The triple-decker is the signature rental building of Massachusetts, and Worcester, Boston, Lowell, Springfield and many other cities are full of them. They are a natural fit for DSCR loans based on combined rent.
In short: LendingStreet offers DSCR loans on 2-4 unit rentals throughout Massachusetts, 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 Massachusetts, plan for the state lead law, Title 5 septic inspections outside sewered areas, and residential exemptions that lower owner-occupants' tax bills but not yours.
Worcester has thousands of triple-deckers, and Boston's Dorchester, East Boston, Jamaica Plain and Roslindale have many as well. Somerville, Quincy, Lowell, Lawrence, Brockton, Fall River and New Bedford also have large stocks of two- and three-family homes.
Springfield, Chicopee and Holyoke in western Massachusetts offer lower prices.
Triple-deckers usually have one large unit per floor, often with three bedrooms, front and back porches, and separate heating systems. Many were built between 1880 and 1930 for factory workers. They rent well to families and roommates.
Prices vary widely. Boston-area triple-deckers can cost well over $1 million, while buildings in Worcester, Lowell, Fall River and Springfield cost far less, with rents that often support stronger ratios.
| Area | Typical 2-4 unit stock | What to check |
|---|---|---|
| Worcester | Triple-deckers | Lead law; heating |
| Boston | Triple-deckers and two-families | High prices; residential exemption |
| Lowell, Lawrence, Brockton | Two- and three-families | Condition and code |
| Springfield area | Lower-priced multi-families | Condition |
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 Massachusetts, 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.
Massachusetts towns assess at full market value, and Proposition 2 1/2 limits how fast a town's total levy can grow. Boston, Cambridge, Somerville and some other cities offer a residential exemption for owner-occupants, which shifts more of the burden to investor-owned buildings.
The state deed excise is customarily paid by the seller. Buyers pay recording and title costs.
Boston, Somerville and Cambridge set separate residential and commercial rates, and the owner-occupant residential exemption can be large. Investors do not get it, so use the full tax bill.
Proposition 2 1/2 limits a town's total levy growth, not an individual bill, so a building's taxes can still rise after a revaluation.
This example is illustrative and not a quote. An investor buys a triple-decker in Worcester for $750,000. Rent is $2,000 per unit, or $6,000 a month across all three units. Taxes reflect Worcester's residential rate.
At 80% LTV, the loan is $600,000, estimated principal and interest is about $3,992, taxes are $812 a month and insurance is $300, for a total payment of about $5,104 and a DSCR of about 1.18x. The building clears 1.0x.
| Item | Amount |
|---|---|
| Purchase price | $750,000 |
| Combined monthly rent | $6,000 |
| Loan amount (80% LTV) | $600,000 |
| Estimated principal and interest | $3,992 |
| Property taxes (monthly) | $812 |
| Insurance (monthly) | $300 |
| Total monthly payment | $5,104 |
| DSCR | About 1.18x |
Triple-deckers are wood-frame, often with older electrical and heating systems, and insurers ask about both. Snow load and ice dams are routine claims. Coastal areas may need flood coverage.
Massachusetts insurers may require updated electrical service and heating systems, and older porches and stairs are common inspection items. Ask about knob-and-tube wiring and the age of each heating system.
The Massachusetts Lead Law requires owners to delead units built before 1978 when a child under six lives there. Outside sewered areas, Title 5 requires a septic inspection at sale. Massachusetts banned rent control by ballot in 1994, though proposals to change that come up, so check current law.
A smoke and carbon monoxide certificate is required at sale.
Massachusetts tenant law is protective, with strict rules on security deposits, and some cities, including Boston, require rental registration and inspections. Plan for compliance before you close.
A duplex, triplex and fourplex all qualify the same way, on combined rent, with up to 80% LTV on purchases and up to 75% on cash-out. The practical difference is risk: a duplex with one vacant unit loses half its income, while a fourplex loses a quarter.
If you are looking at a five- to eight-unit building, it is still a residential loan, but expect closer review and possibly lower leverage, which varies by program. Buildings of nine units or more move to commercial financing.
Having these items ready shortens underwriting and keeps the appraisal on track.
Share the property address, unit count, rents and the loan amount you want. LendingStreet will check the ratio at a few loan amounts using local tax and insurance figures and show you what fits, including sub-1.0 DSCR programs where they make sense. Our investor loans are business-purpose loans on non-owner-occupied property. Get a quote with the form below or call (877) 298-1001.
Yes. For units built before 1978, owners must delead or control lead hazards when a child under six lives there, and the law applies regardless of whether the owner knew about the lead.
Title 5 is the state septic code. Outside areas with town sewer, a septic system inspection is generally required when a property is sold.
Yes. Worcester has one of the largest triple-decker stocks in the state, and we qualify them on the combined rent of all three units.
Yes. We finance 2-4 unit rentals in Springfield, Chicopee, Holyoke and throughout Massachusetts.
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.
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.
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