New York's 2-4 unit market runs from Buffalo's upper-and-lower doubles and Rochester's two-families to brick three-families in Queens, Brooklyn and the Bronx. A DSCR loan finances them on combined rent, and the state's recording taxes and tenant rules shape the rest of the deal.
In short: Yes, LendingStreet finances duplexes, triplexes and fourplexes across New York with DSCR loans that qualify on the combined rent of all units. Purchases go up to 80% LTV and cash-out refinances up to 75%, with a standard 1.0x minimum DSCR, a 620 minimum credit score and no W-2s or tax returns. In New York, the mortgage recording tax, the local tenant rules and the property tax bill are the items to confirm before you offer.
Upstate cities have some of the best rent-to-price ratios in the Northeast. Buffalo, Rochester, Syracuse, Albany and Troy are full of two-family houses built a century ago, and many still trade at prices where the rent covers a DSCR payment with room to spare.
In New York City the math is different. Two- and three-family houses in Queens, Brooklyn and the Bronx cost far more, and coverage at 80% LTV is rare without strong rents or a larger down payment. Investors still buy them for long-term appreciation and steady demand. Across the state, buildings with fewer than six units sit outside New York City's rent stabilization system in most cases, which is part of their appeal.
Upstate cities offer stronger cash flow; New York City offers depth of demand at much higher prices.
| Area | Typical 2-4 unit stock | What to watch |
|---|---|---|
| Buffalo | Upper-and-lower two-family doubles on the West Side and in North Buffalo | Older systems; strong cash flow |
| Rochester | Two-families and converted houses | City certificate of occupancy for rentals |
| Syracuse, Albany and Troy | Frame two- and three-families near universities and downtowns | Snow, heating and lead paint |
| Queens and Brooklyn | Brick and frame two- and three-families | High prices; HPD registration |
| The Bronx and Staten Island | Two- and three-family houses | Coverage depends on down payment |
The loan qualifies on the debt service coverage ratio: the combined monthly rent of every unit divided by the full monthly payment, including principal, interest, taxes, insurance and any association dues. The standard minimum is 1.0x, and sub-1.0 programs exist for buildings that fall a little short.
Purchases go up to 80% LTV, cash-out refinances up to 75% and rate-and-term refinances up to 80% on some programs. Loans start at $150,000 with no stated maximum, 30-year terms are available, the minimum credit score is 620 and no W-2s or tax returns are needed. LLC borrowers are standard. Our investor loans are business-purpose loans on non-owner-occupied property, so every unit is a rental.
New York charges a mortgage recording tax when the mortgage is recorded, and the amount is higher in New York City and some downstate counties than upstate. The state also charges a real estate transfer tax, and New York City adds its own transfer tax. On a refinance the recording tax can be a meaningful cost, so ask your title company for an estimate early.
Property taxes vary widely. Upstate city bills are often high relative to value, and some cities have reassessed recently. In New York City, small residential buildings fall in a tax class with limits on assessment growth. Use the current bill for the address, not an estimate.
This example is illustrative and not a quote. An investor buys a two-family double in Buffalo for $260,000 with 20% down, so the loan is $208,000. The two units rent for $1,250, $1,150 a month, $2,400 in total. Taxes and insurance run about $600 a month.
On a 30-year amortization, estimated principal and interest is about $1,454, for a total payment of about $2,054. Dividing $2,400 of rent by that payment gives a DSCR of about 1.17x, above the 1.0x standard minimum. Upstate taxes are high relative to value, so the tax line here is nearly a third of the payment. The same building with a lower bill would show stronger coverage.
| Item | Amount |
|---|---|
| Purchase price | $260,000 |
| Loan at 80% LTV | $208,000 |
| Down payment | $52,000 |
| Combined rent (2 units) | $2,400 a month |
| Estimated principal and interest | About $1,454 |
| Taxes and insurance | $600 |
| Total monthly payment | About $2,054 |
| DSCR | About 1.17x |
New York's 2019 tenant protection law changed security deposit limits, late fees and eviction notice periods statewide. The 2024 Good Cause Eviction law applies in New York City and in other municipalities that opt in, with exemptions that can include some smaller landlords. Check whether it applies to your building and portfolio.
In New York City, buildings with three or more units, and one- and two-family homes where the owner does not live, must register with HPD each year, and lead paint rules for older buildings are strict. Rochester requires a certificate of occupancy for rentals and Buffalo maintains a rental registry, so confirm local requirements before closing.
Upstate buildings often have one boiler for both units and a basement shared by tenants. Budget for heating and for lead-safe repainting on turnover, both of which are routine in a century-old double.
A two-unit building is the simplest to buy, insure and sell. Three and four units usually improve the ratio because one roof, one tax bill and one insurance policy cover more rent. Beyond four units, residential DSCR programs still reach 8 units, with max LTV that varies by program, and our New York 5-8 unit page covers those buildings. At 9 units and up the loan becomes commercial.
A 2-4 unit you already own can be refinanced on its rent, either to lower the payment structure or to take cash out for the next purchase. Cash-out goes up to 75% LTV, rate-and-term up to 80% on some programs, and seasoning requirements for cash-out vary by program.
Gathering these early keeps the appraisal and underwriting moving.
Yes. New York charges a mortgage recording tax when the mortgage is recorded, and it is higher in New York City. Your title company will estimate it.
In most cases, no. Rent stabilization generally covers buildings with six or more units built before 1974, though there are exceptions. Check the building's registration history.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so every unit must be rented and you cannot occupy any of them. If you plan to live in the building, a consumer mortgage is the right product instead.
Occupied units use their leases, and empty units usually use the appraiser's market rent estimate from the rent schedule. Treatment varies by program, so tell us about any vacancy up front.
If you do not live there, generally yes. HPD registration covers buildings with three or more units and one- and two-family homes where the owner does not live.
Yes, if it is legally three units. Coverage at 80% LTV is tight at New York City prices, so expect to put more down.
No. LLCs are standard, and many investors hold each building in its own entity. Expect to sign for the loan personally as well, and to provide the entity documents.
Purchases go up to 80% LTV, so at least 20% down, with loans from $150,000. A low DSCR or high taxes can require more, and you will also need funds for closing costs and reserves.
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