Raleigh's 2-4 unit market is changing in real time. Older duplexes near NC State and in Southeast Raleigh still trade, but the city's recent zoning changes have also produced a wave of new infill duplexes and townhome-style buildings inside the Beltline, at very different prices.
In short: LendingStreet finances Raleigh duplexes, triplexes and fourplexes, new and old, with DSCR loans that qualify on the combined rent of every unit. Purchases go up to 80% LTV and cash-out refinances up to 75%, with a 620 minimum credit score, no W-2s or tax returns and LLC borrowers standard. Loans start at $150,000 with no stated maximum.
Raleigh adopted a series of zoning changes beginning in 2021, often called the missing middle text changes, that opened more residential districts to duplexes, triplexes, townhomes and small apartment buildings. As a result, builders have been replacing small older houses inside the Beltline with new two-unit and multi-unit buildings, especially in neighborhoods near downtown and NC State.
The rules depend on the zoning district, lot size and any overlay districts, and some historic neighborhoods have additional review. Check the parcel's district and the current Unified Development Ordinance before you plan a conversion or new build.
For investors, the zoning changes cut both ways. They create new 2-4 unit supply to buy, but they also mean more new units competing for tenants in the same neighborhoods. Check how many similar new duplexes have leased nearby, and at what rents, before you set your own rent estimate.
Older duplexes are common near NC State (around Hillsborough Street, Method and the Wade Avenue corridor), in Southeast Raleigh and in pockets of North Raleigh. Garner, Knightdale and Wendell have side-by-side duplexes and some fourplexes at lower prices. New infill duplexes are appearing in neighborhoods such as Mordecai, Glenwood-Brooklyn, the edges of Boylan Heights and the streets east of downtown.
Rents are supported by NC State, WakeMed, Rex, state government offices downtown and the Research Triangle Park employers, a short drive west. Tenants in new infill duplexes are often young professionals and small families who want to live near downtown without the price of a single-family home there.
| Area | Common building | Price level |
|---|---|---|
| Inside the Beltline infill | New side-by-side or stacked duplexes | High |
| Near NC State | Older duplexes, small fourplexes | Moderate to high |
| Southeast Raleigh | Older duplexes | Moderate |
| Garner, Knightdale, Wendell | Side-by-side duplexes, fourplexes | Lower |
A 2-4 unit DSCR loan adds rent from every unit and compares it with the full payment: principal and interest, taxes, insurance and any HOA dues. The standard minimum is 1.0x, with sub-1.0 programs for some files. Vacant or newly built units are usually counted at the appraiser's market rent. No unit can be owner-occupied; our investor loans are business-purpose loans on non-owner-occupied property.
For a brand-new duplex, the appraiser's rent schedule is usually the starting figure.
This example is illustrative and not a quote. An investor buys a newly built side-by-side duplex near downtown Raleigh for $800,000. Each three-bedroom unit rents for $2,600, or $5,200 combined. Taxes on the purchase price are budgeted at $640 a month and insurance at $180.
At 75% LTV the loan is $600,000, estimated principal and interest is about $4,298 and the total payment is about $5,118, for a DSCR of about 1.02x. At 70% LTV the loan is $560,000, the payment about $4,832 and DSCR about 1.08x.
New construction keeps insurance and repairs low, but the price is high relative to rent, so the ratio is close to the line at full leverage.
| Item | Infill, 75% | Infill, 70% | Garner, 80% |
|---|---|---|---|
| Purchase price | $800,000 | $800,000 | $390,000 |
| Loan amount | $600,000 | $560,000 | $312,000 |
| Principal and interest | $4,298 | $4,012 | $2,235 |
| Taxes and insurance | $820 | $820 | $430 |
| Combined rent | $5,200 | $5,200 | $2,900 |
| DSCR | About 1.02x | About 1.08x | About 1.09x |
An older side-by-side duplex in Garner bought for $390,000, with each two-bedroom unit renting for $1,450, supports an 80% LTV loan of $312,000. Estimated principal and interest is about $2,235, the total payment about $2,665 and DSCR about 1.09x.
The older building costs less and cash flows better, but it needs more maintenance and attracts a different tenant. Many Raleigh investors own both kinds.
Garner, Knightdale and Wendell sit outside the city's own tax rate, though each town adds its own municipal rate to the county rate. Older duplexes there also tend to sit outside HOAs, which keeps the payment simpler.
Wake County's reappraisal effective January 1, 2024 raised values across the county, and many bills rose even after rates were adjusted. Raleigh adds a city rate on top of the county's, and Garner and Knightdale add their own. New construction is assessed once complete, so a new duplex may show only a land value on the current bill; budget on the full purchase price.
North Carolina closings are typically handled by attorneys, and the deed excise tax is usually paid by the seller.
New infill duplexes are often sold as two units on one lot, but some are platted as townhomes on separate lots, which changes how they are financed. Confirm whether you are buying one parcel with two units or two separate parcels. Older duplexes near campus may rent to students, so check leases and occupancy rules.
Many new infill duplexes are built with matching three-bedroom units and small private yards, which helps them rent quickly to families. Older duplexes near NC State tend to have smaller two-bedroom units and higher turnover tied to the school year, so plan for a summer leasing push and some vacancy between leases.
Small apartment buildings with 5 to 8 units are still residential for our DSCR programs, though max LTV can be lower and varies by program; see our 5-8 unit page for Raleigh. Buildings with 9 or more units are commercial.
For a quote, send the address, price, unit count, leases or market rents and the tax bill. The team will run the combined-rent ratio at a few loan amounts. Call (877) 298-1001 or use the form below.
Yes, if it is a 2-unit residential property held as an investment. The loan qualifies on the combined rent of both units.
Zoning changes starting in 2021 that allow duplexes, triplexes, townhomes and small apartment buildings in more residential districts. Rules depend on the parcel.
Often, yes. Two separate parcels may be financed as two townhomes rather than one 2-unit property.
Prices are high relative to rent. Lower leverage helps.
Often, yes. Lower prices relative to rent produce stronger ratios.
Up to 80% LTV on a purchase and 75% on a cash-out refinance, if the ratio works.
No. The loan qualifies on the property's rent.
Yes. LLC borrowers are standard.
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