Since 2021, most residential lots in Portland can hold up to four homes, and small developers have been building new duplexes, triplexes and fourplexes on lots that once held a single house. Add the older plexes on the inner Eastside and the 1960s and 1970s fourplexes in East Portland, and the city has one of the more varied small multifamily markets on the West Coast.
In short: LendingStreet finances Portland 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. Portland prices are high relative to rents and Oregon caps annual rent increases on older units, so many Portland 2-4 unit loans work at 65% to 70% LTV rather than 80%.
Older duplexes and fourplexes are scattered through inner Southeast and Northeast neighborhoods like Buckman, Richmond, Sunnyside, Hosford-Abernethy, King and Eliot, many in converted houses or small 1920s buildings. East Portland, including Montavilla, Hazelwood, Mill Park and Powellhurst-Gilbert, has more purpose-built fourplexes from the 1960s and 1970s with surface parking.
Newer middle housing is concentrated where land values and lot sizes made it pencil: parts of North and Northeast Portland, outer Southeast and some West Side neighborhoods. Buildings of five to eight units are covered on our Portland, Oregon 5-8 unit page.
Portland's Residential Infill Project, which took effect in 2021, allows up to four units on most lots in single-dwelling zones, and up to six when some units are affordable. Oregon's statewide middle-housing law requires larger cities to allow similar housing types. Size limits, setbacks and design rules still apply.
For a purchase, confirm each unit has permits and a certificate of occupancy. New construction should have final inspections complete. Older buildings with an unpermitted basement or attic unit may not get credit for that unit's rent.
This example is illustrative and not a quote. An investor buys a fourplex in inner Southeast Portland for $1,050,000, with four units at $1,650, or $6,600 a month. Taxes are $780 a month and insurance $320.
At 75% LTV the loan is $787,500, estimated principal and interest on a 30-year loan is about $5,479, the total payment is about $6,579 and DSCR about 1.00x, right at the line. At 70% LTV the loan is $735,000, the payment about $6,214 and DSCR about 1.06x.
A Montavilla duplex at $690,000 renting for $4,000 needs lower leverage: at 65% LTV the loan is $448,500, the total payment about $3,761 and DSCR about 1.06x.
| Item | Fourplex at 75% | Fourplex at 70% | Montavilla duplex at 65% |
|---|---|---|---|
| Loan amount | $787,500 | $735,000 | $448,500 |
| Combined monthly rent | $6,600 | $6,600 | $4,000 |
| Estimated principal and interest | $5,479 | $5,114 | $3,121 |
| Taxes and insurance | $1,100 | $1,100 | $640 |
| Total monthly payment | $6,579 | $6,214 | $3,761 |
| DSCR | About 1.00x | About 1.06x | About 1.06x |
Oregon limits annual rent increases on most units older than 15 years, using an inflation-based formula with a hard cap. Newer buildings are exempt until they reach 15 years. Portland adds relocation assistance requirements in certain cases, plus rules on screening applicants and on security deposits.
For DSCR, that means the current leases are what count, and rent growth on older buildings will be gradual. A newer middle-housing building has more rent flexibility for now, which some investors weigh when choosing between old and new.
Under Measure 50, assessed value on existing property grows slowly and a sale does not reset it, so older plexes often carry modest tax bills relative to price. New construction is added to the rolls using a ratio applied to its market value, which can produce a higher bill relative to price than an older building next door.
Get the actual tax bill, or the county's estimate for a new build, before you finalize your numbers.
Tenants include hospital and university staff at OHSU and Portland State, tech and creative workers, service workers and families who prefer a small building with a yard to a large complex. Inner Eastside units close to transit and restaurants tend to rent fastest.
Use signed leases or an appraiser's rent schedule specific to the property. Rents vary with parking, laundry and whether utilities are included. New middle-housing units often have no off-street parking, which renters near transit accept but suburban commuters may not.
Portland sits in an earthquake-prone region, and older wood-frame and unreinforced buildings may carry higher insurance costs. Many investors add seismic retrofits like foundation bolting. Older plexes also bring aging plumbing, electrical and oil tanks that should be checked in inspection.
Keep records of upgrades. They help with insurance and with the appraisal. Many older Portland homes once heated with oil, and an abandoned underground tank that was never decommissioned can surface during a sale or refinance, so ask for documentation.
Rate-and-term refinances go up to 80% LTV on some programs and cash-out up to 75% LTV. In Portland, the rent at the new payment usually limits leverage before the program maximum does. Seasoning rules vary by program.
Small builders who completed middle-housing projects sometimes refinance their construction loans into DSCR loans once units are leased and certificates of occupancy are issued.
Send the address, price or value, unit count, permits or certificates of occupancy, leases, tax bill and insurance quote. The financing team will run the ratio at a few loan amounts.
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, once the units are complete, permitted and leased or appraised at market rent. The loan qualifies on combined rent.
Prices are high relative to rents, so the payment at higher leverage can exceed the rent. Lower leverage or a sub-1.0 program are common fixes.
Most units are exempt until the building is 15 years old. Older units are subject to the annual cap.
No. Measure 50 limits assessed value growth and a sale does not reset it, though new construction is assessed differently.
Most residential lots now allow up to four units under the Residential Infill Project, subject to size and design rules. See our construction pages for build financing.
Yes, as residential DSCR loans, though max LTV can be lower. See our Portland 5-8 unit page.
No. The loan qualifies on the property's rent, and LLC borrowers are standard.
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