Winston-Salem has more small multifamily than its size suggests: brick quadplexes from the mid-1900s, houses split into units near downtown and the medical center, and side-by-side duplexes scattered through older neighborhoods. Prices per unit are moderate, which helps the ratio.
In short: LendingStreet finances Winston-Salem 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 every unit must be a rental.
Small brick apartment buildings with four units, often two up and two down, were built across Winston-Salem in the middle of the last century, especially near Ardmore, the West End, Northwest Winston and along older corridors leading out of downtown. Many are solid masonry buildings with simple layouts, though heating, plumbing and electrical systems may be original or partly updated.
Converted houses are common in Ardmore, the West End and Washington Park, where larger older homes were divided into two or three units. Side-by-side duplexes appear in neighborhoods near Winston-Salem State University and in postwar areas south and east of downtown. Newer duplexes and townhome-style buildings are more common in Kernersville and Clemmons.
| Building type | Common areas | Tenant base | Typical issues |
|---|---|---|---|
| Brick fourplex | Ardmore, West End, Northwest Winston | Medical staff, students, workers | Original systems, shared laundry, parking |
| Converted house | Ardmore, West End, Washington Park | Professionals, graduate students | Legal unit count, older wiring |
| Side-by-side duplex | Near WSSU, Southside, Easton | Long-term local renters | Deferred maintenance, condition varies |
| Newer duplex | Kernersville, Clemmons | Families, commuters | Higher price, HOA rules |
Winston-Salem and Forsyth County use joint Unified Development Ordinances. Many single-family districts do not allow new multi-unit buildings, so many older duplexes and fourplexes sit in areas where they are legal nonconforming uses. That is common and usually financeable, but the building's legal unit count needs to be clear.
Ask for zoning verification or permit history from City-County Planning. If a house was split into three units without permits, the appraiser and the lender may only count the legal units, which lowers both the value and the rent used for the ratio.
The medical center draws nurses, residents and staff who want to live in Ardmore or the West End, close to work. Wake Forest graduate students and UNC School of the Arts students rent near Reynolda Road and downtown. Winston-Salem State students and staff rent on the east side. Many other units lease to working households across the city.
Rents for a unit in an older fourplex are generally modest, so the ratio depends on keeping vacancy and expenses under control. Appraisers will use a market rent survey for each unit, and current leases help show the rent is real.
This example is illustrative and not a quote. An investor buys a four-unit brick building near Ardmore for $520,000. Each unit rents for $1,050, $4,200 combined. Taxes are budgeted at $430 a month and insurance at $230.
At 75% LTV the loan is $390,000, estimated principal and interest is about $2,660 a month, total payment is about $3,320 and DSCR is about 1.26x. At 80% LTV the loan is $416,000, estimated principal and interest is about $2,838, total payment is about $3,498 and DSCR is about 1.20x. Both clear the 1.0x standard minimum with room for a vacancy month.
| Item | 75% LTV | 80% LTV |
|---|---|---|
| Loan amount | $390,000 | $416,000 |
| Estimated principal and interest | $2,660 | $2,838 |
| Taxes and insurance | $660 | $660 |
| Total monthly payment | $3,320 | $3,498 |
| Combined rent (4 units) | $4,200 | $4,200 |
| DSCR | About 1.26x | About 1.20x |
A duplex in Waughtown or near WSSU may sell for well under $200,000. At 75% to 80% LTV, the loan can land below our $150,000 minimum. Options include buying a larger building, combining several properties in a blanket portfolio loan or using lower leverage on a higher-priced duplex.
Fourplexes and better-located triplexes are less likely to run into the minimum, which is one reason many local investors focus on them. A fourplex also spreads vacancy risk: one empty unit out of four hurts far less than one empty side of a duplex.
Buildings inside Winston-Salem pay Forsyth County and city property taxes. Forsyth reappraises more often than the eight-year maximum under North Carolina law, so confirm the current assessed value and bill rather than relying on an older figure. Investors do not receive owner-occupant tax relief.
North Carolina's deed excise tax is $1 per $500 of price, usually paid by the seller, and there is no state mortgage recording tax. Insurance on a brick fourplex is often reasonable, but older wiring, roofs or a past claim can raise the premium.
North Carolina does not allow local rent control. Security deposits are capped by state law based on lease length, and must be held in a trust account or bonded. If you buy an occupied building, the existing deposits should transfer to you at closing.
Winston-Salem enforces minimum housing standards through code inspections, so a building with open violations may need repairs before a DSCR loan closes.
If a building has vacant units or needs a full renovation, a bridge or fix and flip loan can fund the purchase and repairs, with a DSCR refinance once the units are leased. Plan the refinance numbers before you buy.
Buildings with 5 to 8 units are still residential under our programs; see our Winston-Salem 5-8 unit page. Buildings with 9 or more units are commercial and covered on our multifamily page.
Send the address, price, unit count, rents, lease dates and who pays which utilities. We will run the ratio, flag any zoning questions early and show options at a few loan amounts. Call (877) 298-1001 or use the form below.
Yes. The loan qualifies on the combined rent of all four units. Minimum loan is $150,000, purchases go up to 80% LTV and minimum credit is 620.
Usually, if it is a legal nonconforming use with a clear unit count. Get zoning verification from City-County Planning.
The loan may fall below the $150,000 minimum. A blanket loan across several properties or a larger building can solve that.
The standard ratio uses rent against principal, interest, taxes, insurance and HOA dues. Utilities you pay do not enter the ratio directly, but they affect your real cash flow.
Leases of a year are standard. Furnished monthly rentals are often underwritten on long-term market rent instead.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so all units must be rentals.
Yes, up to 75% LTV on cash-out, as long as the rent clears the program minimum at the new payment. Seasoning varies by program.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.