North Dakota's small multifamily market is compact: fourplexes and duplexes near NDSU in Fargo and UND in Grand Forks, older buildings in Bismarck and Minot, and energy-cycle rentals in the Bakken. A DSCR loan qualifies them on combined rent.
In short: You can finance a North Dakota duplex, triplex or fourplex with a LendingStreet DSCR loan, sized on the building's combined rent. Leverage reaches 80% LTV on a purchase and 75% on a cash-out refinance, the minimum credit score is 620, the standard minimum DSCR is 1.0x and no tax returns are required. In North Dakota, Fargo-area special assessments, flood zones and heating costs are the items to check before you offer.
The state built a lot of small apartment buildings, and the fourplex is a common rental format in Fargo, Grand Forks and Bismarck. Prices are moderate, tenant demand comes from universities, health systems, agriculture and government, and many buildings cover their payment at standard leverage.
Western North Dakota is a different story. Williston, Dickinson and Watford City rents move with oil activity, and vacancy can swing quickly when drilling slows. Investors there size deals conservatively. Minot draws tenants from the air base, which keeps demand steadier than in the oil towns.
Bismarck's state government and health care employers keep vacancy relatively steady, and Mandan across the river offers lower prices. West Fargo has added newer fourplexes in recent years, often with special assessments for new streets and utilities.
Cass, Grand Forks, Burleigh and Ward counties hold most of the state's small multifamily.
| Area | Typical 2-4 unit stock | What to watch |
|---|---|---|
| Fargo and West Fargo | Fourplexes and duplexes near NDSU and newer suburban builds | Special assessments; flood zones |
| Grand Forks | Student fourplexes near UND | Summer vacancy; Red River flooding history |
| Bismarck and Mandan | Older duplexes and fourplexes near state offices | Steady government tenants |
| Minot | Duplexes renting to Minot Air Force Base households | Military turnover |
| Williston and Dickinson | Newer multifamily built during oil booms | Rents follow energy cycles |
A DSCR loan ignores your personal income and looks at the building. The combined rent of all units, from leases or the appraisal's rent schedule, is divided by the monthly payment including taxes, insurance and dues. Standard programs want 1.0x or better; sub-1.0 programs are available for some buildings.
Leverage tops out at 80% LTV on a purchase and 75% on a cash-out refinance, with rate-and-term up to 80% on some programs. The minimum credit score is 620, loans start at $150,000, 30-year terms are available and LLC ownership is standard. Our investor loans are business-purpose loans on non-owner-occupied property, so the borrower does not occupy any unit.
North Dakota does not charge a real estate transfer tax, which keeps closing costs low. Property taxes are moderate, but Fargo and West Fargo are known for special assessments that pay for streets, water and flood protection. These can add a significant amount to the yearly bill, so ask the city for the special assessment balance and annual installment on the address.
North Dakota is a non-disclosure state, so sale prices are not public and appraisers rely on MLS data. Insurance is shaped by hail, wind and winter storms, and properties near the Red River or other floodplains may need flood coverage.
Fargo's special assessments are often paid in installments over many years. When you buy, find out whether the seller will pay off any balance or whether it transfers with the property.
This example is illustrative and not a quote. An investor buys a fourplex in Fargo for $480,000 with 20% down, so the loan is $384,000. The four units rent for $1,050, $1,050, $1,050, $1,050 a month, $4,200 in total. Taxes and insurance run about $770 a month.
On a 30-year amortization, estimated principal and interest is about $2,685, for a total payment of about $3,455. Dividing $4,200 of rent by that payment gives a DSCR of about 1.22x, above the 1.0x standard minimum. The tax line includes a yearly special assessment installment, which is why it is higher than the base levy alone would suggest.
| Item | Amount |
|---|---|
| Purchase price | $480,000 |
| Loan at 80% LTV | $384,000 |
| Down payment | $96,000 |
| Combined rent (4 units) | $4,200 a month |
| Estimated principal and interest | About $2,685 |
| Taxes and insurance | $770 |
| Total monthly payment | About $3,455 |
| DSCR | About 1.22x |
North Dakota landlord-tenant law sets deposit limits and notice rules statewide, and the state has no rent control. Fargo and other cities enforce housing codes, and some require rental inspections, so confirm requirements with the city.
Heating is a major cost. Find out whether each unit has its own furnace and meter or whether the owner pays heat, and check the age of the boiler or furnaces. Ask about basement water history and sump pumps in flood-prone areas, since the Red River has a long flood record.
Grand Forks rebuilt much of its housing after the 1997 flood, so building age varies block by block. Ask about the flood history of the specific address and whether it sits behind the city's levee system.
Each added unit spreads the price and fixed costs across more rent, which usually helps coverage, but it also adds turnover, repairs and management. A duplex is easiest to resell to a wide pool of buyers; a fourplex often has the strongest ratio. Buildings of 5 to 8 units can still use residential DSCR programs, though max LTV varies by program; see our North Dakota 5-8 unit page. Nine or more units is commercial and covered on our multifamily pages.
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.
Have these ready and you can request terms with confidence.
Yes. Special assessment installments are part of the property tax bill, so they are included in the monthly payment used to calculate the ratio.
No. North Dakota does not charge a real estate transfer tax. Title, recording and lender costs still apply.
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.
Yes, if the rent supports the payment. Rents there move with oil activity, so expect the appraiser's market rent estimate to reflect current conditions.
Usually not, but hail and winter storms affect premiums and deductibles. Get a current quote on the address.
No. DSCR loans qualify on the property's rent, with no W-2s, pay stubs or tax returns. Credit, reserves and the property itself are what underwriting reviews.
Some programs allow it, usually with stronger credit or more reserves. Putting more down is the other common fix, since it lowers the payment the rent has to cover.
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.