The St. Louis brick two-family flat, one unit stacked on another with separate front doors, is one of the most recognizable rental buildings in the Midwest. Add the four-family buildings that line streets in Tower Grove East and Benton Park, and south city is a small-multifamily market few metros can match.
In short: LendingStreet finances St. Louis duplexes, two-family flats, triplexes and four-families with DSCR loans that qualify on the combined rent of all units, with no W-2s or tax returns. Loans start at $150,000, purchases go up to 80% LTV and cash-out up to 75%, LLC borrowers are standard and 30-year terms are available. Low prices relative to rent often make the ratio work, while condition and permits are the main things to check.
Most St. Louis 2-4 unit buildings were built from the late 1800s through the 1920s, almost always in brick. Two-family flats are everywhere in south city, from Dutchtown and Gravois Park to Tower Grove South and Southampton. Four-family buildings, often two up and two down, cluster in Tower Grove East, Fox Park, Benton Park, Shaw and Compton Heights.
Some flats were combined into single-family homes during renovation booms, and some single-family homes were split into flats. Either way, the legal use on city records is what counts.
Brick construction is a real advantage. These buildings have survived more than a century of Midwestern weather, and the shells are often sound even when the interiors need full renovation. That is why so many St. Louis investors buy flats as value-add projects with a fix and flip or bridge loan, then refinance into a DSCR loan once the units are leased.
Prices and rents vary block by block, but these patterns hold broadly.
| Area | Common building | Tenant demand | Main issue |
|---|---|---|---|
| Tower Grove South / Southampton | Two-family flats | Steady, near Tower Grove Park | Higher purchase prices |
| Tower Grove East / Fox Park | Four-families | Young renters, downtown access | Renovation quality varies |
| Benton Park / Soulard | Flats, rowhouses | Close to downtown and stadiums | Historic district review |
| Dutchtown / Gravois Park | Two-family flats | Lower rents, value-add | Vacancy and condition |
| Shaw / Botanical Heights | Flats and four-families | Near Botanical Garden, SLU | Competition for listings |
Much of south city is zoned for two-family use, with multiple-family districts along busier corridors. Many older four-families exist as legal nonconforming uses. Before you buy, check the City of St. Louis zoning map and the Assessor's record for the unit count, and ask whether the building has a current occupancy permit for each unit. If a four-family is legally a two-family, the appraisal and the rent used to size the loan will reflect two units, not four.
In the county, municipalities such as Maplewood, Richmond Heights and University City have older two-families and small apartment buildings with their own zoning rules and occupancy inspections.
This example is illustrative and not a quote. An investor buys a renovated brick four-family in Tower Grove East for $365,000. Each unit leases for $925, for combined rent of $3,700 a month.
At 75% LTV the loan is $273,750. Estimated principal and interest on a 30-year term is about $1,867. Property taxes are about $380 a month and insurance about $240, for a total payment of about $2,487. DSCR is about 1.49x. That cushion is typical of how low south city prices are relative to rent, though older systems and vacancy can eat into real cash flow.
| Item | Amount |
|---|---|
| Purchase price | $365,000 |
| Loan at 75% LTV | $273,750 |
| Combined rent, 4 units | $3,700 |
| Estimated principal and interest | $1,867 |
| Property taxes | $380 |
| Insurance | $240 |
| Total payment | $2,487 |
| DSCR | About 1.49x |
Missouri taxes residential property, including 2-4 unit buildings, at a 19% assessment ratio, with reassessment every odd-numbered year. City and county levies differ, and a renovation can raise the next assessment. Budget on the bill that will apply after your purchase and work.
Missouri has no transfer tax, so closing costs are mostly title, recording and lender fees. That helps when you buy one building and later refinance it.
Mortar joint repair, parapet walls, flat or slate roofs, galvanized plumbing and older electrical service are the usual items. Lead paint is common in pre-1978 buildings, and federal disclosure rules apply. Separate furnaces and water heaters per unit make a building easier to run than a shared boiler.
Ask who pays water, sewer and trash. In many older flats, the owner pays water and trash, which reduces cash flow even though DSCR uses rent against the fixed payment.
Renovated units near Tower Grove Park, Shaw and the Botanical Garden draw young professionals and hospital staff, and rent for more than units in lower-priced neighborhoods to the south and east. Missouri has no statewide rent control, and local governments have limited ability to adopt it.
Use comparable leases from the same few blocks when you estimate rent. Appraisers in St. Louis work at the neighborhood level, and a unit two miles away is not a good comp.
Saint Louis University, Washington University's medical campus and the hospitals along Kingshighway support demand in the central corridor, while families and long-term local renters dominate further south. Tenant turnover tends to be lower in well-kept flats with in-unit laundry and off-street parking, which are worth paying for.
Five to eight unit buildings follow the same DSCR basics with leverage that varies by program; see our St. Louis 5-8 unit page. If you own five or more flats or four-families, a blanket portfolio loan can combine them under one payment.
For a building you are buying vacant or in poor condition, a bridge or fix and flip loan can fund the purchase and renovation first, with a DSCR refinance once the units are leased and the occupancy permits are issued.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, rent roll and target leverage through the form below or call (877) 298-1001. The Missouri 2-4 unit page covers Kansas City and the rest of the state.
Yes. A two-family flat qualifies on the combined rent of both units, with a 620 minimum credit score and no tax returns.
Up to 80% LTV on a purchase and up to 75% on a cash-out refinance, starting at $150,000. The rent must clear the program's minimum ratio.
The loan minimum is $150,000, so a very low-priced flat may not reach it at normal leverage. Combining several properties in a blanket loan is one solution.
The City of St. Louis and many county municipalities have occupancy permit and inspection requirements. Confirm the status for every unit before closing.
No. Missouri has no rent control, which makes rent planning simpler, but rent must still be supported by local comparable leases.
Yes. A rate-and-term or cash-out refinance can use the new rent and appraised value. Seasoning requirements vary by program.
No. Our loans are for non-owner-occupied investment property, so all units must be rented.
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