Small multifamily in Santa Fe does not look like small multifamily elsewhere. Alongside ordinary duplexes and fourplexes on the Southside, the city has adobe compounds: a main house and one or two casitas around a shared courtyard, sometimes legally separate units, sometimes not. Knowing which you are buying is the first step to financing it.
In short: LendingStreet offers DSCR loans for Santa Fe duplexes, triplexes, fourplexes and multi-unit compounds that qualify on the combined rent of all legal units, with no W-2s or tax returns and LLC borrowers standard. Loans start at $150,000 with no stated maximum, and purchases go up to 80% LTV on some programs. Santa Fe's tight rental supply supports steady occupancy, and New Mexico's moderate property taxes help many 2-4 unit buildings clear a 1.0x DSCR at normal leverage.
Conventional duplexes and fourplexes are most common on the Southside, around Siringo Road, St. Michael's Drive, Airport Road and Rodeo Road, and in older neighborhoods west of downtown along Agua Fria and Alameda. Many were built from the 1960s through the 1980s in simple frame or stucco construction.
Closer to downtown, in the Eastside, South Capitol and the Railyard area, small multi-unit properties are usually older adobes and compounds with casitas. They rent at a premium but often need more careful review of permits and unit counts.
Newer duplexes and townhome-style buildings also appear in the Tierra Contenta area and along the southern edge of the city, where land was more available. These tend to have lower maintenance needs and separate utilities, which makes them easier to underwrite and to manage.
A courtyard property with a main house and two casitas can be a legal triplex, a house with two permitted accessory units, or a house with structures that were never permitted as dwellings. For a DSCR loan, only legal units count toward the unit count and rent.
Before you buy, check the city's permit records and zoning for the parcel. Santa Fe allows accessory dwelling units in many residential zones, and recent changes have made adding them easier, but older unpermitted casitas are common.
Two-family and multi-family uses are allowed in some Santa Fe residential and mixed-use zones and not others. A fourplex in a zone that allows only single-family homes may be a legal nonconforming use, which can affect rebuilding after a loss. Ask the city for a zoning verification if there is any doubt, and confirm insurance can be written for full replacement on a nonconforming building.
Properties in the city's historic districts need design review for most exterior changes. That does not affect a DSCR loan directly, but it adds time and cost to renovations such as new windows, additions or rooflines.
Water is another Santa Fe-specific factor. New units can require water budget approvals or offsets, so adding a unit to an existing property can involve more than a building permit. Ask the city what applies before you price in an extra unit.
This example is illustrative and not a quote. An investor buys a 1980s fourplex on Santa Fe's Southside for $860,000. Each two-bedroom unit rents for about $1,650, for combined rent of $6,600 a month. Taxes are estimated at about $6,000 a year, and insurance at $300 a month.
At 70% of the price, the loan is $602,000 and estimated principal and interest is about $4,107 a month. With taxes and insurance, the monthly total is about $4,907, for a DSCR of about 1.35x. That cushion means the building could support more leverage on some programs, or absorb a vacancy without falling below 1.0x.
| Item | Amount |
|---|---|
| Purchase price | $860,000 |
| Loan amount (70%) | $602,000 |
| Combined monthly rent | $6,600 |
| Estimated principal and interest | $4,107 |
| Property taxes (monthly) | $500 |
| Insurance (monthly) | $300 |
| Total monthly payment | $4,907 |
| DSCR | 1.35x |
As the state capital, Santa Fe has a steady base of renters. Demand comes from state government workers, hospital and school staff, service and hospitality employees, retirees, and commuters to Los Alamos. Supply is limited by geography, water and the historic character of the city, so well-kept units rarely sit empty long.
New Mexico has no statewide rent control, and landlord-tenant rules come from the state's Uniform Owner-Resident Relations Act. Residential property is taxed on one-third of assessed value, valuation increases are limited while ownership stays the same, and the value resets on sale. New Mexico has no transfer tax.
Many Santa Fe multi-unit buildings have flat or low-slope roofs, evaporative coolers, older boilers or wall heaters, and shared water meters. Water rates in Santa Fe are tiered to encourage conservation, which matters if the owner pays water.
Five- to eight-unit buildings and larger compounds are still residential for our programs, though maximum LTV can be lower, varies by program. See our Santa Fe 5-8 unit page. Owners of several small buildings can also combine five or more properties under one blanket loan.
Buildings of nine or more units are commercial and belong on our multifamily page.
Send the address, rent roll, leases, the legal unit count and any permit records for casitas or added units. If a unit is vacant or being renovated, include your rent estimate and timeline. Call (877) 298-1001 or use the form below and we will size the loan.
Yes. DSCR loans use the combined rent of all four units, with no W-2s or tax returns.
Only if they are legal dwelling units. Permitted casitas and ADUs can count toward rent; unpermitted structures usually do not.
It does not change the loan, but it can add time and cost to exterior renovations, which matters for your budget.
New Mexico has no statewide rent control. Landlord-tenant rules come from the state's Uniform Owner-Resident Relations Act, which covers deposits, notices and repairs. Check for any local requirements too.
Purchases go up to 80% LTV on some programs. Many Santa Fe 2-4 unit buildings clear 1.0x at 70% or more, because rents are solid and New Mexico property taxes are moderate. Older compounds with fewer legal units may need lower leverage.
Yes. LLC borrowers are standard, and you sign for the loan personally.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
Only with a valid city permit, and permits for non-owner-occupied STRs in residential zones are capped. See our Santa Fe STR page.
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