Most of the Valley is single-family, which makes Phoenix's small multifamily stock valuable. Concrete-block duplexes and fourplexes built from the 1950s through the 1980s cluster in Central Phoenix, Sunnyslope, Maryvale and around the old cores of Tempe and Mesa, and they rent steadily to people who want a yard-free, lower-cost place close to work.
In short: LendingStreet finances Phoenix duplexes, 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, the standard minimum DSCR is 1.0x and LLC borrowers are standard. Low Arizona property taxes help the ratio here, but prices have risen faster than rents, so many Phoenix 2-4 unit files land near 75% LTV.
Central Phoenix has the deepest supply: duplexes and fourplexes on side streets in Encanto, Melrose, North Central, Coronado, Garfield and the blocks near Grand Avenue, many built of slump block or brick in the postwar decades. Sunnyslope, north of the Arizona Canal, has a large stock of older duplexes and small courtyard buildings. Maryvale and west Phoenix have fourplexes along collector streets.
Outside the city, Tempe's neighborhoods near Arizona State University and Mesa's older central areas also hold small multifamily. Many are single-story with carports, which tenants like and appraisers recognize.
Phoenix zoning districts such as R-2, R-3 and R-4 allow multiple units on a lot, while single-family districts generally do not. In 2024 Arizona adopted laws requiring larger cities to allow accessory dwelling units on single-family lots and, in certain areas near downtowns, duplexes, triplexes and fourplexes. How each city implements those rules is still developing.
For a purchase, confirm the zoning, that the existing unit count is legal and that every unit has proper permits. A converted garage or a casita that was never permitted may not count toward rent or value.
This example is illustrative and not a quote. An investor buys a block fourplex near Central Phoenix for $820,000, with four units at $1,350 each, or $5,400 a month. At 75% LTV the loan is $615,000 and estimated principal and interest on a 30-year loan is about $4,279.
Property taxes are budgeted at $260 a month and insurance at $300, for a total payment of about $4,839. DSCR is about 1.12x.
A Sunnyslope duplex bought for $480,000 with two units at $1,550 has a loan of $360,000, a total payment near $2,835 and DSCR about 1.09x. The low tax bill is what keeps both above 1.0x.
| Item | Central Phoenix fourplex | Sunnyslope duplex |
|---|---|---|
| Purchase price | $820,000 | $480,000 |
| Loan amount (75% LTV) | $615,000 | $360,000 |
| Combined monthly rent | $5,400 | $3,100 |
| Estimated principal and interest | $4,279 | $2,505 |
| Taxes and insurance | $560 | $330 |
| Total monthly payment | $4,839 | $2,835 |
| DSCR | About 1.12x | About 1.09x |
Phoenix prices climbed quickly from the mid-2010s, and rents rose too, but more slowly in recent years as new apartments opened across the Valley. The result is that many 2-4 unit buildings cash flow at 75% LTV but not at 80%. Test the ratio at both levels before you set your offer.
Tenants include hospital and service workers, ASU students and staff, and people who work downtown or along the Interstate 17 and Grand Avenue corridors. Use signed leases or an appraiser's rent schedule specific to the property.
Arizona property taxes are low compared with most states, which helps DSCR on small multifamily. Rental properties are classified differently from owner-occupied homes, so ask for the tax bill that reflects rental use. Arizona requires owners to register residential rental property with the county assessor.
Arizona also does not charge a real estate transfer tax, which keeps closing costs down.
Most older Phoenix duplexes and fourplexes have flat or low-slope roofs that wear under intense sun, and air conditioning systems that run hard for months. Insurers and appraisers pay attention to roof age and HVAC condition, and so do tenants.
Budget for replacements on a predictable cycle and keep records. Recent roof and AC work helps on insurance and on the appraisal, and it reduces summer vacancies caused by breakdowns.
If you already own a duplex or fourplex, a rate-and-term refinance can go up to 80% LTV on some programs and cash-out up to 75% LTV. Seasoning rules vary by program, and the rent must clear the minimum at the new payment.
Many Valley investors who bought small multifamily years ago now have enough equity for cash-out. Buildings of five to eight units are covered on our Phoenix 5-8 unit page.
A lot of the Valley's older duplexes and fourplexes have had the same owner for decades and come to market with original kitchens, old plumbing and tired landscaping. Investors often buy them with cash or a short-term bridge or fix and flip loan, renovate unit by unit, raise rents to market and then refinance into a DSCR loan on the new value.
If you plan that path, keep permits, receipts and new leases in order. The appraiser will compare your finished building with recent small multifamily sales nearby, and the refinance amount depends on that value and on the rent the units actually command. Seasoning rules for cash-out vary by program, so ask early how soon after the work you can refinance.
Send the address, price or value, unit count, leases, tax bill and insurance quote. The financing team will run the ratio at different loan amounts and come back with options.
Our investor loans are business-purpose loans on non-owner-occupied property. Call (877) 298-1001 or use the form below to get a quote.
Yes. The loan qualifies on the combined rent of all four units, with purchases up to 80% LTV and a 1.0x standard minimum DSCR.
Prices rose faster than rents, so the payment at 80% can outrun the rent. Low Arizona taxes help, but leverage often lands near 75%.
Only if it is a legal, permitted unit. Unpermitted casitas or garage conversions usually do not count.
It requires larger cities to allow more housing types in some areas. Check how Phoenix applies it to your lot before planning added units.
No. They are low compared with most states, which helps the ratio on small multifamily.
Yes, as residential DSCR loans, though max LTV can be lower. See our Phoenix 5-8 unit page.
No. The loan qualifies on the property's rent, and LLC borrowers are standard.
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.