs, with maximum LTV that can be lower and varies by program; see our Harrisburg 5-8 unit page. Nine or more units is commercial. If you own several small buildings, a blanket portfolio loan can combine five or more under one payment.
Send the address, price or current balance, unit mix, leases, tax bill and rental registration through the form below, or call (877) 298-1001. We will run the combined-rent DSCR at a few leverage levels and come back with options.
For a refinance, add the current mortgage statement and a list of recent work such as roofs, boilers, electrical upgrades or unit renovations. For a purchase, include the seller's rent roll and any inspection report. A complete file gets a faster, firmer answer.
Yes, if the unit count is legal. The loan qualifies on the combined rent of all units.
It will usually be valued and financed at the legal unit count. Confirm with the zoning office before you buy.
Harrisburg registers and inspects rental units through its codes office, and some suburbs have their own programs.
Up to 80% on a purchase and 75% on a cash-out refinance, if the rent clears the program minimum.
It is commonly split between buyer and seller, with a 1% state share plus a local share that varies.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
Not necessarily easier, but suburban duplexes often have fewer code issues and steadier tenants.
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