Tulsa's oil boom years left Midtown with a deep supply of small multifamily: brick duplexes from the 1920s and 1930s, garage apartments behind larger homes, and two-story fourplexes tucked among single-family streets. Prices are still low enough that many of these buildings clear the DSCR test at full purchase leverage.
In short: LendingStreet finances Tulsa 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, purchases go up to 80% LTV and cash-out up to 75% LTV, with a standard 1.0x minimum DSCR, 620 minimum credit score and LLC borrowers allowed. Our investor loans are business-purpose loans on non-owner-occupied property.
Midtown holds most of it. Florence Park, Renaissance, Swan Lake and the streets around Cherry Street and Brookside have brick duplexes and fourplexes built between the 1920s and 1950s, often on lots that also have a garage apartment. Kendall-Whittier and the area around the University of Tulsa have duplexes and converted houses leased to students and staff. The Pearl District and Riverview near downtown have older buildings, some renovated and some waiting to be.
East Tulsa and the areas near 21st and Memorial have newer side-by-side duplexes and small fourplexes from the 1970s and 1980s at lower prices. Broken Arrow and Owasso have scattered newer duplexes.
Tulsa also has a growing amount of infill duplex and townhome construction near downtown and in the Kendall-Whittier and Pearl District areas. Newer buildings usually cost more per unit but insure for less and need fewer repairs, which can make the ratio similar to an older building at a lower price.
Tulsa's zoning code has districts that allow duplexes and small multifamily, while many single-household districts do not. Older Midtown buildings may be legal nonconforming uses. Garage apartments are common, but not all were permitted. Confirm the zoning and the legal unit count with the City of Tulsa and the Tulsa County Assessor before you buy, since an appraiser will only give rent credit to legal units.
If a Midtown home has a garage apartment that is not permitted, the building may be valued and underwritten as a single-family home with no credit for the second unit. That can still work as a DSCR loan, but the numbers will be different from what the listing suggests.
This example is illustrative and not a quote. An investor buys a 1950s brick fourplex near TU for $420,000 with 20% down, the maximum 80% LTV on a purchase. The units rent for $950, $925, $925, $900, or $3,700 a month.
Estimated principal and interest on a loan of $336,000 is about $2,292. Property taxes are about $350 and insurance about $400, so the total payment is about $3,042. Rent divided by that payment gives a DSCR of about 1.22x.
Notice that insurance is higher than taxes. That is common in Oklahoma, and it is why a newer roof can make a real difference in a Tulsa fourplex's numbers.
If the investor put 25% down instead, the ratio would rise and the monthly payment would fall. Many Tulsa investors still choose 80% on buildings like this to keep cash available for the roof, HVAC and water heater replacements older fourplexes tend to need.
| Unit | Rent |
|---|---|
| Unit 1 (two-bedroom) | $950 |
| Unit 2 (two-bedroom) | $925 |
| Unit 3 (two-bedroom) | $925 |
| Unit 4 (one-bedroom) | $900 |
| Total rent | $3,700 |
| Total payment | $3,042 |
| DSCR | 1.22x |
Midtown units lease to young professionals, hospital staff from Saint Francis, Hillcrest and Ascension St. John, and people relocating to Tulsa for work, including through the Tulsa Remote program. Units near TU see student turnover each summer. East Tulsa duplexes lease to working families and tend to have lower rents and lower prices. Use the appraiser's rent schedule, which shows market rent for each unit.
Oklahoma hail and wind make roof age the first question an insurer asks. Many policies carry a separate wind and hail deductible. Older brick buildings may also have original wiring, cast iron drains and shared heating systems that carriers will ask about. Get an insurance quote before you finalize your offer, and consider impact-resistant roofing when you replace a roof, since some carriers offer credits for it.
Oklahoma property taxes are moderate. Tulsa County assesses residential property at an assessment ratio set within the range state law allows, and rental buildings do not get the homestead exemption. Oklahoma charges a documentary stamp tax on deeds, and title and recording costs apply at closing.
Some older Tulsa duplexes sell for less than $190,000, which at 80% LTV produces a loan below our $150,000 minimum. Fourplexes and better-located duplexes usually clear it. If you are buying several lower-priced duplexes, a blanket loan combining five or more properties may be a better fit.
Buildings of five to eight units are still residential for us, and Midtown and the Pearl District have a number of them. See our Tulsa 5-8 unit page, since max LTV on those buildings can be lower and varies by program.
Send the address, price, rent roll, roof age and an insurance quote through the form below, or call (877) 298-1001. We will tell you what leverage the building supports and whether every unit counts. Our Oklahoma 2-4 unit page covers Oklahoma City and Norman buildings too.
Yes, if the loan is at least $150,000. It qualifies on the combined rent of both units.
Often, because prices are low relative to rents. Each deal still has to clear the DSCR test, and insurance on an older building can change the answer.
Only if it is a legal unit. Confirm with the City of Tulsa and county records.
Hail and wind risk make Oklahoma premiums high, and the premium is part of the payment used for DSCR.
Yes. LLC borrowers are standard, and you sign for the loan personally. Make sure the LLC is in good standing with the Oklahoma Secretary of State.
Yes, if they are 1 to 8 unit residential rentals that meet the DSCR test. The appraiser will use market rent per unit, and you should plan for summer turnover.
Yes. Cash-out goes up to 75% LTV after seasoning, which varies by program, and rate-and-term up to 80% on some programs. A new roof since you bought can help the numbers.
Five to eight units are still residential for us. See our Tulsa 5-8 unit page.
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