A San Diego fourplex can cost more than a single-family home in most of the country, and rents, though high, rarely keep pace with the price. The 2-4 unit buildings that work for DSCR loans here are the ones bought with a realistic down payment and an honest look at the tax and insurance lines.
In short: LendingStreet finances San Diego 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 with no stated maximum, purchases go up to 80% LTV and the standard minimum DSCR is 1.0x. In San Diego, most 2-4 unit purchases clear 1.0x at around 60% to 70% LTV, because prices are high relative to rents and Prop 13 resets taxes on purchase.
North Park, South Park, Normal Heights, University Heights and Hillcrest have Craftsman-era duplexes, courtyard bungalows and 1950s and 1960s fourplexes on residential streets. City Heights, Kensington and Talmadge add lower-priced duplexes and small buildings. Golden Hill and Sherman Heights have older homes divided into units.
Near the beaches, Pacific Beach and Ocean Beach have many duplexes and fourplexes that rent to young professionals and students. In the suburbs, El Cajon, La Mesa, Chula Vista, National City and Escondido have 1970s and 1980s fourplex rows at lower prices per unit.
California law and the City of San Diego's own programs have made it much easier to add accessory dwelling units, and many San Diego lots now have a house or duplex with one or more ADUs. Multifamily zones allow duplexes to fourplexes on many lots in older neighborhoods.
Before you buy, confirm the legal unit count with the city. Unpermitted garage conversions are common in older neighborhoods, and an appraiser may not count them. Coastal properties can also fall under coastal zone rules.
AB 1482 caps annual rent increases on most investor-owned 2-4 unit buildings older than 15 years and adds just-cause rules. The City of San Diego's tenant protection ordinance adds just-cause and relocation requirements from early in a tenancy.
Many San Diego buildings carry long-term tenants with below-market rents. The DSCR loan uses current rents, and increases are capped, so underwrite on what the rules let you collect.
Ask the seller for every lease, rent ledger and notice of increase. A fourplex with two tenants who have been in place for fifteen years may show combined rent far below what the same building would earn fully at market, and that gap can take years to close under the caps.
This example is illustrative and not a quote. A 1960s North Park fourplex costs $1,650,000 with units renting at $2,650, or $10,600 combined. Prop 13 taxes on the purchase price are about $1,581 a month and insurance is $330. At 75% LTV the loan is $1,237,500, estimated principal and interest about $8,442 and the DSCR only about 1.02x. At 65% LTV the loan is $1,072,500, the payment about $9,227 and the DSCR about 1.15x.
A City Heights duplex costs $925,000 with sides renting at $2,850. At 65% LTV the loan is $601,250, the payment about $5,218 and the DSCR about 1.09x. Both buildings work, but only with a larger down payment than investors in lower-cost markets are used to.
| Item | Fourplex at 75% | Fourplex at 65% | Duplex at 65% |
|---|---|---|---|
| Price | $1,650,000 | $1,650,000 | $925,000 |
| Loan | $1,237,500 | $1,072,500 | $601,250 |
| Combined rent | $10,600 | $10,600 | $5,700 |
| Estimated principal and interest | $8,442 | $7,316 | $4,102 |
| Taxes and insurance | $1,911 | $1,911 | $1,116 |
| Total monthly payment | $10,353 | $9,227 | $5,218 |
| DSCR | About 1.02x | About 1.15x | About 1.09x |
Prop 13 resets the assessed value to your purchase price, so budget taxes on what you pay. San Diego County charges a documentary transfer tax on sales; confirm the amount with your title company.
The flip side of Prop 13 is that long-held buildings carry low tax bills. If you already own a duplex or fourplex bought years ago, a refinance keeps that tax base, which is why existing owners often qualify for more than a new buyer of the same building.
Some newer 2-4 unit and townhome projects, especially in South County, sit in Mello-Roos districts. Look for special taxes on the county record and include them.
Older San Diego buildings can have galvanized plumbing, aging electrical, termite damage and unpermitted additions. Insurers have tightened in California, and buildings near canyons and open space may face wildfire surcharges. Get an inspection and an insurance quote during escrow.
If the building needs significant work before it can be rented at market, a bridge loan followed by a DSCR refinance may fit better.
Utilities matter as well. Many older San Diego buildings share a water meter, and water and sewer costs here are among the higher ones in the state. Owner-paid utilities do not enter the DSCR calculation, but they come out of your cash flow every month, so get a year of bills from the seller.
San Diego also has many 5-8 unit buildings in North Park, Hillcrest and the beach areas. They are residential under our programs, though maximum LTV can be lower and varies by program. See our San Diego 5-8 unit page. Owners of five or more properties can combine them under a blanket portfolio loan.
Send the address, price, unit mix, rents and tax information. 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.
Prices are high relative to rents, and Prop 13 resets taxes on purchase. Many buildings clear 1.0x at 60% to 70% LTV.
A permitted ADU can add rent. Unpermitted units usually are not counted by the appraiser.
Most investor-owned 2-4 unit buildings older than 15 years fall under AB 1482, and city rules may also apply.
Yes. Sub-1.0 DSCR programs exist for buildings that fall just short, with their own terms.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
Yes, up to 75% LTV subject to the ratio. With older Prop 13 tax bases, long-held buildings often support more cash out than new purchases.
Yes. They are residential under our programs. See our San Diego 5-8 unit page.
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