Hawaii's small rental buildings are mostly duplexes, houses with an ohana unit, and older walk-up apartments in Honolulu. Prices are the highest in the country relative to rents, so honest DSCR math matters more here than anywhere.
In short: Yes. LendingStreet finances duplexes, triplexes and fourplexes across Hawaii 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 and cash-out up to 75% LTV, and the standard minimum DSCR is 1.0x with a 620 minimum credit score. In Hawaii, plan for the higher conveyance tax schedule for non-owner-occupant buyers, general excise tax on rent, and ratios that often require more equity.
On Oahu, duplexes and houses with ohana units are common in Kaimuki, Kapahulu, Moiliili near the University of Hawaii at Manoa, Kalihi, Palolo and parts of Ewa and Waipahu. Older walk-up buildings with a handful of units sit in Makiki, McCully and Moiliili. Military demand from Pearl Harbor-Hickam and Schofield Barracks supports rents in central and west Oahu.
On the neighbor islands, Hilo has lower prices than Oahu, while Maui and Kauai have high prices and tight supply, made tighter on Maui after the 2023 Lahaina fire.
| Area | Typical 2-4 unit stock | What to check |
|---|---|---|
| Honolulu urban core | Duplexes, ohana homes, older walk-ups | Very high prices vs rents |
| Central and west Oahu | Duplexes near military bases | Steady demand; newer subdivisions |
| Hilo and Big Island | Lower-priced duplexes | Lava zone; insurance availability |
| Maui and Kauai | Limited small multifamily | High prices; vacation rental limits |
The debt service coverage ratio compares the building's gross monthly rent with its monthly housing payment. On a duplex, triplex or fourplex, that rent is the total from all units, and the payment includes principal, interest, taxes, insurance and HOA dues where they apply.
Leases on occupied units are compared with the appraiser's rent survey, and a vacant unit is usually counted at market rent. Because the loan qualifies on the property, there are no W-2s or tax returns, and borrowing in an LLC is standard.
Run the numbers with figures you can verify. For a Hawaii purchase, that means taxes estimated for an investor owner, a written insurance quote covering every unit, and rents that match the leases or the local market, so the ratio holds up in underwriting.
Each county sets its own property tax classes and rates. Honolulu has a separate residential class with higher rates for higher-value homes that do not have a home exemption, which can apply to investor-owned properties over $1 million. Other counties have their own non-owner-occupied classes.
Hawaii's conveyance tax has a higher schedule for buyers of residential property who will not be claiming a home exemption, which covers investors. Rental income is also subject to the state general excise tax, which landlords pay on gross rents. That GET is not part of DSCR math, but it reduces cash flow.
This example is illustrative and not a quote. An investor buys a house with a permitted ohana unit in Honolulu for $1,600,000. Rent is $3,800 and $2,600, or $6,400 a month across both units. The main house rents for $3,800 and the ohana unit for $2,600.
In the 75% LTV column, the loan is $1,200,000, estimated principal and interest is about $7,984, taxes are $542 a month and insurance is $250, for a total payment of about $8,776 and a DSCR of about 0.73x. In the 60% LTV column, the loan is $960,000, estimated principal and interest is about $6,387, taxes are $542 a month and insurance is $250, for a total payment of about $7,179 and a DSCR of about 0.89x. Neither scenario reaches 1.0x. In Honolulu, investors often use sub-1.0 DSCR programs, bring more equity, or look at markets where rents are higher relative to price.
| Item | 75% LTV | 60% LTV |
|---|---|---|
| Purchase price | $1,600,000 | $1,600,000 |
| Combined monthly rent | $6,400 | $6,400 |
| Loan amount | $1,200,000 | $960,000 |
| Estimated principal and interest | $7,984 | $6,387 |
| Property taxes (monthly) | $542 | $542 |
| Insurance (monthly) | $250 | $250 |
| Total monthly payment | $8,776 | $7,179 |
| DSCR | About 0.73x | About 0.89x |
Hurricane coverage is often a separate policy in Hawaii, and premiums depend on location and construction. On the Big Island, properties in higher-risk lava zones can be hard to insure, which affects financing. Coastal properties may need flood insurance. Get quotes for all required coverage before relying on the numbers.
Hawaii's residential landlord-tenant code covers deposits and notices, and there is no statewide rent control. Short-term rentals are tightly limited: Honolulu bans most short-term rentals outside resort-zoned areas and has pushed for longer minimum stays, and Maui has moved to phase out many vacation rentals in apartment districts. For most 2-4 unit buildings, long-term leases are the realistic income.
Check whether the land is fee simple or leasehold, which still exists in some Honolulu areas and affects financing.
Rental agreements in Hawaii also need to account for the general excise tax, which many landlords pass through as part of the rent.
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.
Gather these before you apply.
Our investor loans are business-purpose loans on non-owner-occupied property, and we finance duplexes, triplexes and fourplexes throughout Hawaii. Tell us the address, purchase price or value, current rents and your goal, and the team will size the loan on the property's actual numbers. Use the form below to get a quote, or call (877) 298-1001.
Prices are very high relative to rents. Many properties need a larger down payment or a sub-1.0 DSCR program to qualify.
Yes. Buyers who will not claim a home exemption pay a higher conveyance tax schedule. Confirm the amount with escrow.
Only where nightly rentals are legal, mainly resort areas. Most Oahu 2-4 unit rentals qualify on long-term rent.
Yes, outside the highest-risk lava zones and where insurance is available. Hilo prices are lower than Oahu, which can help the ratio.
Yes. Cash-out goes up to 75% LTV, and the rent has to cover the new, larger payment at the program minimum. Seasoning varies by program.
No. The ratio is built from the property's rent and payment. Credit of 620 or higher, reserves and entity documents for an LLC are the main borrower items.
The vacant unit is usually counted at the appraiser's market rent, though some programs adjust for vacancy. A signed lease on that unit before closing can make the file stronger.
No. Our investor loans are business-purpose loans on non-owner-occupied property, and every unit must be a rental.
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