Tennessee offers two very different small multifamily markets: Memphis, where older brick fourplexes still produce strong rent relative to price, and Nashville, where newer duplexes trade at higher values.
In short: Our top pick for Tennessee 2-4 unit rentals is LendingStreet. We qualify duplexes, triplexes and fourplexes on the combined rent of every unit, with no W-2s or tax returns, a 620 minimum credit score and LLC borrowing as standard. Purchases go up to 80% LTV and cash-out refinances up to 75% LTV, on 30-year terms, with loans from $150,000 and no stated maximum. We lend across Tennessee. Watch the recording taxes at closing and how a Nashville duplex is titled.
Tennessee investors range from Memphis buyers adding fourplexes to Nashville investors holding newer duplexes. We underwrite both on rent, and we help you sort out title questions, such as how a horizontal property regime duplex is set up.
Our DSCR rental loans start at $150,000 with no stated maximum. Purchases go up to 80% LTV and cash-out refinances up to 75% LTV, with a 620 minimum credit score and 30-year terms available. You qualify on the property's rent, not on W-2s or tax returns, and borrowing in an LLC is standard.
It fits investors buying or refinancing a non-owner-occupied duplex, triplex or fourplex anywhere in Tennessee. To see your numbers, get a quote with the form below or call (877) 298-1001.
Investors searching for 2-4 unit rental lenders often compare national names like Dominion Financial, LendingOne, Lima One, New Silver and RCN Capital. Here is how LendingStreet stacks up on the scenarios that matter most for investors in Tennessee. In every scenario below, LendingStreet is the best fit.
Figures for other lenders are as stated on each lender's own website as of November 2026. Lender terms change, so verify current terms with any lender before you apply. Ready to see your numbers? Use the form below or call (877) 298-1001.
| Scenario | Best fit | Why |
|---|---|---|
| Rental loan above $2M | LendingStreet | Our DSCR loans have no stated maximum. LendingOne states DSCR loans up to $2,000,000 and RCN Capital states long-term rental loans up to $1.5M. |
| Credit score in the 620s | LendingStreet | Our DSCR minimum is 620. RCN Capital and New Silver state 660 minimums, and Dominion Financial states 680, with exceptions to 660. |
| Property in any state, including DC | LendingStreet | We lend in all 50 states and DC. Lima One states it lends across 46 states, and Dominion Financial lists 49 states plus DC. |
Memphis has older brick duplexes and fourplexes in Midtown, Cooper-Young, Binghampton and East Memphis, often at prices that produce strong ratios. Nashville has duplexes in East Nashville, Inglewood and The Nations, including newer side-by-side builds.
Knoxville has student rentals near the University of Tennessee, Chattanooga has duplexes in North Chattanooga and Highland Park, and Clarksville has workforce rentals near Fort Campbell.
Most Tennessee investors end up choosing between a local bank or credit union, a hard money lender, or an investor-focused DSCR lender. Here is how the types usually line up on a 2-4 unit rental.
Banks and credit unions can be a good fit for borrowers with simple tax returns and a local relationship. Hard money works for short projects but is not built for a long hold. For a rental you plan to keep, a DSCR loan that qualifies on the building's rent is usually the cleaner match.
| What Tennessee investors need | LendingStreet | Typical bank or credit union | Typical hard money lender |
|---|---|---|---|
| Qualify on rent | Yes, combined rent of all units | Often requires tax returns and personal income | Based mostly on the deal, for a short term |
| Borrow in an LLC | Standard | Varies by bank | Common |
| Long-term hold | 30-year terms available | Varies; some portfolio loans have shorter terms | Usually short-term only |
| Purchase leverage | Up to 80% LTV | Varies by bank | Varies; fees and terms vary |
| Cash-out refinance | Up to 75% LTV | Varies | No long-term option |
| Loan size | From $150,000, no stated maximum | Set by the bank's appetite | Varies |
| Where they lend | All 50 states and DC | Usually local or regional | Usually local |
With a DSCR loan, we add up the rent of all units and divide it by the monthly payment, including principal and interest, taxes, insurance and any HOA dues. A ratio of 1.0x means the rent covers the payment. Our standard minimum is 1.0x, and sub-1.0 programs exist for some deals.
On a Tennessee fourplex, all four units' rent counts. In Memphis, the appraiser will compare with nearby fourplexes; in Nashville, newer duplexes are usually compared with similar new builds.
Each size has its own guide: our duplex, triplex and fourplex pages cover leases, vacancies and unit mix in more detail, and the DSCR calculator lets you test a deal before you call.
Tennessee charges a recordation tax on the deed and a separate tax on recorded mortgages, so financing adds a closing cost. Residential property is assessed at a share of appraised value, and rates are set by county and city. Memphis properties pay both city and Shelby County taxes.
State law generally prohibits local rent control. Nashville has short-term rental permit rules that matter if you plan to rent a unit by the night. Confirm current local rules before you buy.
Say you buy a brick fourplex in Midtown Memphis for $360,000 at 80% LTV, with each unit renting for $900 a month. Taxes are estimated at $4,800 a year and insurance at $2,600.
This example is illustrative and not a quote. Rent of $3,600 divided by a total payment of $2,606 gives a DSCR of about 1.38x, above our 1.0x standard minimum. Strong rent relative to price leaves a cushion, which helps cover repairs on an older building. Get a quote with the form below to test your own fourplex.
| Item | Amount |
|---|---|
| Purchase price | $360,000 |
| Loan amount (80% LTV) | $288,000 |
| Down payment | $72,000 |
| Monthly rent (4 units) | $3,600 |
| Estimated principal and interest | $1,989 |
| Property taxes ($4,800 a year) | $400 |
| Insurance ($2,600 a year) | $217 |
| Total monthly payment | $2,606 |
| DSCR | 1.38x |
Ask every lender the same questions so you can compare offers on equal terms.
How LendingStreet answers: up to 80% LTV on a purchase and up to 75% on cash-out; a 1.0x standard minimum with sub-1.0 programs; cash-out seasoning that varies by program; LLC borrowing as standard; a timeline we set out once we see the file; and loans from $150,000 with no stated maximum, though max LTV can be lower on larger balances. If you need speed to win the deal, our bridge loans can close in as little as 10 days and refinance into a DSCR loan.
Send the address, price, leases and how the property is titled. We will check the ratio and send options. Use the form below or call (877) 298-1001.
If you own five or more Tennessee rentals, ask about a blanket loan. Buildings of 9 or more units are commercial; see our commercial page.
Our top pick is LendingStreet. We qualify Tennessee duplexes, triplexes and fourplexes on combined rent, allow LLCs, offer up to 80% LTV to buy and 30-year terms, and lend statewide.
Yes. We finance non-owner-occupied duplexes, triplexes and fourplexes across Tennessee, and we lend in all 50 states and DC.
It depends on title. If each side is a separate unit under a horizontal property regime, it is usually financed as a single unit per side. Tell us how it is titled.
There is a recordation tax on the deed and a separate tax on the mortgage. Your title company will estimate both, and we include them in your cash to close.
No. A DSCR loan qualifies on the property's rent. We look at credit (620 minimum), assets for the down payment and reserves, and the building's rent and expenses, not your W-2s or tax returns.
Yes. LLC borrowers are standard on our DSCR loans. You will sign for the loan personally, and we will ask for the LLC's formation documents and operating agreement.
Yes. A DSCR rate-and-term refinance can replace a hard money, bridge or bank balloon loan at up to 80% LTV on some programs. Seasoning varies by program, so ask early.
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.