In Baltimore, many 2-4 unit rentals are rowhomes divided into apartments. Across Maryland, investors also buy duplexes in Hagerstown, Frederick and Salisbury and small buildings near Washington, DC.
In short: Yes. LendingStreet finances duplexes, triplexes and fourplexes across Maryland 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 Maryland, the items to plan for are rental licensing, lead paint registration for older buildings, transfer and recordation taxes, and Baltimore ground rent.
Baltimore's Charles Village, Hampden, Highlandtown, Patterson Park, Canton and Mount Vernon have rowhomes and larger houses divided into two or three units. Many are century-old brick buildings.
In the DC suburbs, Silver Spring, Takoma Park and Hyattsville have small multi-unit buildings, while Hagerstown, Frederick, Cumberland and Salisbury offer lower prices.
Baltimore rowhomes converted to two or three units vary a lot in quality. Confirm that the conversion was permitted and that the city's records show the number of units you plan to rent.
| Area | Typical 2-4 unit stock | What to check |
|---|---|---|
| Baltimore City | Rowhome conversions | Rental license; lead; ground rent |
| Montgomery County | Small buildings | Rent stabilization; licensing |
| Prince George's County | Duplexes and small buildings | Local rent rules; licensing |
| Hagerstown, Frederick, Salisbury | Duplexes at lower prices | Condition |
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 Maryland 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.
Maryland reassesses property every three years. The homestead tax credit, which limits increases, applies only to owner-occupants. Baltimore City has one of the highest tax rates in the state.
Maryland charges a state transfer tax plus county transfer and recordation taxes, which together make closing costs among the higher in the country. They are often split by contract. Get the full estimate from the title company.
Baltimore City's rate is roughly double that of most surrounding counties, which is why city buildings with strong rents can still have tighter ratios. Baltimore County, Anne Arundel and Howard have lower rates.
This example is illustrative and not a quote. An investor buys a rowhome converted to two units in Highlandtown for $360,000. Rent is $1,600 and $1,400, or $3,000 a month across both units. Taxes reflect Baltimore City's rate without the homestead credit.
At 80% LTV, the loan is $288,000, estimated principal and interest is about $1,916, taxes are $675 a month and insurance is $150, for a total payment of about $2,741 and a DSCR of about 1.09x. The building clears 1.0x, though the city tax bill takes a big share of the payment.
| Item | Amount |
|---|---|
| Purchase price | $360,000 |
| Combined monthly rent | $3,000 |
| Loan amount (80% LTV) | $288,000 |
| Estimated principal and interest | $1,916 |
| Property taxes (monthly) | $675 |
| Insurance (monthly) | $150 |
| Total monthly payment | $2,741 |
| DSCR | About 1.09x |
Baltimore rowhomes may have flat roofs, older electrical and shared walls. Insurers may ask about the heating system and roof. Coastal and Chesapeake Bay areas may need flood coverage.
Older buildings may have knob-and-tube wiring or older boilers, and insurers may require updates. Get a full quote early, and check flood maps for properties near the harbor, the bay and rivers.
Baltimore City requires a rental license with inspection for rental units, and Montgomery County and Prince George's County have licensing too. Montgomery County adopted rent stabilization in 2023, and Takoma Park has long had rent stabilization. Maryland requires rental units built before 1978 to be registered with the state for lead paint and to meet lead risk reduction standards.
Some Baltimore properties are subject to ground rent, a small annual payment to a separate owner of the land. Check title for it.
Rental licensing in Baltimore City requires a home inspection by a licensed inspector. Prince George's County has also adopted rent limits in recent years, so check whether they are still in effect in any county where you buy.
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 Maryland. 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.
Yes. Baltimore City requires a rental license for rental units, which involves an inspection by a licensed home inspector. Renew it on schedule to keep collecting rent legally.
It is a small annual payment owed to a separate owner of the land under some Baltimore properties. Your title company should identify it, and it can often be redeemed.
Yes. Rental units built before 1978 must be registered with the Maryland Department of the Environment and meet lead risk reduction standards at each turnover.
Yes. We finance 2-4 unit rentals throughout Maryland, qualified on combined rent.
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.
Usually at market rent from the appraisal. Programs vary, so a signed lease on the vacant unit can help if the ratio is close.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so the borrower cannot live in any unit.
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.
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