Drive through parts of Edinburg, McAllen or Mission and you will see block after block of fourplexes: one-story or two-story buildings with four units, separate meters and parking in front. They are the Rio Grande Valley's signature small rental, and many were built specifically to rent.
In short: LendingStreet finances McAllen-area duplexes, triplexes and fourplexes 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 with no stated maximum, purchases go up to 80% LTV and the standard minimum DSCR is 1.0x. Because the Valley's fourplexes often rent well for their price, many clear 1.0x even after Texas property taxes.
Unlike older Northern cities where small rentals are converted houses, much of the Valley's 2-4 unit housing was purpose-built in the last 25 years. Fourplexes cluster near UTRGV in Edinburg, along corridors in north and south McAllen, and in growing parts of Mission, Pharr and San Juan. Duplexes are common in the same areas and in Weslaco and Harlingen.
Because many buildings are newer, investors often find separate electric meters, central air for each unit, and fewer major repair surprises than in pre-war buildings. Older duplexes in central McAllen and Pharr exist too and need more inspection work.
Tenants include UTRGV students and staff, nurses and staff at hospitals in McAllen and Edinburg, school district employees, and workers in retail, logistics and cross-border trade. Population growth across Hidalgo County has kept demand for two- and three-bedroom units steady.
Student-heavy buildings near campus turn over more often. Family-oriented fourplexes in McAllen and Mission tend to have longer tenancies. Both can work, but the rent and vacancy you assume should match the tenant base.
Rents in the Valley are lower than in Austin, San Antonio or Houston, but so are prices. That balance is what makes the fourplex model work here: four modest rents on a building that costs about what a single house costs in a bigger Texas metro.
McAllen's zoning code includes districts that allow duplexes and fourplexes, and Edinburg, Mission and Pharr have their own codes. Most purpose-built fourplexes were permitted as such, but confirm the legal unit count and zoning with the city, especially if a building has been subdivided or a unit added later. Subdivision deed restrictions can also limit use.
If you are buying in a development where fourplexes were built as a group, ask whether there is an owners association and what it charges. Association dues, shared drainage or common area costs are part of the payment and lower the ratio. Also confirm that each building sits on its own lot with its own legal description, since that affects how each one can be financed and later sold.
This example is illustrative and not a quote. An investor buys a newer Edinburg fourplex for $520,000. Each unit rents for $1,150, for $4,600 a month. With no homestead exemption, taxes are budgeted at $1,040 a month at the full combined rate, and insurance is $260.
At 80% LTV the loan is $416,000. Estimated principal and interest is about $2,909, the total payment is about $4,209 and DSCR is about 1.09x. At 75% LTV the loan is $390,000, the payment about $4,027 and DSCR about 1.14x.
Compare a $280,000 McAllen duplex renting for $2,250. At 75% LTV the $210,000 loan has a payment of about $2,198 including taxes and insurance, for DSCR of about 1.02x. The duplex barely clears, while the fourplex has room to spare at either leverage, because four units of rent carry the tax and insurance more easily than two.
Taxes are the swing factor in both cases. If the fourplex's real tax bill came in 20% higher than budgeted, DSCR at 80% LTV would still sit above 1.0x, but the duplex would slip below it. Get the appraisal district record before you set your offer.
| Item | Fourplex, 80% LTV | Fourplex, 75% LTV | Duplex, 75% LTV |
|---|---|---|---|
| Price | $520,000 | $520,000 | $280,000 |
| Loan | $416,000 | $390,000 | $210,000 |
| Estimated principal and interest | $2,909 | $2,727 | $1,468 |
| Taxes and insurance | $1,300 | $1,300 | $730 |
| Total payment | $4,209 | $4,027 | $2,198 |
| Monthly rent | $4,600 | $4,600 | $2,250 |
| DSCR | About 1.09x | About 1.14x | About 1.02x |
Texas property taxes are the line most likely to change your numbers. A fourplex in Edinburg may be taxed by Hidalgo County, the city, Edinburg CISD, South Texas College and a drainage district. Look up every taxing unit on the Hidalgo County Appraisal District record. If you buy a new building that was assessed partly as land last year, budget taxes on your purchase price, since the next bill will reflect the finished building.
Valley buildings face wind, hail and heavy rain from Gulf storms, and some streets flood. Insurers price fourplexes as small commercial-style risks in some cases, so get a quote early. Check the FEMA flood map and ask the seller about any past water damage.
Summer heat means air conditioning is essential. Budget for HVAC replacements on older buildings; a fourplex can have four separate systems.
Valley builders sometimes sell several fourplexes in the same development. Each can be financed with its own DSCR loan, or, once you own five or more rentals, combined in a blanket portfolio loan. A new building that is still leasing up may need a short-term bridge loan first, then a DSCR refinance once units are rented.
Our DSCR loans offer 30-year terms, purchase up to 80% LTV, cash-out up to 75% LTV and a 620 minimum credit score. Combined rent from all legal units counts, using leases or market rent. Sub-1.0 DSCR programs exist for buildings that fall a little short.
Send the address, price and unit rents through the form below, or call (877) 298-1001. We will show the ratio at a few loan amounts using a realistic tax figure.
Yes. Fourplexes qualify on the combined rent of all four units, with no W-2s or tax returns.
Yes, if there are leases or the appraiser supports market rent.
Investors do not get the homestead exemption, and a new building may have been assessed partly as land. Budget on the full rate and your price.
$150,000, with no stated maximum.
Yes. Each can have its own DSCR loan, or five or more can be combined in a blanket.
A short-term bridge loan can fund the purchase while you lease up, followed by a DSCR refinance.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.