Miami's small multi-unit buildings are some of the hardest-working rentals in the city: two-story duplexes and fourplexes in Little Havana, Shenandoah and Allapattah, many built from the 1920s to the 1960s, renting steadily to people who want to live close to Downtown, Brickell and the Health District.
In short: LendingStreet finances Miami-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. In Miami, the tax bill after purchase and the insurance quote usually decide how much leverage a building can carry.
Little Havana has one of the densest concentrations of small multi-unit buildings in the city, from 1920s duplexes to 1950s fourplexes with exterior stairs and courtyards. Shenandoah and Silver Bluff to the south add duplexes on tree-lined streets. Allapattah, near the Health District, has older duplexes and small buildings close to Jackson Memorial and the University of Miami's medical campus.
Little River, Little Haiti and parts of Edgewater have more small multi-unit stock, and Hialeah, the county's second-largest city, is full of duplexes and homes with added units. Westchester and Miami Springs add a few side-by-side duplexes.
Construction varies. Many older buildings are concrete block, which holds up well in storms, while some 1920s buildings are wood frame. Concrete block with an updated roof and impact windows is usually the easiest profile to insure.
The City of Miami's Miami 21 code assigns each lot a transect zone. Some T3 sub-zones allow only single-family homes, others allow duplexes, and T4 and higher zones allow more units. Many older Little Havana and Allapattah buildings predate the code and are legal nonconforming uses.
Confirm the legal unit count with the city and the property's certificate of use. Hialeah and other municipalities have their own codes, and illegally added efficiencies are common across the county. Lenders count legal units only.
This example is illustrative and not a quote. An investor buys a 1950s fourplex in Little Havana for $1,150,000, with four units renting at $2,300, or $9,200 a month. The seller's tax bill is about $1,350 a month. After the sale, the investor budgets $1,900 a month for taxes at the reassessed value. Insurance is quoted at $950 a month.
At 75% LTV the loan is $862,500 and estimated principal and interest is about $6,031. On the seller's tax bill, DSCR would be about 1.10x. On the realistic tax figure it is about 1.04x. If insurance renews at $1,250, DSCR falls to about 1.00x. At 70% LTV, the $805,000 loan brings DSCR back to about 1.05x even with the higher insurance.
| Item | 75%, seller's taxes | 75%, reset taxes | 75%, higher insurance | 70%, higher insurance |
|---|---|---|---|---|
| Loan amount | $862,500 | $862,500 | $862,500 | $805,000 |
| Estimated principal and interest | $6,031 | $6,031 | $6,031 | $5,629 |
| Taxes | $1,350 | $1,900 | $1,900 | $1,900 |
| Insurance | $950 | $950 | $1,250 | $1,250 |
| Total payment | $8,331 | $8,881 | $9,181 | $8,779 |
| DSCR at $9,200 rent | About 1.10x | About 1.04x | About 1.00x | About 1.05x |
Florida's homestead exemption and Save Our Homes cap apply only to a primary residence. If the seller lived in one of the units, part of the building may have carried a homestead exemption, and even without one, the assessed value resets to market after a sale. Budget on the reassessed value, not the seller's bill.
Miami-Dade's deed stamp tax, including a surtax that can apply to properties other than single-family homes, and Florida's taxes on new mortgages add to closing costs.
Insurance is the other big line. Carriers look at roof age and type, wind mitigation features such as impact windows and shutters, wiring, plumbing and the building's flood zone. Many older buildings in Little Havana and Allapattah have flat or low-slope roofs that insurers watch closely. A wind mitigation inspection can lower the premium.
Get a quote before you set your offer. A building that clears 1.0x on last year's premium may not on this year's.
Demand for small units close to Downtown, Brickell and the Health District has been strong, and many Little Havana and Allapattah buildings stay full. Tenants include medical workers, service and hospitality employees and young professionals. Long-time tenants may pay well below market, and the ratio is based on current leases unless units are vacant.
Use current leases or a market rent estimate for each unit. If you plan to raise rents, follow Florida's notice rules and lease terms.
Florida's landlord-tenant law sets the rules on notice, deposits and lease termination statewide, and the state has limited how far counties and cities can add their own landlord-tenant rules. Read the current statute and your existing leases before you plan increases or turnovers, especially if you are counting on higher rents for a refinance.
Parking, laundry and outdoor space also move rents in these neighborhoods. A fourplex with off-street parking for every unit can rent noticeably better than one without, and appraisers will look at those features when they set market rent.
A duplex at today's prices often has a harder time reaching 1.0x than a fourplex, because two rents carry a similar tax and insurance burden. Lower leverage or a sub-1.0 DSCR program can help. Buildings with five to eight units are still residential for our programs, with max LTV that can be lower; see our Miami 5-8 unit page. If you own five or more rentals, a blanket portfolio loan can combine them.
Our DSCR loans offer 30-year terms, purchase up to 80% LTV, cash-out up to 75% LTV and a 620 minimum credit score.
Send the address, price, unit rents and insurance quote through the form below, or call (877) 298-1001. We will show the ratio at a few loan amounts using a realistic post-sale tax figure. If you already own the building and want to refinance, include the current tax bill and policy, and we will check whether a cash-out or rate-and-term refinance fits.
Yes. Fourplexes qualify on the combined rent of all four units, with no W-2s or tax returns.
The assessed value resets after a sale, and homestead benefits do not transfer to investors. Budget on the reassessed value.
Insurance is part of the payment. Higher premiums lower the ratio, so get a quote before setting your offer.
Usually not. Lenders count legal units only.
$150,000, with no stated maximum.
Lower leverage or a sub-1.0 DSCR program may work.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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