Seattle's small multifamily buildings are a mix of century-old houses split into units, mid-century fourplexes and new middle housing that state law now requires the city to allow. Each type underwrites a little differently.
In short: LendingStreet finances Seattle duplexes, triplexes and fourplexes with DSCR loans that qualify on the combined rent of all units, not on your tax returns. Loans start at $150,000 with no stated maximum, purchases go up to 80% LTV and cash-out up to 75%, the minimum credit score is 620 and LLC borrowers are standard. Because Seattle prices are high relative to rents, many 2-4 unit purchases in the city work best at 65% to 70% LTV.
Older duplexes and triplexes are common on Capitol Hill, First Hill, Queen Anne, Wallingford, Fremont and the University District, often in large early-1900s homes divided into apartments. Mid-century fourplexes appear in Ballard, Greenwood, Beacon Hill and West Seattle. Newer two-to-four unit buildings and attached rowhouses have been going up across Neighborhood Residential and Lowrise zones.
| Building type | Typical areas | Underwriting note |
|---|---|---|
| Converted older house, 2-4 units | Capitol Hill, Queen Anne, Wallingford, U District | Confirm legal unit count and egress |
| Mid-century fourplex | Ballard, Greenwood, Beacon Hill, West Seattle | Older systems; parking may be limited |
| New stacked or side-by-side units | Lowrise and Neighborhood Residential zones | One parcel or unit lots; HOA if condo |
| House with ADU and DADU | Citywide | Up to three units on one lot; rent for each |
Washington's middle housing law, passed in 2023, requires cities of Seattle's size to allow at least four units on most residential lots, and more near major transit or with affordable units. Seattle has been updating its zoning to comply, and the city already allowed a main house plus two accessory dwelling units on most lots.
For lending, what matters is what exists and is legally permitted today. A building is valued and underwritten on its current permitted units and rents, not on what the zoning might allow later. If you plan to add units, a construction loan or bridge loan may come first, followed by a DSCR loan once the units are finished and leased.
Seattle rentals must be registered under the city's Rental Registration and Inspection Ordinance. The city requires long advance notice before a rent increase, has just-cause eviction rules and limits move-in fees and deposits. In 2025, Washington adopted a statewide cap on annual rent increases for many residential rentals, with exemptions including newer buildings.
When you buy a building with below-market rents, these rules affect how quickly you can raise them. Underwrite on the rents you can collect now and plan conservatively for increases.
This example is illustrative and not a quote. An investor buys a Wallingford triplex for $1,350,000. The three units rent for $2,750, $2,700 and $2,650, a combined $8,100 a month. Taxes are about $1,000 and insurance about $250 a month.
At 75% LTV the loan is $1,012,500 and estimated principal and interest is about $7,080, for a total near $8,330 and a DSCR of about 0.97x. At 65% LTV the loan is $877,500, principal and interest about $6,136, total near $7,386 and DSCR about 1.10x, which clears the 1.0x standard minimum.
| Item | 75% LTV | 65% LTV |
|---|---|---|
| Loan amount | $1,012,500 | $877,500 |
| Estimated principal and interest | $7,080 | $6,136 |
| Taxes and insurance | $1,250 | $1,250 |
| Total monthly payment | $8,330 | $7,386 |
| Combined rent | $8,100 | $8,100 |
| DSCR | About 0.97x | About 1.10x |
King County reassesses property values every year, so tax bills can rise with the market. Use the current tax statement and expect changes after a sale. Washington's real estate excise tax is paid by the seller and is graduated, with a higher share on more expensive properties, plus a local portion; buyers still feel it in pricing and in their own eventual sale.
Insurance on older Seattle buildings depends on wiring, plumbing, roof age and seismic features. Unreinforced masonry is a concern for insurers, and some older wood-frame buildings have had seismic retrofits that can help.
Many older Seattle triplexes and fourplexes have tenants who have lived there for years at rents below today's market. Seattle's notice requirements and just-cause rules mean you cannot simply reset those rents after closing. The DSCR is usually calculated on the in-place leases or the lower of in-place and market rent, depending on the program.
Ask the seller for every lease, any rent increase notices already given, deposit records and a list of tenant-paid and owner-paid utilities. Older Seattle buildings often have a single water and sewer account, which the owner pays, and Seattle Public Utilities bills for water, sewer and drainage can be large on a multi-unit lot.
If the in-place rents do not support a useful loan amount, consider a larger down payment, a sub-1.0 DSCR program or a different building.
Many new Seattle buildings with two to four homes are split into unit lots or condominiums so each home can be sold separately. If you buy all units in a condo regime, the lender looks at the HOA documents and may treat each unit as its own property. If you buy one building on one parcel, it is a standard 2-4 unit loan. Ask which structure applies before you apply.
Small apartment buildings with five to eight units are still residential for our programs, though maximum LTV can be lower and varies by program; see our Seattle 5-8 unit DSCR page. For Tacoma, Spokane and other Washington cities, see our Washington 2-4 unit rental loan page.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address or property list, the price or value, the rents and your target leverage through the form below, or call (877) 298-1001, and the financing team will run the numbers and come back with options.
Up to 80% LTV on a purchase, but in Seattle the rent often supports a lower loan. Many buyers land between 65% and 70% LTV to reach 1.0x.
No. The loan uses the units that are legally permitted and rentable today. Future units would need construction financing first.
It can be underwritten as a three-unit property if all units are permitted. Rent from each unit counts toward the DSCR.
It limits how quickly you can raise below-market rents after buying. Underwrite on current rents rather than planned increases.
The loan is based on legal units. Unpermitted units may not count toward rent or value.
No. The loan qualifies on the property's rent. LLC borrowers are standard and the minimum credit score is 620.
Yes, up to 75% LTV, if the rent supports the new payment. Seasoning rules vary by program.
Usually not. Each townhome on its own lot is a separate single-family property, unless you buy them together under a blanket loan.
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