Ask a Rochester investor what they own and you will often hear the word double: a two-family house with one apartment upstairs and one down, separate entrances and often separate furnaces. They are the city's signature rental, and the easiest place to start with a 2-4 unit DSCR loan.
In short: LendingStreet finances Rochester two-family homes, 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. In Rochester, the property tax bill and the $150,000 minimum are the two numbers to check first.
Two-family homes built in the early 1900s through the 1920s fill neighborhoods across the city: the 19th Ward and Dutchtown on the southwest side, the South Wedge and Swillburg near downtown, Beechwood, North Winton Village and the Northeast, and Maplewood and Edgerton on the northwest side. Many are classic up-and-down doubles; some are side-by-side.
Larger houses along and near Park Avenue, East Avenue and the Neighborhood of the Arts were often divided into three or four apartments, and the Upper Monroe and Highland Park areas have triplexes and small conversions near the University of Rochester and Strong Memorial Hospital. Purpose-built fourplexes are scattered through the city and inner suburbs.
| Area | Typical 2-4 unit stock | Tenant base |
|---|---|---|
| 19th Ward, Dutchtown | Up-and-down doubles | Families, university and hospital staff |
| South Wedge, Swillburg | Doubles near downtown | Young professionals |
| Park Avenue, East Avenue, Neighborhood of the Arts | Large houses split into 3-4 units | Professionals, graduate students |
| Upper Monroe, Highland Park | Triplexes and conversions | University and hospital staff |
| Beechwood, Maplewood | Doubles | Working families |
The City of Rochester requires a certificate of occupancy for rental properties, with periodic inspections, and its lead paint ordinance applies to most pre-1978 rentals, which describes nearly every double in the city. Before you buy, confirm the property has a current certificate for the correct number of units. Lenders count rent only from legal units, and a building marketed as a triplex but approved as a double will be valued as a double.
Certificates have expiration dates and renewal inspections. If the current certificate is close to expiring, ask the seller to schedule the inspection before closing or budget for repairs the inspector is likely to require, such as handrails, smoke and carbon monoxide detectors, window repairs and paint stabilization.
Rochester-area property taxes are high relative to prices. City properties carry city and school taxes; suburban properties carry county, town and school bills. On a $265,000 double, the tax bill can be a large share of the monthly payment. Use the actual bills, not a listing estimate, and remember that a reassessment can change them.
New York charges a mortgage recording tax on the loan and a transfer tax on the deed. Most Rochester closings use attorneys, who will itemize those costs.
This example is illustrative and not a quote. A South Wedge double costs $265,000, with the lower unit at $1,250 and the upper at $1,300, or $2,550 combined. At 75% LTV the loan is $198,750, above the $150,000 minimum. Estimated principal and interest is about $1,356; with taxes of $560 and insurance of $170, the payment is about $2,086 and DSCR is about 1.22x.
A Park Avenue-area house split into three units costs $395,000 and rents for $3,950 combined. At 80% LTV the loan is $316,000; with taxes of $800 and insurance of $230, the payment is about $3,186 and DSCR is about 1.24x.
| Item | South Wedge double | Park Avenue triplex |
|---|---|---|
| Price | $265,000 | $395,000 |
| LTV | 75% | 80% |
| Loan amount | $198,750 | $316,000 |
| Estimated principal and interest | $1,356 | $2,156 |
| Taxes and insurance | $730 | $1,030 |
| Total payment | $2,086 | $3,186 |
| Combined rent | $2,550 | $3,950 |
| DSCR | 1.22x | 1.24x |
Some Rochester doubles sell at prices where the loan would land below $150,000. You can look at a higher-priced building, such as one in the South Wedge or near Park Avenue, or combine five or more properties in a blanket portfolio loan, where the minimum applies to the whole loan.
Rochester doubles are sturdy but old. Inspections often turn up aging boilers or furnaces, original knob-and-tube wiring in places, galvanized or cast iron plumbing, porches that need structural work and roofs worn by lake-effect winters. Separate furnaces and electric meters for each unit help both cash flow and leasing.
Water is usually on a single meter in a double, so the owner pays it. That cost is not in the DSCR formula, but it is part of real cash flow. Basements in older doubles can take on water in spring thaws, so look for signs of moisture and ask about past repairs.
New York's 2019 tenant protection law caps security deposits at one month's rent and limits late fees and application fees statewide. The state's 2024 good cause eviction law lets cities outside New York City opt in, so check whether local rules apply. Underwrite on current rents rather than planned increases.
Upper units in doubles sometimes rent for a little more than lowers because of light and privacy, and lowers sometimes more because of yard access. A unit-by-unit rent roll with lease dates helps the appraiser and keeps the combined-rent figure accurate.
Larger conversions near Park Avenue and East Avenue sometimes have five to eight units. They are still residential for our programs, with max LTV that varies by program. If a double needs a full renovation before it can be rented or certified, a fix and flip or bridge loan can fund the work before a DSCR refinance.
Send the address, certificate of occupancy unit count, rents, tax bills and price. LendingStreet will run the combined-rent ratio at several loan amounts. Our investor loans are business-purpose loans on non-owner-occupied property. Use the form below.
Yes. The loan qualifies on the combined rent of both units, up to 80% LTV on a purchase, if the loan is at least $150,000 and DSCR clears 1.0x.
Look at a higher-priced building or combine five or more rentals in a blanket portfolio loan.
For city rentals, yes. Make sure it matches the number of units you are buying.
City and school, or county, town and school taxes are high relative to prices. They count in the DSCR payment.
It affects compliance and costs for most pre-1978 city rentals. Keep records current.
Yes, if the units are legal. Five to eight units are still residential for our programs.
No. We only lend on non-owner-occupied investment property.
At least 620, with no W-2s or tax returns required.
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