Palm Bay has an unusual amount of duplex housing for a Florida suburb. Side-by-side block duplexes were built across Port Malabar from the 1980s on, and builders are still adding new ones on vacant lots. Melbourne, next door, supplies the older fourplexes and small buildings.
In short: LendingStreet finances Palm Bay duplexes and Brevard County triplexes and fourplexes with DSCR loans that qualify on the combined rent of all units, with no W-2s or tax returns. Loans start at $150,000, purchases go up to 80% LTV, cash-out refinances up to 75% LTV, and the standard minimum DSCR is 1.0x, with LLC borrowers allowed. Insurance, septic and roof age are the items that most often change the numbers here.
Most Palm Bay 2-4 unit properties are single-story, side-by-side concrete block duplexes, each unit with two or three bedrooms and often a one-car garage. They are spread across the older northeast neighborhoods and the large Port Malabar grid, sometimes several on one street. Newer duplexes on infill lots have modern construction and newer roofs.
Melbourne has more variety: older fourplexes and small buildings near downtown Melbourne and the Eau Gallie Arts District, units near Florida Tech, and 1970s and 1980s fourplexes along the US 1 and Wickham Road corridors. West Melbourne adds newer townhome-style duplexes.
| Type | Where | What to check |
|---|---|---|
| 1980s-2000s block duplex | Northeast Palm Bay, Port Malabar | Roof age, septic, separate meters |
| New-build duplex | Infill lots in Palm Bay | First-year tax bill, builder warranty |
| Older fourplex or small building | Downtown Melbourne, Eau Gallie | Wiring, plumbing, flood zone |
| Student-area units | Near Florida Tech | Lease terms, turnover |
Palm Bay and Melbourne each set which zoning districts allow two-family and multi-family housing. Most Port Malabar duplexes were built as duplexes, but conversions and added units do occur, so confirm the recognized unit count with the city before you buy. The appraisal and the loan are generally based on legal units only.
Many duplexes have been owned by small investors for years, and some have older leases or month-to-month tenants. Get copies of every lease and ledger.
This example is illustrative and not a quote. An investor buys a block duplex in Palm Bay for $380,000, with two units renting for $1,550 each, or $3,100 a month. Taxes without a homestead exemption are about $570 a month and insurance is $240. At 75% LTV the loan is $285,000, estimated principal and interest is about $1,993, the total payment is about $2,803 and DSCR is about 1.11x.
A Melbourne fourplex bought for $720,000 with four units at $1,450 each, $5,800 a month, would at 75% LTV carry a payment of about $5,276 with taxes and insurance, for a DSCR of about 1.10x.
| Item | Palm Bay duplex | Melbourne fourplex |
|---|---|---|
| Purchase price | $380,000 | $720,000 |
| Loan at 75% LTV | $285,000 | $540,000 |
| Estimated principal and interest | $1,993 | $3,776 |
| Taxes | $570 | $1,080 |
| Insurance | $240 | $420 |
| Total monthly payment | $2,803 | $5,276 |
| Combined rent | $3,100 | $5,800 |
| DSCR | 1.11x | 1.10x |
Many Palm Bay duplexes share one septic system between the two units, and some are on private wells. A septic problem affects both units at once. Include the system in your inspection and ask for pumping records.
Water and electric are often separately metered on newer duplexes, while older ones may share a water meter. If the owner pays water and sewer, budget for it, since it reduces your cash flow even though it is not part of the DSCR payment.
Hurricane wind coverage is the main insurance cost on Brevard County rentals. A duplex has one roof over two units, and insurers will look closely at its age and condition. Concrete block construction is standard here, and a wind mitigation inspection documenting straps, roof shape and opening protection can lower premiums.
Properties near Turkey Creek, the Indian River Lagoon and low-lying parts of Melbourne may be in flood zones. Get the flood determination with your insurance quote.
Duplex tenants in Palm Bay are often working families and aerospace, manufacturing and healthcare employees who want a garage and a yard at a lower rent than a single-family home. Patrick Space Force Base personnel and contractors add demand, and Florida Tech supports rentals in Melbourne.
Rents have historically been steady, but newer duplexes and single-family rentals compete for the same tenants. Use leases or a market rent estimate for each unit.
Investors do not receive the homestead exemption, and non-homestead property has a 10% annual cap on assessed value increases for non-school taxes, which resets on sale. New-build duplexes may show only land value on the first tax bill, so budget on the full value. Florida also charges documentary stamp tax on deeds and notes and an intangible tax on new mortgages.
Florida preempts local rent control, and the state landlord-tenant statute sets notice and deposit rules.
Many Palm Bay duplexes have been held by the same small investor for ten or twenty years. Rents may be below market, leases may have lapsed into month-to-month terms, and repairs may have been handled informally. That can be an opportunity, but it also means the DSCR on day one is based on what the units actually rent for today.
Ask for current leases, rent ledgers and deposit records, and walk every unit. If the rents are well below market, options include a larger down payment, a sub-1.0 DSCR program where it fits, or a short bridge loan while you renew leases and complete repairs before a DSCR refinance. Florida law sets notice periods for ending month-to-month tenancies and changing terms.
Owners with five or more Brevard rentals can combine them in a blanket portfolio loan, and small buildings of 5 to 8 units are still residential for our programs, though maximum LTV can be lower and varies by program. If a duplex needs a new roof or septic before it can be insured or leased, a fix and flip or bridge loan can fund the work first.
Send the purchase contract or mortgage statement, rent roll and leases, insurance and wind mitigation reports, septic records and LLC documents with the form below, or call (877) 298-1001.
Yes. DSCR on a 2-4 unit property uses the combined rent of all legal units.
It is reviewed as part of the property condition. Have it inspected, since a failure affects both units.
Purchases go up to 80% LTV, but Florida insurance and taxes mean many investors put down 25% or more so the property clears 1.0x DSCR.
Yes. Budget taxes on the full completed value, since the first bill may show only land.
It can lower insurance premiums by documenting wind-resistant features, which improves DSCR.
Yes. LLC borrowers are standard, and you sign for the loan personally where the program requires it.
DSCR is usually based on current leases, so low rents can make the ratio tight. A larger down payment, a sub-1.0 DSCR program or a short bridge loan while you renew leases are common approaches.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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