Walk through Old Southwest and count the mailboxes: many of the big Victorian and Queen Anne houses were divided into two, three or four apartments decades ago. They are a large part of Roanoke's small multifamily supply, and they cash flow well at Roanoke prices.
In short: LendingStreet finances Roanoke duplexes, triplexes and fourplexes 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, purchases go up to 80% LTV and cash-out up to 75% LTV, with a 1.0x standard minimum DSCR. At Roanoke's rent-to-price levels, many 2-4 unit buildings clear that minimum at high leverage.
Old Southwest, a large historic district just south of downtown, has the densest supply of converted multi-unit houses. Grandin Village and Raleigh Court have side-by-side and up-and-down duplexes from the 1920s through the 1950s. Wasena, Gilmer, Gainsboro and the West End add duplexes and small conversions, and Williamson Road and the northeast have mid-century duplexes and fourplexes.
In Salem and Vinton, purpose-built duplexes are scattered through older neighborhoods. South Roanoke is mostly single-family but has a few older multi-unit houses.
| Area | Typical stock | Tenant base |
|---|---|---|
| Old Southwest | Converted Victorians, 2-4 units | Carilion staff, downtown workers |
| Grandin, Raleigh Court | 1920s-1950s duplexes | Young professionals |
| Wasena, West End, Gilmer | Duplexes and small conversions | Mixed workforce |
| Williamson Road, northeast | Mid-century duplexes and fourplexes | Working families |
| Salem, Vinton | Purpose-built duplexes | Families, college and hospital staff |
Roanoke's comprehensive plan, City Plan 2040, calls for more housing variety in existing neighborhoods, and the city has been updating its zoning to match. Many older conversions survive as legal nonconforming uses. Before you buy, confirm with the city how many units the parcel is allowed and whether each unit was permitted; lenders count rent only from legal units.
Old Southwest is a local historic district, so exterior changes such as windows, porches and siding need architectural review. Roanoke County, Salem and Vinton have their own zoning codes.
DSCR compares the combined rent of all units with the full payment, including taxes, insurance and HOA dues if any. Use current leases for occupied units and market rent for vacant ones. In Old Southwest, units vary a lot in size and layout within the same building, so a rent roll by unit helps the appraiser support the numbers.
Many Roanoke tenants stay for years, and long tenancies can leave rents below market. The DSCR test uses current leases, so a building with below-market rents may show a lower ratio than its potential. If you plan to raise rents at renewal, follow Virginia notice rules and expect the loan to be sized on today's numbers.
If the owner pays heat or water for all units, which is common in older conversions with a single boiler or meter, those costs are not in the DSCR formula but they do reduce real cash flow.
This example is illustrative and not a quote. An Old Southwest triplex costs $345,000, with units renting for $1,050, $1,100 and $1,150, or $3,300 combined. At 75% LTV the loan is $258,750. Estimated principal and interest is about $1,765; with taxes of $340 and insurance of $190, the payment is about $2,295 and DSCR is about 1.44x.
A Grandin duplex costs $265,000 and rents for $2,400 combined. At 80% LTV the loan is $212,000, above the $150,000 minimum. The payment is about $1,846 and DSCR is about 1.30x.
| Item | Old Southwest triplex | Grandin duplex |
|---|---|---|
| Price | $345,000 | $265,000 |
| LTV | 75% | 80% |
| Loan amount | $258,750 | $212,000 |
| Estimated principal and interest | $1,765 | $1,446 |
| Taxes and insurance | $530 | $400 |
| Total payment | $2,295 | $1,846 |
| Combined rent | $3,300 | $2,400 |
| DSCR | 1.44x | 1.30x |
Victorian conversions come with character and with costs. Expect older wiring, boilers or a mix of heating systems, slate or metal roofs, and plumbing that has been patched over many decades. Most were built well before 1978, so lead-based paint disclosures apply. Insurers will ask about roof age, electrical service and heating.
Budget a first-year reserve for items an inspection flags, such as replacing knob-and-tube wiring or adding egress for upper units. Fire separation between units and working smoke detectors are basic safety items that also come up with insurers.
The City of Roanoke assesses real estate and sets its own tax rate; Roanoke County, Salem and Vinton are separate. Use the current assessment and rate for the parcel. Virginia charges recordation taxes on the deed and the deed of trust, and the seller pays a grantor's tax. Your settlement agent will itemize them.
Some Roanoke duplexes sell at prices where the loan would fall below $150,000. If so, a better-located or larger building, or combining several properties in a blanket loan, is the way to finance them.
Some investors also buy two duplexes at once, or a duplex alongside single-family homes, and finance them together later. The minimum applies to the loan amount, not to each property, when they are combined.
If units are vacant or a conversion needs work, a fix and flip or bridge loan can fund the purchase and renovation, then a DSCR refinance replaces it once units are leased. Buildings with five to eight units are still residential for our programs; max LTV can be lower and varies by program.
Legalizing a unit or reconfiguring a building, for example turning an awkward five-unit conversion into a cleaner four, changes the rent the long-term loan can count. Settle the final layout before you refinance.
Send the address, legal unit count, rents and price. LendingStreet will run the combined-rent ratio at a few loan amounts and tell you which leverage level clears the minimum with room to spare. Our investor loans are business-purpose loans on non-owner-occupied property. Use the form below.
Yes, if the units are legal. Confirm the unit count with the city first, since rent is counted only from legal units.
Up to 80% LTV on a purchase if the combined rent clears the 1.0x minimum, which many Roanoke triplexes do.
Look at a larger building or combine several rentals in a blanket loan.
They affect renovation plans and costs in Old Southwest, not the loan terms themselves.
Yes. Properties anywhere in the Roanoke Valley qualify, including Roanoke County, Salem and Vinton. Each locality has its own tax rate and zoning, so use the right figures for the parcel.
Usually with the appraiser's market rent estimate, based on similar units nearby. Recent signed leases on comparable Old Southwest or Grandin units are the best support for a higher figure.
No. We only lend on non-owner-occupied investment property.
Yes. Five to eight units are residential for our programs, with max LTV that varies by program.
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