A lot of Richmond's small multifamily is hiding in plain sight: Fan District townhouses split into upstairs and downstairs flats, Museum District houses with three mailboxes on the porch, and Northside foursquares divided decades ago.
In short: LendingStreet finances Richmond 2-4 unit rentals with DSCR loans that qualify on the combined rent of all units, with no W-2s or tax returns and LLC borrowers standard. Loans start at $150,000 with no stated maximum, with purchases up to 80% LTV and cash-out up to 75% LTV. Richmond's real estate tax bill is often the line that decides how much leverage a Fan or Museum District building can carry.
The Fan, the Museum District and Carytown-adjacent blocks have the densest supply of converted 2-4 unit buildings, many in brick rowhouses and large early 1900s houses. Oregon Hill and the blocks around VCU's Monroe Park campus lean toward student tenants. Jackson Ward has rowhouse flats close to downtown and the VCU Health campus.
Northside, including Bellevue, Ginter Park and Barton Heights, has foursquares and bungalows split into two or three units, and Church Hill has rowhouse duplexes. In the counties, purpose-built duplexes are scattered through Henrico near Richmond's northern edge and in older parts of Chesterfield.
| Area | Common 2-4 unit stock | Tenant base |
|---|---|---|
| Fan and Museum District | Converted rowhouses and large houses | Young professionals, VCU staff |
| Oregon Hill, near Monroe Park | Small houses and rowhouse flats | VCU students |
| Jackson Ward | Rowhouse flats | Downtown and VCU Health workers |
| Northside | Split foursquares and bungalows | Families, professionals |
| Church Hill | Rowhouse duplexes | Professionals, downtown workers |
Many conversions in the Fan and Museum District predate current zoning and survive as legal nonconforming uses. Others were never permitted. Before you buy, check the city's zoning and permit records to confirm how many units are legal; an appraiser and lender will only count rent from legal units.
Richmond has been rewriting its zoning ordinance through a project called the Code Refresh, aimed in part at allowing more housing types. Rules for adding units are changing, so confirm the current district standards with the city before planning a conversion.
The City of Richmond reassesses real estate every year, and in the Fan and Museum District, assessments on multi-unit buildings can be high relative to rent. That tax line enters the DSCR formula directly. Henrico and Chesterfield set their own rates and often come in lower on comparable rents, which is one reason county duplexes can carry more leverage.
Virginia also charges recordation taxes on the deed and the deed of trust at closing. Your settlement agent will give exact figures.
When you run numbers on a Fan building, pull the current assessment from the city's online property records and apply the city's current rate to it. Do not rely on a listing sheet's tax figure, which may lag a recent reassessment by a year or more.
This example is illustrative and not a quote. A Fan District duplex costs $525,000 and rents for $3,300 a month combined. Taxes run about $525 a month and insurance $150. At 75% LTV the loan is $393,750 and the payment is about $3,361, for a DSCR of about 0.98x. At 70% LTV the payment drops to about $3,182 and DSCR is about 1.04x.
A Northside triplex costs $600,000 and rents for $4,350 combined. At 75% LTV the loan is $450,000; with taxes of $600 and insurance of $200, the payment is about $3,870 and DSCR is about 1.12x. The third unit's rent does a lot of work.
| Item | Fan duplex, 75% | Fan duplex, 70% | Northside triplex, 75% |
|---|---|---|---|
| Loan amount | $393,750 | $367,500 | $450,000 |
| Estimated principal and interest | $2,686 | $2,507 | $3,070 |
| Taxes and insurance | $675 | $675 | $800 |
| Total payment | $3,361 | $3,182 | $3,870 |
| Combined rent | $3,300 | $3,300 | $4,350 |
| DSCR | 0.98x | 1.04x | 1.12x |
Most of Richmond's converted multi-unit housing was built before 1978, so lead-based paint disclosures apply, and older wiring, cast iron drains and slate or flat roofs show up in inspections. Several city neighborhoods, including parts of the Fan, Church Hill and Jackson Ward, are city Old and Historic Districts where exterior changes need approval.
Buildings near VCU often lease by the bedroom or on August-to-July cycles. A DSCR loan can use those leases if they are standard residential leases, but show rent coverage for the full year. Parents often co-sign student leases, which can help collections but does not change how the DSCR is calculated. Units near VCU Health and the Bon Secours and HCA hospitals lease steadily to staff, and furnished 30-day-plus rentals are generally treated as leases rather than STRs; confirm with the city.
Larger Fan houses and small Northside buildings sometimes have five to eight units. They are still residential for our programs, though max LTV can be lower and varies by program. See our Richmond 5-8 unit page.
If a building has more units than the city recognizes, the loan will be sized on the legal count. Some investors use a bridge loan to buy, legalize or reconfigure units, and then refinance into a DSCR loan once the unit count and leases are settled.
Many Richmond conversions share a single water meter, and some older buildings still share gas or a boiler. Utilities paid by the owner do not enter the DSCR formula, but they cut real cash flow, and they can make rents look stronger than they are when comparing to units where tenants pay their own. Separately metered units for electric and heat are easier to underwrite and easier to lease.
If you plan to split meters after closing, budget for it and check with the utility first.
Send the address, legal unit count, rents and price. LendingStreet will run the ratio with the actual city or county tax bill and show what leverage works. If the 75% LTV ratio is tight, we will show the loan amount that clears 1.0x and whether a sub-1.0 DSCR program fits. Our investor loans are business-purpose loans on non-owner-occupied property. Use the form below.
Yes, if the units are legal. Lenders count rent only from units the city recognizes, so confirm the unit count first.
Often because of the city's real estate tax bill, which is reassessed annually and can be high relative to rent in central neighborhoods.
Sometimes. County tax bills on similar rents are often lower, which raises the ratio.
Richmond's ongoing rewrite of its zoning ordinance, which affects where additional units can be added. Confirm current rules with the city.
Yes, if they are standard residential leases. Show rent for the full year.
Up to 80% LTV on a purchase if the combined rent supports it, with a 1.0x standard minimum DSCR.
No. These are business-purpose loans on non-owner-occupied property.
Yes, $150,000, with no stated maximum.
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.