Scranton was built for coal-era families, and its streets are full of side-by-side doubles, stacked two-family homes and big houses later split into apartments. That housing stock makes small multifamily one of the most common ways to invest in the city.
In short: LendingStreet finances Scranton duplexes, triplexes and fourplexes with DSCR loans that qualify on the combined rent of all units, with no W-2s or tax returns. Loans start at $150,000 with no stated maximum, purchases go up to 80% LTV, cash-out refinances go up to 75%, the minimum credit score is 620 and LLC borrowers are standard. Because some Scranton doubles sell for less than the minimum loan, buyers often look at triplexes, fourplexes or several properties together.
The most common small multifamily building in Scranton is the double block: two side-by-side homes under one roof, often on one deed. Some doubles were later split onto two separate parcels, and each half then counts as a single-family home for lending. Check the deed and tax parcel to see which you are buying.
You will also see stacked up-and-down duplexes, larger Victorian and foursquare homes divided into three or four apartments, and a smaller number of purpose-built fourplexes from the mid-1900s.
| Building type | Where you see it | What to check |
|---|---|---|
| Side-by-side double | West Side, South Side, Minooka, North Scranton | One deed or two; shared roof and party wall |
| Up-and-down duplex | Hyde Park, Providence, Dunmore | Separate entrances, separate heat and meters |
| Converted triplex or fourplex | Hill Section, Green Ridge edges, near downtown | Legal unit count, egress, fire separation |
| Purpose-built fourplex | Scattered through the city and nearby boroughs | Parking, newer systems, zoning status |
Scranton's zoning ordinance controls how many units a building can hold. Many older conversions were done decades ago and may be legal nonconforming uses, while others added units without approval. The lender and appraiser will value the building on its legal unit count, so a fourth unit without approval can lower both the value and the rent used.
Ask the seller for occupancy permits or rental registration records for each unit, and check the city's zoning map for the district. Dunmore, Taylor, Old Forge and other nearby boroughs have their own zoning codes.
Units in the Hill Section draw University of Scranton students, graduate students and staff. Green Ridge and Dunmore attract Marywood students and hospital workers, while the West and South sides rent mostly to working families. Rents in Scranton are modest compared with larger Pennsylvania metros, but so are prices, which is why small multifamily often pencils here.
Tenant-paid utilities matter. Buildings with separate gas and electric meters for each unit keep owner costs lower, while a single boiler for several units shifts heating costs to you.
This example is illustrative and not a quote. An investor buys a converted triplex in the Hill Section for $240,000. The units rent for $1,000, $950 and $900, a combined $2,850 a month.
At 75% LTV the loan is $180,000. Estimated principal and interest on a 30-year loan is about $1,259. Taxes are about $345 and insurance $180, for a total payment near $1,784. The DSCR is about 1.60x, well above the 1.0x standard minimum.
| Item | Amount |
|---|---|
| Purchase price | $240,000 |
| Loan at 75% LTV | $180,000 |
| Combined rent | $2,850 |
| Estimated principal and interest | $1,259 |
| Taxes and insurance | $525 |
| Total monthly payment | $1,784 |
| DSCR | About 1.60x |
A $165,000 double at 80% LTV produces a $132,000 loan, below our $150,000 minimum. Buyers in that spot can put two or more properties on a single application, choose a larger triplex or fourplex, or wait until they own five or more properties and use a blanket portfolio loan.
If the double needs work first, a fix and flip or bridge loan can fund the purchase and repairs, followed by a DSCR refinance once the units are leased.
Lackawanna County assessments are based on an old base year, so tax bills on similar buildings can differ a lot. Use the actual bill, including city and school district taxes. Pennsylvania's realty transfer tax applies at closing, with state and local shares, and some municipalities charge more than others.
Most Scranton two-to-four unit buildings are 80 to 120 years old. Expect questions about roofs, chimneys, porches, wiring and heating. Insurers may require updates before they will write a policy.
Many Scranton doubles and triplexes have been owned by the same family for decades, and the paperwork can be thin. Leases may be verbal or expired, rents may sit below market and security deposits may not be documented. Ask for a written rent roll, copies of any leases and a record of deposits, and plan to sign new leases after closing.
When current rents are well below market, the appraiser's market rent estimate can sometimes be used, but programs differ on whether they will use market rent or the lower in-place rent on a purchase. If the in-place rent does not support the payment, a short bridge period to raise rents or renovate units may make more sense than going straight to a DSCR loan.
Also check who pays which utilities. Older buildings sometimes have one water meter or a shared boiler, and the owner covers those bills. Those costs do not change the DSCR formula, but they do change your actual cash flow.
Larger converted homes and small apartment buildings with five to eight units are still residential for our DSCR programs, though maximum LTV can be lower and varies by program. See our Scranton 5-8 unit DSCR page for those buildings. For statewide details, see our Pennsylvania 2-4 unit rental loan page.
Our investor loans are business-purpose loans on non-owner-occupied property. To get a quote, share the addresses, purchase price or estimated value, leases and timeline using the form below, or call (877) 298-1001. We review the file and return a structure that fits the numbers.
If both halves sit on one deed and tax parcel, yes. If the halves were split onto separate parcels, each is treated as a single-family home.
The combined rent of all units, from leases or a market rent estimate in the appraisal, compared with the full monthly payment.
The loan is based on the legal unit count. An unapproved unit may not count toward value or rent, and it can raise questions during underwriting.
DSCR loans start at $150,000. Lower-priced doubles may need a larger building, more than one property or a blanket loan.
No. The loan qualifies on the property's rent. The minimum credit score is 620 and LLC borrowers are standard.
Yes. Cash-out goes up to 75% LTV, and seasoning requirements vary by program.
Yes. We finance 2-4 unit rentals throughout Lackawanna County and nearby Luzerne County towns.
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