Salt Lake City's older neighborhoods hold a surprising amount of small multifamily housing: brick fourplexes in Central City, converted Victorians in the Avenues and 1960s duplexes on the west side. They rent steadily to students, hospital staff and young professionals, and Utah's tax rules help long-term landlords.
In short: LendingStreet finances Salt Lake City 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 allowed. Loans start at $150,000, purchases go up to 80% LTV and the standard minimum DSCR is 1.0x. In Salt Lake, prices relative to rents usually decide how much leverage a building can carry, while the residential exemption keeps the tax line modest.
Central City, the Ballpark area and Liberty Wells have many early 20th century homes and small brick apartment buildings, including fourplexes with a classic two-up, two-down layout. The Avenues, on the hillside above downtown, has Victorian and bungalow homes split into two to four units, popular with University of Utah and hospital staff.
Sugar House and the 9th and 9th area have scattered duplexes at higher prices. On the west side, Rose Park and Glendale have postwar duplexes at lower prices, and South Salt Lake, Murray and Millcreek have 1960s and 1970s duplex and fourplex rows built as rentals.
Salt Lake City zones such as R-2 and the RMF districts allow two-family and multifamily housing, while many single-family zones do not. The city has also loosened rules on accessory dwelling units. Many older conversions predate current zoning, and some were never permitted.
Before you buy, confirm the legal number of units with the city's zoning office. An appraiser may treat an unpermitted basement unit as part of the main unit, which lowers both value and counted rent. Salt Lake City also requires a business license for rentals, with a good landlord program that can affect the license cost.
Salt Lake prices rose quickly over the past decade, faster than rents, so 2-4 unit buildings often need more equity to clear 1.0x than buildings in lower-cost Midwest markets. The upside is a tax line that is low compared with prices, because tenant-occupied rentals can qualify for the residential exemption.
Utah has no rent control under state law, so rents follow the lease and the market. The loan uses signed leases and market rent for vacant units.
Demand is strongest near the University of Utah, the hospitals on the east bench, downtown employers and TRAX light rail stations. Units with off-street parking, in-unit laundry and air conditioning lease faster and for more, which matters when you are counting every dollar of combined rent against the payment.
This example is illustrative and not a quote. A brick Central City fourplex costs $975,000 with units renting at $1,475, or $5,900 combined. With the residential exemption in place, taxes are about $390 a month; insurance is $230. At 75% LTV the loan is $731,250, estimated principal and interest about $4,988 and the DSCR about 1.05x. At 70% the loan is $682,500 and the DSCR improves to about 1.12x.
A Rose Park duplex costs $640,000 with sides renting at $1,900. At 75% LTV the loan is $480,000, the payment about $3,704 and the DSCR about 1.03x. Lower-priced west-side buildings often carry more leverage than east-side ones.
| Item | Fourplex at 75% | Fourplex at 70% | Duplex at 75% |
|---|---|---|---|
| Price | $975,000 | $975,000 | $640,000 |
| Loan | $731,250 | $682,500 | $480,000 |
| Combined rent | $5,900 | $5,900 | $3,800 |
| Estimated principal and interest | $4,988 | $4,656 | $3,274 |
| Taxes and insurance | $620 | $620 | $430 |
| Total monthly payment | $5,608 | $5,276 | $3,704 |
| DSCR | About 1.05x | About 1.12x | About 1.03x |
Utah taxes a primary residence at 55% of market value. A unit rented to a tenant who lives there as their primary residence can qualify, so a fully leased fourplex is usually taxed on the reduced value. Counties may require a signed residential declaration from the owner.
If a unit is used as a short-term rental, it does not qualify and is taxed on full value. Pull the record from the Salt Lake County assessor and confirm the exemption is applied.
Many Central City and Avenues buildings are unreinforced brick from the early 1900s. They have character and strong rental demand, but insurers price earthquake risk from the Wasatch Fault, and some buildings have had seismic upgrades while others have not. Ask about retrofits and get an insurance quote early.
Older buildings can also need new roofs, boilers and electrical work. If the building needs significant renovation, a bridge loan followed by a DSCR refinance may fit better.
Winter inversions and dry summers are hard on older systems, and many Central City fourplexes still run on a single boiler with owner-paid heat. Owner-paid utilities do not enter the DSCR calculation, but they come out of your cash flow every month, so get a year of utility bills from the seller.
Salt Lake also has small apartment buildings with five to eight units, often 1960s walk-ups. They are residential under our programs, though maximum LTV can be lower and varies by program; see our Salt Lake City 5-8 unit page. Investors with five or more properties can combine them under a blanket loan.
If you are choosing between an east-side fourplex and a west-side duplex, send both. Running them on the same assumptions, with the correct exemption status for each, usually makes the trade-off between price and cash flow easy to see.
Send the address, price, unit mix, rents and tax record. The team will run the combined-rent ratio at a few loan amounts, including sub-1.0 DSCR programs if the building is close, and come back with options. Use the form below or call (877) 298-1001.
Yes. The loan qualifies on the combined rent of all four units, with no W-2s or tax returns.
Units rented to tenants as their primary residence can qualify. Short-term rental units do not.
Salt Lake City requires a business license for rental properties. Other cities in the valley have their own rules.
Only if it is a legal unit. Confirm with the city; unpermitted units may not be counted by the appraiser.
Up to 80% LTV on a purchase, subject to the property clearing the minimum DSCR. Many east-side buildings work better at 70% to 75%.
No. State law prevents cities from adopting rent control.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
Yes, up to 75% LTV subject to the ratio. Seasoning varies by program.
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