Wilmington's small multifamily stock is split between two very different buildings: century-old houses in and around downtown that were divided into units, and newer side-by-side duplexes in the growing suburbs. Each one underwrites differently.
In short: LendingStreet finances Wilmington duplexes, triplexes and fourplexes with DSCR loans that qualify on the combined rent of all units, with no W-2s or tax returns and LLC borrowers allowed. Loans start at $150,000, purchases go up to 80% LTV and the standard minimum DSCR is 1.0x. Our investor loans are business-purpose loans on non-owner-occupied property, so the building must be fully rented or rentable as an investment.
Converted houses are common in the downtown historic district, Carolina Heights, Brooklyn Arts District and around Castle Street, where large older homes were split into two to four apartments decades ago. Sunset Park and Carolina Place add smaller duplexes and bungalows. Near UNCW, side-by-side duplexes from the 1970s and 1980s lease to students and staff.
Newer duplexes and townhome-style buildings are more common in Ogden, Monkey Junction, Leland and Castle Hayne. They tend to have lower repair needs and insurance costs but higher prices per unit.
Triplexes and fourplexes are less common than duplexes in Wilmington, and most of them are converted houses or small brick buildings near downtown. Because supply is thin, appraisers sometimes reach further for comparable sales, so good rent and sale data on similar buildings helps the file.
| Building type | Where | Strengths | Watch for |
|---|---|---|---|
| Converted historic house | Downtown, Carolina Heights, Brooklyn | Location, character, steady demand | Older wiring and plumbing, historic review |
| 1970s-1980s duplex | UNCW area, Pine Valley | Simple layout, student demand | Deferred maintenance, occupancy limits |
| Small bungalow duplex | Sunset Park, Carolina Place | Lower price per unit | Flood zone on some streets |
| Newer side-by-side duplex | Ogden, Leland, Castle Hayne | Lower repairs and insurance | Higher price, HOA rules |
The city's Land Development Code decides how many units a lot can legally hold. Many converted houses are legal nonconforming uses, which generally means the units can continue but may face limits if the use stops for a period or the building is heavily damaged.
Ask for zoning verification or permit history showing the legal unit count. An appraiser will value a building on its legal units, and rent from an unpermitted unit may not count toward your ratio.
Wilmington has locally designated historic districts where exterior changes generally need a Certificate of Appropriateness from the Historic Preservation Commission. That can affect window, porch, roof and siding work and the timeline for it.
For a downtown triplex that needs exterior repairs, build that review into your budget and schedule. Interior work is generally not reviewed the same way, but confirm with the city.
This example is illustrative and not a quote. An investor buys a Sunset Park duplex for $475,000. Each side leases for $1,650 a month, $3,300 combined. Taxes are budgeted at $290 a month and insurance at $190.
At 75% LTV the loan is $356,250, estimated principal and interest is about $2,430, total payment is about $2,910 and DSCR is about 1.13x. At 80% LTV the loan is $380,000, estimated principal and interest is about $2,592, total payment is about $3,072 and DSCR is about 1.07x. Both clear the 1.0x standard minimum.
| Item | 75% LTV | 80% LTV |
|---|---|---|
| Loan amount | $356,250 | $380,000 |
| Estimated principal and interest | $2,430 | $2,592 |
| Taxes and insurance | $480 | $480 |
| Total monthly payment | $2,910 | $3,072 |
| Combined rent | $3,300 | $3,300 |
| DSCR | About 1.13x | About 1.07x |
Rent for each unit is supported by leases and an appraiser's market rent survey. Near UNCW, rents often follow the academic year and many leases are signed by groups of students; a lease that runs August to July is normal there. Downtown units lease more to working professionals.
North Carolina does not allow local rent control. If a unit is used as a short-term rental, that income is underwritten differently, and the city's STR zoning rules apply.
On a refinance, signed leases and a few months of deposits help show that the rents are real. On a purchase, ask the seller for a rent roll, copies of leases and the security deposit ledger, since deposits transfer with the building.
In city limits you pay New Hanover County and City of Wilmington property taxes. Investors do not get the homestead benefits that owner-occupants may receive, so budget on the full bill. Units in Leland fall under Brunswick County.
Some streets in Sunset Park, near Burnt Mill Creek and along the river sit in mapped flood zones. Wind coverage and flood insurance can be a large share of the payment on an older building, so get quotes before you write an offer.
Wilmington has some small apartment buildings with 5 to 8 units downtown and near campus. They are still residential under our programs, but max LTV and reserves can differ, so see our Wilmington 5-8 unit page. Buildings with 9 or more units are commercial and covered on our multifamily page.
Many older converted houses near downtown come with dated kitchens, window units, aging roofs or a unit that has been vacant for a while. If the building cannot be fully leased at closing, a DSCR loan may not be the right first loan, because the ratio depends on rent the building can actually support.
In that case, investors often buy with a short-term bridge or fix and flip loan, complete the work and lease the units, then refinance into a DSCR loan on the stabilized rent. Plan the refinance from the start: the after-repair rent and the after-repair value both need to support the long-term loan.
Send the address, price, unit mix, current rents and lease end dates. We will run the ratio and check the legal unit count early, so a zoning question does not surface the week before closing. Call (877) 298-1001 or use the form below. Related programs include DSCR cash-out refinance and bridge loans for buildings that need work before they can be fully leased.
Yes. The loan qualifies on the combined rent of both units. Minimum loan is $150,000, purchases go up to 80% LTV and minimum credit is 620.
Only if the third unit is legal. The appraiser values the building on its legal unit count, so get zoning or permit records showing it.
Not the loan itself, but it can affect your repair timeline and budget for exterior work downtown and in Carolina Heights.
Yes, if the leases are long-term. Group leases are common and are reviewed like other leases.
Programs generally use market rent from the appraisal for vacant units on a purchase. Refinances may look more closely at actual leases.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so every unit must be a rental.
Yes, up to 75% LTV, as long as the combined rent clears the program minimum at the new payment. Seasoning varies by program.
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